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Investment property UK vs. US
Hi everyone If you had some savings to invest in a second property for return on rent and property appreciation (hopefully!), would you consider to buy in the UK or US and why? Would be interesting to share some thoughts! |
Re: Investment property UK vs. US
Originally Posted by Peter.st.giles
(Post 12756118)
Hi everyone If you had some savings to invest in a second property for return on rent and property appreciation (hopefully!), would you consider to buy in the UK or US and why? Would be interesting to share some thoughts! https://cimg5.ibsrv.net/gimg/british...2c569a285c.png https://cimg7.ibsrv.net/gimg/british...060b4603a4.png |
Re: Investment property UK vs. US
Depends on where you would be living and your status. That would affect tax. In my view it is not a good idea to have rental property 4,000/5000 miles away.
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Re: Investment property UK vs. US
The US. Because I live here and it makes it simpler for many reasons.
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Re: Investment property UK vs. US
Comparing major cities such as London vs New York or LA, rental return and property appreciation value? There’s property tax in the US depends on the state you live, ranging from 1-3% could easily cost over $10,000 a year, whereas the UK doesn’t really have property tax, council tax is not the equvelent and typically cost £1-2k a year, so is the cost of keeping a property cheaper in the UK than the US? |
Re: Investment property UK vs. US
Originally Posted by Peter.st.giles
(Post 12756369)
Comparing major cities such as London vs New York or LA, rental return and property appreciation value? There’s property tax in the US depends on the state you live, ranging from 1-3% could easily cost over $10,000 a year, whereas the UK doesn’t really have property tax, council tax is not the equvelent and typically cost £1-2k a year, so is the cost of keeping a property cheaper in the UK than the US? In my opinion, buyers of rental property in the UK at the moment need to choose between ROI or good capital appreciation, it's difficult to get both. |
Re: Investment property UK vs. US
Originally Posted by Peter.st.giles
(Post 12756369)
Comparing major cities such as London vs New York or LA, rental return and property appreciation value? There’s property tax in the US depends on the state you live, ranging from 1-3% could easily cost over $10,000 a year, whereas the UK doesn’t really have property tax, council tax is not the equvelent and typically cost £1-2k a year, so is the cost of keeping a property cheaper in the UK than the US? |
Re: Investment property UK vs. US
Originally Posted by Peter.st.giles
(Post 12756369)
There’s property tax in the US depends on the state you live, ranging from 1-3% could easily cost over $10,000 a year, |
Re: Investment property UK vs. US
So glad tenants where we live don't pay the property tax, on our apartment the property tax would be around $300 per month, and with high rent, well I think we would be homeless if we had to pay the tax on top of rent.
Originally Posted by spouse of scouse
(Post 12756376)
Tenant pays Council tax in the UK, not the landlord.
In my opinion, buyers of rental property in the UK at the moment need to choose between ROI or good capital appreciation, it's difficult to get both. |
Re: Investment property UK vs. US
Originally Posted by Jsmth321
(Post 12756805)
So glad tenants where we live don't pay the property tax, on our apartment the property tax would be around $300 per month, and with high rent, well I think we would be homeless if we had to pay the tax on top of rent.
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Re: Investment property UK vs. US
Don't forget the nasty surprise that exchange rates can do to Capital Gains Tax on a future sale - you can have to pay US tax on a UK property which hasn't gone up in value in £ but the exchange rate has moved against you.
EG £200K house bought today at $1.3 = purchase cost of $260,000 house sold in 5 years time for £200K but the rate is now $1.5 so sale in $ = $300K therefore $40K takable $ gain. There can also be a mortgage currency gain which is taxable. |
Re: Investment property UK vs. US
I would look into desirable vacation areas and renting via VRBO or AirBnb. Much more income potential and a place for your own vacation or future retirement home. |
Re: Investment property UK vs. US
As a second home (if you own another house in U.K. OR abroad) or buy to let in U.K. Stamp Duty is not to be sneezed at, even if you’re a cash buyer. 8% if valued over £300k. Goes even higher if you hit the next bracket. Many leaseholds in UK desirable areas now have clauses prohibiting short term lets too. Build yourself a spreadsheet. No quick and easy answer. If you were thinking of using it yourself too, there’s the two week stay limit if you want to take the tax breaks from running it as a business. It gets complicated very fast. |
Re: Investment property UK vs. US
Originally Posted by Peter.st.giles
(Post 12756118)
Hi everyone If you had some savings to invest in a second property for return on rent and property appreciation (hopefully!), would you consider to buy in the UK or US and why? Would be interesting to share some thoughts! |
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