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Financially better off in uk????

Financially better off in uk????

Old Dec 11th 2021, 5:31 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
but we can’t get our head around property tax would be £12-13k a year its staggering.
Which is why I suggested looking at other places, you wouldn't pay anywhere near that in most other locations. Do they have other offices that may be possible to transfer to?

Also worth noting that you're looking at temporary employment based visas, so probably wouldn't want to buy property anyway, and you wouldn't pay property tax if renting.

Last edited by christmasoompa; Dec 11th 2021 at 5:35 pm.
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Old Dec 11th 2021, 5:34 pm
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Default Re: Financially better off in uk????

IMO there is much to consider when children are involved. They will be leaving their friends and family behind, there will be disruption in their education…do not assume it will be the same as the UK. If you stay until one or all of your children go through uni, you run the risk that they will find a job/partner and not want to go back to the UK. Will their qualifications be recognized in the UK.

As far as financials are concerned. The NE US is generally a very expensive place to live. I always say the US is like Disneyland…nothing is what it seems. If you have a good income and live in a nice, safe neighbourhood, life is good…but it will cost you. Of course there are always cheaper areas, especially if they are quite a distance to the large cities.
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Old Dec 11th 2021, 5:36 pm
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Default Re: Financially better off in uk????

Originally Posted by christmasoompa View Post
Which is why I suggested other locations, if his employer has other locations available. You wouldn't pay anywhere near that elsewhere.
thank you. We like ma and want to stay New England (and be not too far from coasts). Plus because of husbands work dictates he needs cities mainly Boston. We can then live suburbs and have bit of land around us so we aren’t in a built up city area. Most of the property tax seems to be similar in states of that area of just over 1pc.

thanks for your help. Appreciate it

Last edited by Clarkoles; Dec 11th 2021 at 5:38 pm.
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Old Dec 11th 2021, 5:37 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
Hi there. We are new to this forum. For some time we have debating whether to grab an opportunity of moving in massachusetts. We toyed with the idea 20 years ago but ended up starting a family. We can’t complain at all with where we live and have a large (USA sized family) home in the country which we have renovated and made a profit on. Of course 40pc income tax isn’t welcome but even still, I have a feeling we might be financially better off staying put. That aside, moving to USA wouldn’t be for financial reasons, it would be wanting to try something new, loving the area and wanting a fresh start. However a financial loss is unviable.

Once we deal with staying in touch with family and friends (and the emotional separation), the little trivial differences which we will accustom our selves to. The biggest hurdle I think will be a financial long term loss and I am wondering whether someone could perhaps verify I’m not going mad with my line of thought (from what I have researched). I have however only just started with my research and I don’t get too clouded with dreams.

So for us we will earn more in the USA and income tax will be lower. However
the long term profits seem (from what I have worked out) far far less favourable given that the yearly salary gain will be eaten up with property tax, state taxes and family health insurance. This is where I fear we will be stung. For us over a 20 year period we will be paying back over $200k in property tax and if we wanted to sell (at the same value just for calculation) $60k on capital gains tax. Compare this to uk and we would be keeping far more profit (once you’ve dealt with getting around inheritance tax)Has anyone else made these calculations and found out they are better staying put! Sadly

To go back to your initial questions regarding profits from property, we sold our house in Berkshire when we moved to the US some 20 years ago. Our old house has increased in value far, far more than our properties here in the US (even though we live in California)
Property tax is very high here, you have to consider capital gains and medical insurance over the years has been extremely costly. Luckily I had a job to come to and hubby sold his small company in the UK to a US company, and he then worked for them. No children to worry about.
From a property point of view we have not done as well (on paper) as if we had stayed in the UK. However, our investments have done well and our income was always good. We moved over when we were 50 and 51. Worked until 65 in order to qualify for Medicare in our retirement. Lots to think about.
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Old Dec 11th 2021, 5:38 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
Lovely. Many thanks. Once again google talking about visas being of 1 year duration.

If all this came to fruition and hypothetically worked out it brings us back to our original question (which is why we wanted to rule out going to the USA) - Long term financial property loss of a USA primary residence against the uk equivalent etc. It was a big jump of 20 years I know but we can’t get our head around property tax would be £12-13k a year its staggering.
I wish we only paid that amount in property taxes, when we lived in the US. They are high in many areas because they fund the local schools and police. Usually good schools/low crime areas mean high house prices/rents and property taxes. It is a complete package…they go hand in hand.
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Old Dec 11th 2021, 5:41 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
thank you. We like ma and want to stay New England (and be not too far from coasts). Plus because of husbands work dictates he needs cities mainly Boston. We can then live suburbs and have bit of land around us so we aren’t in a built up city area. Most of the property tax seems to be similar in states of that area of just over 1pc.

thanks for your help. Appreciate it
Ok, fair enough, but if it's a work based temp visa then you would be best not to buy anyway, so property taxes may not be relevant. If close to Boston then there is the British School which may help with education transition as yours are at crucial ages, the same as ours.
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Old Dec 11th 2021, 5:41 pm
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Default Re: Financially better off in uk????

Originally Posted by SanDiegogirl View Post
To go back to your initial questions regarding profits from property, we sold our house in Berkshire when we moved to the US some 20 years ago. Our old house has increased in value far, far more than our properties here in the US (even though we live in California)
Property tax is very high here, you have to consider capital gains and medical insurance over the years has been extremely costly. Luckily I had a job to come to and hubby sold his small company in the UK to a US company, and he then worked for them. No children to worry about.
From a property point of view we have not done as well (on paper) as if we had stayed in the UK. However, our investments have done well and our income was always good. We moved over when we were 50 and 51. Worked until 65 in order to qualify for Medicare in our retirement. Lots to think about.
hello there. Thank you so much for your reply. Yes this is exactly what I wanted to hear. I wanted to hypothetically zoom forward with the potential of us living there. I have to look at the bigger aspects if we were going to make it work for us. We are 50 now so need to realistically think about where we would retire. On the higher end of the property market we have invested so much. We needed to compare yearly property tax and capital gains against the uk (and that’s not even taking in account fluctuating markets). It’s timing too regarding the children.

Yes I agree there is so much to think about. I really appreciate your reply. Thank you.

Last edited by Clarkoles; Dec 11th 2021 at 5:45 pm.
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Old Dec 11th 2021, 5:48 pm
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Default Re: Financially better off in uk????

Originally Posted by christmasoompa View Post
Ok, fair enough, but if it's a work based temp visa then you would be best not to buy anyway, so property taxes may not be relevant. If close to Boston then there is the British School which may help with education transition as yours are at crucial ages, the same as ours.
I agree, generally buying property for a few years, is not viable. Most people use realtors to buy and sell. Normal realtor fees are around 6%, this is split between the buying and selling agent. If you are trying to sell yourself, you may have difficulty, because a realtor is not going to recommend it without the commission. If you rent, property taxes are paid by the owner, property taxes are then included in the rent.
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Old Dec 11th 2021, 5:54 pm
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Default Re: Financially better off in uk????

Originally Posted by Jerseygirl View Post
I agree, generally buying property for a few years, is not viable. Most people use realtors to buy and sell. Normal realtor fees are around 6%, this is split between the buying and selling agent. If you are trying to sell yourself, you may have difficulty, because a realtor is not going to recommend it without the commission. If you rent, property taxes are paid by the owner, property taxes are then included in the rent.

thank you. Yep short term whilst working there on a visa we would rent our uk house out and rent there. I know I’m jumping ahead for long term but I’m trying to save guard us financially in case we like it and want to stay. I think we will be loosing hundreds of thousands of property and capital gains tax in comparison to the uk. Thanks for your help. Popping off to do some dinner

Last edited by Clarkoles; Dec 11th 2021 at 6:04 pm.
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Old Dec 11th 2021, 6:04 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
thank you. Yep short term whilst working there on a visa we would rent our uk house out and rent there. I know I’m jumping ahead for long term but I’m trying to save guard us financially in case we like it and want to stay. I think we will be loosing hundreds of thousands of property and capital gains tax. Of course we would want a house size like for like and I think this is the problem financially over there even with no mortgage. Thanks for your help. Popping off to do some dinner
With the properties we have bought over the years, and this is very subjective, I've always thought you get more bang for your buck in the US. Our first house here in US back in 2000 we bought for $900K , 4 bedrooms, 4 bathrooms, an acre of land - we thought we had a much bigger house and more property for that price than we could have obtained in the UK. Did not go up in value very much though. Second house was the same - bigger, better.
We actually bought while still on the L-1. Got our Green cards 6 months after we moved in. You've got to have faith that you jobs are going to continue
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Old Dec 11th 2021, 6:06 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
know I’m jumping ahead for long term but I’m trying to save guard us financially in case we like it and want to stay.
Also maybe not as easy as you're thinking - to get a 'green card' generally you'll need your husband's employer to sponsor that as well. Often employers are reluctant to do so, as not only does it cost them a lot of money in fees and immigration lawyers cost, but also it means the employee is no longer tied to them and can go and work for somebody else. If you did think you might want to stay, you'd need to get green card sponsorship in writing in the contract.

Originally Posted by Clarkoles View Post
Of course we would want a house size like for like and I think this is the problem financially over there even with no mortgage.
Yep. Our house here is around 6500sq ft, and even though we live in a very pricey part of the UK there's no way we could afford anything of a similar size in the Boston burbs!
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Old Dec 11th 2021, 6:06 pm
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Default Re: Financially better off in uk????

Originally Posted by christmasoompa View Post
Ok, fair enough, but if it's a work based temp visa then you would be best not to buy anyway, so property taxes may not be relevant. If close to Boston then there is the British School which may help with education transition as yours are at crucial ages, the same as ours.

Thank you. Oh yes we wouldn’t buy initially. We would rent ours out and rent somewhere in the us. Replied with similar answer to question below and dashing off as just doing dinner.

thank you - I will check out the school. Thanks ever so much for your help
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Old Dec 11th 2021, 6:15 pm
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Default Re: Financially better off in uk????

Originally Posted by christmasoompa View Post
Also maybe not as easy as you're thinking - to get a 'green card' generally you'll need your husband's employer to sponsor that as well. Often employers are reluctant to do so, as not only does it cost them a lot of money in fees and immigration lawyers cost, but also it means the employee is no longer tied to them and can go and work for somebody else. If you did think you might want to stay, you'd need to get green card sponsorship in writing in the contract.



Yep. Our house here is around 6500sq ft, and even though we live in a very pricey part of the UK there's no way we could afford anything of a similar size in the Boston burbs!
Yes I know what you mean. And same with any major city too. Sorry by suburbs I meant commuter belt so a train distance to work for my husband. I appreciate the town set ups are different.
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Old Dec 11th 2021, 6:17 pm
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Default Re: Financially better off in uk????

Originally Posted by Clarkoles View Post
Yes I know what you mean. And same with any major city too. Sorry by suburbs I meant commuter belt so a train distance to work for my husband. I appreciate the town set ups are different.
Ah, no worries, I actually meant our own move, we're looking at the Newton/Needham/Wellesley area and it's blooming pricey!
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Old Dec 11th 2021, 6:18 pm
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Default Re: Financially better off in uk????

Originally Posted by christmasoompa View Post
Also maybe not as easy as you're thinking - to get a 'green card' generally you'll need your husband's employer to sponsor that as well. Often employers are reluctant to do so, as not only does it cost them a lot of money in fees and immigration lawyers cost, but also it means the employee is no longer tied to them and can go and work for somebody else. If you did think you might want to stay, you'd need to get green card sponsorship in writing in the contract.



Yep. Our house here is around 6500sq ft, and even though we live in a very pricey part of the UK there's no way we could afford anything of a similar size in the Boston burbs!

Good idea to find out the US tax implications of being a GC holder, if you wish to return to the UK.

Last edited by Jerseygirl; Dec 11th 2021 at 6:26 pm. Reason: Grammar
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