Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Buying property in the US

Buying property in the US

Old Sep 6th 2018, 9:44 pm
  #31  
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 5,798
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by vespucci View Post
One wonders why the tenants don't buy it and not have to worry about a landlord. In just 10 years they pay the price of 3 houses.
Sadly, someone renting a $495 per month apartment is very likely not in a position to qualify for a mortgage.
Nutmegger is offline  
Old Sep 9th 2018, 2:36 pm
  #32  
BE Enthusiast
 
Joined: Mar 2017
Posts: 301
Ecto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by dale dalton View Post
I do think it will be a big headache. But I also think it will be a big learning experience.

I am not going to anything until I have researched it fully (even if it means missing out on the property and waiting for another one, which is probably what will happen).
I was hoping that there might be an online guide. But I think I might have to piece one together from all the info that is available.
Still this thread, has been very useful. I had considered the cost of taxes, but not how to pay them, so that will be one of many areas to research.
As a landlord in the UK l deal with the headache because generally the properties will increase in value over time and therefore it is a good investment.
This isn’t quite true of properties in the US where generally (unless in v exclusive areas) properties often depreciate as construction is completely different, new construction is often more valuable and the upkeep on things like the roof, HVAC etc is expensive and requires replacement a lot more frequently then they reasonably should.
In short this isn’t the safe investment it would be in the UK and l would either rethink totally or look at other markets in the US.
Good luck with whatever you decide.
Ecto17 is offline  
Old Sep 9th 2018, 2:49 pm
  #33  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,146
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by Ecto17 View Post

As a landlord in the UK l deal with the headache because generally the properties will increase in value over time and therefore it is a good investment.
This isn’t quite true of properties in the US where generally (unless in v exclusive areas) properties often depreciate as construction is completely different, new construction is often more valuable and the upkeep on things like the roof, HVAC etc is expensive and requires replacement a lot more frequently then they reasonably should.
In short this isn’t the safe investment it would be in the UK and l would either rethink totally or look at other markets in the US.
Good luck with whatever you decide.
You obviously own property in the South of the UK. If you look at house prices up north they do not appreciate very much, but have high cash flow
You also don't live on the west coast of America where house prices and rentsren up about 10% a year.
with rentals it tends to be appreciation or cash flow no matter which country you buy in.
mrken30 is offline  
Old Sep 9th 2018, 4:05 pm
  #34  
BE Enthusiast
 
Joined: Mar 2017
Posts: 301
Ecto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond reputeEcto17 has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by mrken30 View Post
You obviously own property in the South of the UK. If you look at house prices up north they do not appreciate very much, but have high cash flow
You also don't live on the west coast of America where house prices and rentsren up about 10% a year.
with rentals it tends to be appreciation or cash flow no matter which country you buy in.
I am not sure where l own properties in the UK or where l live in the US helps the OP much. But definitely wish owned on the west coast!!
My point was that the OP should be aware that the markets are very different, traditionally the UK is a safer market (it is an overpopulated small island which no doubt helps!) and not to underestimate the cost of ownership in the US or overestimate the potential for increasing in value. If the figures work outside of that, great.

Ecto17 is offline  
Old Sep 9th 2018, 7:42 pm
  #35  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,146
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by Ecto17 View Post

I am not sure where l own properties in the UK or where l live in the US helps the OP much. But definitely wish owned on the west coast!!
My point was that the OP should be aware that the markets are very different, traditionally the UK is a safer market (it is an overpopulated small island which no doubt helps!) and not to underestimate the cost of ownership in the US or overestimate the potential for increasing in value. If the figures work outside of that, great.

I think the biggest issue with buying oversea property is that you are open to FX changes. The pound is very weak at the moment. You also need to deal with other legislation. It's bad enough with the differences between States, let alone adding in the federal differences. I would not say the UK is a safer market, unless you are buying rural properties. I would not recommend that to anyone, whether UK or US. The rental demand is where the job market is generally. Maintenance costs for both US and UK I have found to be similar. The UK properties have less issues, but a roof on a UK property costs a lot more than a roof on a US property, especially after currency conversion.

At the end of the day, it is up to the OP. I can only give advice from my personal experience of owning property in both countries.
mrken30 is offline  
Old Sep 11th 2018, 3:14 pm
  #36  
MODERATOR
 
Norm_uk's Avatar
 
Joined: Dec 2004
Location: Dubai
Posts: 6,265
Norm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by dale dalton View Post
I am a UK Citizen with no visas for the US. I plan to rent out the property and have taken account the taxes.
You need a US bank account normally which requires you to be in the US to sign at the time of opening. However you can get someone there to open an LLC which you can own the property through, and get a management company to collect the rent and pay you directly - you'll probably need to do taxes yourself though.

There are companies who specialise in buy-to-rent in the US who have an end to end service for the whole process. The slowest part is usually opening the LLC, which depending on State/County can take a couple of weeks to three months. The beauty of an LLC is you buy more property later on if you like through it.

I am currently researching these end to end companies for a side project which might turn into a job - the one that looks most promising has stock in Texas, Michigan and Florida though so not much use to you in the area you're looking at right now?

N.
Norm_uk is offline  
Old Sep 11th 2018, 4:28 pm
  #37  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,146
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Buying property in the US

The downside with buying through an llc is that lenders tend not to want to fund residential loans to an llc. Also insurance is a little higher. However if you are buying commercial properties, it makes little difference. I am aware of a couple of companies that package up llc/property deals. i have found that they add a slight premium for their service.
mrken30 is offline  
Old Sep 12th 2018, 1:10 pm
  #38  
MODERATOR
 
Norm_uk's Avatar
 
Joined: Dec 2004
Location: Dubai
Posts: 6,265
Norm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by mrken30 View Post
The downside with buying through an llc is that lenders tend not to want to fund residential loans to an llc. Also insurance is a little higher. However if you are buying commercial properties, it makes little difference. I am aware of a couple of companies that package up llc/property deals. i have found that they add a slight premium for their service.
Indeed. If it's all wrapped up in an one stop shop service that's something people will pay a premium for...especially if financing can be arranged.

Some people like to do it all themselves of course - most people prefer a reputable agent or firm to handle it and just get their cheque every month or quarter.

N.
Norm_uk is offline  
Old Sep 12th 2018, 7:04 pm
  #39  
BE Enthusiast
 
Joined: Nov 2012
Posts: 819
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by Norm_uk View Post
You need a US bank account normally which requires you to be in the US to sign at the time of opening. However you can get someone there to open an LLC which you can own the property through, and get a management company to collect the rent and pay you directly - you'll probably need to do taxes yourself though.

There are companies who specialise in buy-to-rent in the US who have an end to end service for the whole process. The slowest part is usually opening the LLC, which depending on State/County can take a couple of weeks to three months. The beauty of an LLC is you buy more property later on if you like through it.

I am currently researching these end to end companies for a side project which might turn into a job - the one that looks most promising has stock in Texas, Michigan and Florida though so not much use to you in the area you're looking at right now?

N.
A US domestic LLC would be entirely unsuitable for a UK resident. It would be a UK resident company subject to several layers of taxation.
Cook_County is offline  
Old Sep 13th 2018, 3:51 am
  #40  
MODERATOR
 
Norm_uk's Avatar
 
Joined: Dec 2004
Location: Dubai
Posts: 6,265
Norm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond reputeNorm_uk has a reputation beyond repute
Default Re: Buying property in the US

Originally Posted by Cook_County View Post
A US domestic LLC would be entirely unsuitable for a UK resident. It would be a UK resident company subject to several layers of taxation.
In the case of UK residents they would need to seek proper tax advice to see what the best method of ownership is for them of course.

N.
Norm_uk is offline  
Old Oct 30th 2018, 5:49 pm
  #41  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,146
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Buying property in the US

I just came across this today and thought it may help somebody. I have never used this company, but they will do mortgages for foreign nationals

https://www.axosbank.com/Personal/Mo...reign-National
mrken30 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.