All Forum Posts by: Jon Blownerd

Hi all

I am looking for an unbiased / third party home inspector and appraiser to assess an investment property. They must be familiar with the South Chicago / Calumet Heights / Pill Hill / South Deering areas.

Does anyone have any recommendations?

Thanks

Yeah, thanks. I was thinking about that... May be a tax nightmare though !!

Tanya: how am I making 54 points when transferring GBP to USD? This assumes that all prices from uk to us are 1:1 and that we just happen to benefit from a very strong pound...in reality the pound is weak versus recent history (and will weaken further with impending us rate hikes).

Sam: 10-12% gross yield can also be achieved in the UK. I will definitely be using leverage to maximise my cash flow. I will not be selling any time soon!

Max: i don't see your 'prices are high in uk so will correct and soon go low' as a great argument. What's to say rent / income won't increase instead to make the multiples more sensible? By the same logic, maybe Atlanta rents will come crashing down (rather than house prices shooting up). I would love to be proven wrong! Out of curiosity, where in ATL are you finding 20-25% gross yields? I am actually from ATL so have been looking at property in the area.

Thanks guys

Hi all

I am a dual us / uk citizen and trying to decide where to buy some rental properties. I live in the UK but may move back to the US in the next few years. Regardless, the properties won't be near where I actually live in either country as yields where I would live are poor. I have done quite a lot of research. Here is my opinion so far:

US:

- 30yr fixed principle repayment mortgage, so actually build equity assuming 0 appreciation

- rates around 4.2% right now (also get a small discount through work)

- first 4 properties 20% down, then 25%

- can deduct all expenses plus depreciation

- I have a large liability in USD (student loan) so would be good to have a USD cash flow and avoid FX risk

UK:

- interest only mortgages with 3-5% fixed rates for 3-5 years...then need to refinance (which can be expensive and unpredictable...also interest only so relying on appreciation)

- however, interest only improves the cash flow significantly as the mortgage amounts are tiny

- 25%+ down

- slightly less tax friendly, it seems

- much less space, higher population density and growth...points to higher average appreciation potential

Does anyone have any thoughts? My strategy would be buy / hold / rent for cash flow and assume minimal appreciation. The fixed rate mortgages of the us appeal but the higher cash flow and likely higher appreciation of uk property is also appealing. But having to refinance every 3-5years seems risky, annoying, and expensive.

Would love to hear your thoughts!

Thanks