Posted by JHyre in Ohio on December 19, 2001 at 11:18:46:
I haven’t looked at the UK-US Income Tax Convention lately, but it may have some goodies, especially if you structure things to be resident in the UK. Pay special attention to the definitions of citizen and resident…I’m not sure where you fall as a dual-citizen.
Posted by JHyre in Ohio on December 18, 2001 at 06:38:29:
is unfortunately “no”, so you don’t get to question (2). RE in US is not “like-kind” to RE in UK.
Where are you in the UK? I have a friend who invests in Aberdeen…he likes to rent to the oil companies…steady income, no hassle. Question: Are you a US or UK citizen? Where do you reside? There may be some other options here…hearsay has it that UK has no gains tax on the sale of rentals…do you know if that’s true?
Posted by Chantal on December 18, 2001 at 13:08:06:
Darn.
I am in London. I live part of the year in London and the other part California. I want to buy a flat in Notting Hill or Kensington, but a decent two bed, 1200 sq. ft. in a mansion block with a lift or maybe a maisonette is going to run me at least $800k. I was planning on waiting for the next bottoming of the market as it has been too hot in recent years, but it always goes back down quite a bit when it slumps, so that same property I could probably pick up for $600k in a slump.
They do, however, rent really well and if I put down 20%, then I could let it for 40 or so weeks of the year and pay all my expenses, allowing me to live in it the other 12 weeks for free, which would suit me just fine.
I am a dual citizen, which has immense benefits (except for that pesky US requirement that I report all of my worldwide income. In the UK you only have to report your UK income which is why there is a proliferation of ‘off-shore’ tax havens in the Channel Islands and the Isle of Man) and allows me to vote in both US and UK elections (I am a card holding Republican and a Conservative).
Yes, capital gains on property are not taxed and anothe benefit I love is that your tenants in a rental property pay your property (council) tax. Mortgage rates are also quite low now. My 25 year repayment mortgage is variable and it is right around 5% at the moment.