Investment property UK vs. US
Oct 30th 2019, 3:08 am
#1
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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!
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!
Oct 30th 2019, 8:59 am
#2
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Re: Investment property UK vs. US
Oct 30th 2019, 11:23 am
#3
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Location: Athens GA
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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.
Oct 30th 2019, 12:31 pm
#4
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Joined: Apr 2010
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Re: Investment property UK vs. US
The US. Because I live here and it makes it simpler for many reasons.
Oct 30th 2019, 1:28 pm
#5
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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?
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?
Oct 30th 2019, 1:34 pm
#6
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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?
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.
Oct 30th 2019, 2:11 pm
#7
Lost in BE Cyberspace
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Posts: 6,148
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?
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?
Oct 30th 2019, 3:33 pm
#8
Deep in the woods of CT
Joined: Feb 2010
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Re: Investment property UK vs. US
Oct 31st 2019, 2:56 am
#9
Account Closed
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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.
Oct 31st 2019, 3:04 am
#10
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Location: Western Australia
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Re: Investment property UK vs. US
Same in Australia JS, landlord pays the tax. I have one lovely tenant in the UK who's been with me for nearly 3 years, I recently told him I'm lowering his rent so we go halves in the Council tax. I'm not trying to make myself out to be a saint by doing that, keeping a great tenant happy by helping them out whenever possible is good business sense too.
Oct 31st 2019, 3:30 pm
#11
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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.
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.
Oct 31st 2019, 5:27 pm
#12
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Location: Near Lynchburg Tennessee, home of Jack Daniels
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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.
Oct 31st 2019, 8:21 pm
#13
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Location: from Yorkshire, via Hampshire and Surrey to NC Triangle
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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.
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.
Nov 8th 2019, 7:53 am
#14
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Re: Investment property UK vs. US
I know a guy who owns 3 duplexes in Northwest Arkansas near Fayetteville, a nice part of the country that's constantly rated in the top five or ten best places to live in the USA. Mild weather, safe and low cost of living. Place is booming with many moving from CA etc. AR has also the most pro-landlord laws in the country. The 3 duplexes are together worth around $400-450K, gross rent is $46K p.a., insurance $3.5K, prop.taxes $3.5K.
