House in London, House in Texas ?
Jul 19th 2019, 9:59 pm
#16
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: House in London, House in Texas ?
https://www.marketwatch.com/story/ho...law-2018-06-11
Jul 21st 2019, 4:15 am
#17
L2, GC, Surrey, OH, TX!
Joined: Aug 2007
Location: Surrey to Dallas (via Ohio)!
Posts: 6,363
Re: House in London, House in Texas ?
we rented out our surrey home. You will probably underestimate the additional costs you will need to pay to keep the property rented - ie periods with no tenant - having to fix unexpected leaks, breakdowns damage etc. Things like boilers need replacing etc. we made money on our rental but its not as much as you think as the tenants are always breaking something. If you leave ANY appliances then factor in their replacement periodically. painting touch ups between tenants etc.
also remember if things change and you want to sell it for whatever reason - CGT can bite you very hard if the exchange rate goes in the wrong direction. we got stung for over 60k, for a paper profit because of the exchange rate when we bought it (even though this was years before we moved to the us)
also remember if things change and you want to sell it for whatever reason - CGT can bite you very hard if the exchange rate goes in the wrong direction. we got stung for over 60k, for a paper profit because of the exchange rate when we bought it (even though this was years before we moved to the us)
Jul 21st 2019, 9:17 am
#18
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: House in London, House in Texas ?
we rented out our surrey home. You will probably underestimate the additional costs you will need to pay to keep the property rented - ie periods with no tenant - having to fix unexpected leaks, breakdowns damage etc. Things like boilers need replacing etc. we made money on our rental but its not as much as you think as the tenants are always breaking something. If you leave ANY appliances then factor in their replacement periodically. painting touch ups between tenants etc.
also remember if things change and you want to sell it for whatever reason - CGT can bite you very hard if the exchange rate goes in the wrong direction. we got stung for over 60k, for a paper profit because of the exchange rate when we bought it (even though this was years before we moved to the us)
also remember if things change and you want to sell it for whatever reason - CGT can bite you very hard if the exchange rate goes in the wrong direction. we got stung for over 60k, for a paper profit because of the exchange rate when we bought it (even though this was years before we moved to the us)
Jul 21st 2019, 12:45 pm
#19
Forum Regular
Joined: Oct 2012
Posts: 111
Re: House in London, House in Texas ?
Would to great for US CGT if you happened to buy in 2008, when it was almost 2:1, and to be selling now....if only
Jul 21st 2019, 1:46 pm
#20
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: House in London, House in Texas ?
House purchase £200,000, sold today at £200,000 would be zero capital gain in the UK. For US purposes it would be purchased at $400,000 and sold at $250,000 so a loss of $150,000 which could be used to zero out other capital gains this year then carried forward future years to reduce more capital gains
Jul 21st 2019, 1:56 pm
#21
Forum Regular
Joined: Oct 2012
Posts: 111
Re: House in London, House in Texas ?
Do you mean £1>$2 ? Yes, it would be great for US CGT
House purchase £200,000, sold today at £200,000 would be zero capital gain in the UK. For US purposes it would be purchased at $400,000 and sold at $250,000 so a loss of $150,000 which could be used to zero out other capital gains this year then carried forward future years to reduce more capital gains
