saing or investing?

Tykva

Hello there,


I moved to the UK recently. I have savings back in my country, of which Im thinking whether to bring here.
Im so to say quite amateur saver in my country. But I don't know some peculiarities of the UK market (like all sorts of mortgage types - in my country we don't differentiate mortgages, there is just one for any occasion, savings accounts are also quite simple etc.). As an interest - Savings rates go up to 10% (on accounts that I can withdraw any moment and we don't pat a tax on capital gains) but £ exchange rate can be quite fluctuate, renting real estate brings less money as well as expenditures (3% tax) and effort is involved (fixing problems while at work etc.) and prices now after crisis don't really rise that much. Stock market is not liquid but savings accounts are less risky and in most cases the same earnings.


So saving money on interest account in the UK doesn't seem to be interesting. But I thought of real estate. Seems like in Greater London area real estate prices are rising quite well and are to be so. So every month rentals and real estate increase over years and less exchange rate risk might in the longer term equal to my annual 10% that Im getting on savings in my country. But I got an impression in other threads that renting involves lots of time and costs as well.


To start with my questions are:

what property is good/ the best to invest in the UK?
if I decide to go with let to buy and lets say have up to 50% deposit, can I get a let to buy mortgage (I did see that they are more expensive than any other mortgages) as if it will be my the only source of income to cover for this mortgage?
ANy other tips and advise to a new person in the UK in regard of savings and investing are welcome!
Please correct me if im wrong in some of my thoughts about local environment too.


Thanks to everyone!

Archi_Bald

You'll find that very few people here have information that is relevant for citizens of other countries. Also, your residency status (as determined by the HMRC from time to time) could have a major impact on how much tax you have to pay in the UK. E.g. http://uk.reuters.com/article/2013/12/05/britain-budget-property-idUKL5N0JK2OP20131205

What you find on this forum is generally applicable to UK / EU citizens who are considered (by the HMRC) ordinarily resident in the UK.

Tykva

Hello Archi,

yes, I see your point. Im on wife visa at the moment, so Im a resident, not a citizen yet. I think all rules applicable to UK citizens apply to me as well. At the mo my third month has just started, I have applied for NIN.

Archi_Bald

Tykva wrote: »

....so Im a resident....

It is not that simple. http://www.hmrc.gov.uk/international/res-dom.htm

Tykva wrote: »

I think all rules applicable to UK citizens apply to me as well.

I think you think wrong. E.g. no UK citizen needs a VISA to live in the UK. You do need one. All UK citizens are entitled to vote in all UK elections. You are not. etc etc