BTL here or overseas

catoutthebag

AnotherJoe wrote: »

You can invest across a broad spectrum of property but purely residential is less common but there are a few companies that do this..
You could have some in a foreign property fund. Some in UK. Some in UK builders and suppliers to the construction industry as a "proxy" for UK house prices. You can do all of those. With one BTL you have all your assets in one inflexible place.

You seem to have as an article of faith that you'd make money from being a landlord. Have you done any work to see if this is the case? have you noted all the ongoing expenses? Its not easy money any more. Most reckon that 5% return is good (aside whatever happens to rising prices and when you sell if the gain is high, you'll pay tax on that. Contrast that to dividends and rises in value all tax free with funds (by 'funds' I mean all manner of investment types)

Thanks - will consider your points

catoutthebag

AdrianC wrote: »

I've understood you. You've not understood me.

Do you have the first clue about the myriad of issues that may apply? If you aren't even willing to disclose what continent, let alone country, it's on, then how do you expect sensible and informed answers?

You've not understood me, again.
Yes I've been fully briefed.
I don't wish to disclose as a) not your business b) the issues you raised are not relevant. The tax situation is similar to here.
The property has been bought with cash and is making a small profit.
All the paperwork and issues have been taken care of
This is simply about buying a share into the consortium and I would pay tax on it like anything else.

AdrianC

<shrug> Fine. You ask a question, but are unwilling to give enough information to help you come to an answer.

cashbackproblems

catoutthebag wrote: »

I know plenty of people with second property. They're not chancers and it's running well for them.
So yeah let's have this club exclusive for cash entrepreneur shall we? No mate.

You sound clueless and haven't properly done your research

Those who bought 10 years+ have done well, its no longer an easy money making scheme, you have the SD along with capital gains and changes to the tax rules coming into force in 2017

you have missed the boat and this consortium business sounds messy

catoutthebag

cashbackproblems wrote: »

You sound clueless and haven't properly done your research

Those who bought 10 years+ have done well, its no longer an easy money making scheme, you have the SD along with capital gains and changes to the tax rules coming into force in 2017

you have missed the boat and this consortium business sounds messy

Messy? How messy? Family property bought with cash, constantly let out, rise in property value and making cash from rent? Messy, how, or is that just you?

catoutthebag

AdrianC wrote: »

<shrug> Fine. You ask a question, but are unwilling to give enough information to help you come to an answer.

Florida. Market is still relatively depressed there, but property will always be filled. Growth potential is still strong.

But as I say, too many shares and not enough profit to tempt me. I can take my share and make more what my annual share would make buying & selling in my specialist area

cashbackproblems

catoutthebag wrote: »

Messy? How messy? Family property bought with cash, constantly let out, rise in property value and making cash from rent? Messy, how, or is that just you?

God you sound stupid, none of those things are guaranteed and pretty much accepted that the economy will be faltering slowly over the next few years and qe is storing up inflation which will put rates up eventually

Messy as in people have different goals and these change constantly.

As i said you have missed the boat

iantojones40

cashbackproblems wrote: »

God you sound stupid, none of those things are guaranteed and pretty much accepted that the economy will be faltering slowly over the next few years and qe is storing up inflation which will put rates up eventually

Messy as in people have different goals and these change constantly.

As i said you have missed the boat

PLEASE, just leave him to it, he deserves all the stress, aggravation and financial losses that are sure to be coming his way.

AdrianC

catoutthebag wrote: »

Florida.

OK, so there's the potential for serious political instability in the short term.

Then there's the effects of FATCA, with the risks for your domestic banking arrangements once the IRS get their teeth into you.

Should the political risks turn into reality, will there be knock-on effects to the tourism industry there? Will there be knock-on effects to inward investment (which is what you're doing)?

How are the shares held? A US incorporated business structure of some kind?

Out of all the places in the world, the US is one of the ones I'd be least willing to invest in in the short to medium term.

Pixie5740

Bingo! I thought it was Florida when I read the OP.

Is property easily filled in Florida? I thought it was an area where supply was pretty high compared with demand, there are lots of new projects being approved.

Has the property in question really risen in value by $30k in 5 years? Have you checked that against recent sold prices for the same type of property in the area? If $80k is a reaslitic valuation how much of the $30k is actually profit your relatives have made? How much in tax and fees did they have to pay when they bought, what about taxes, maintenance, insurance, etc for letting the property, taxes and fees to sell? If this is such a good investment why don't your relatives want to hang on to the property for another 5 years? What happens when you run out of relatives to sell this property on to?

I get the impression from your other threads that you are desperate to invest in property somehow but the reality is that you can't afford to. Property is a highly illiquid as it is without buying with multiple relatives. Should you ever need to liquidate your asset it's going to be difficult. You might be better off investing your money elsewhere and/or paying down your own mortgage until you've done a bit more research about BTL and can afford to go it alone.