You probably already know all this better than I do but you have to make sure you can obtain enough rent to pay the mortgage, property taxes, insurance, repairs, and other expenses or else the result will be a negative cash flow. Also there is the tenants and toilets problem. Hiring a professional property manager doesn’t always work, especially long distance ones...they typically charge at least 10 percent of the gross rent. What if they can't keep they property rented? Or don’t care about it? Sounds hard to believe but it happens. They don’t have as great an interest in managing the property as you would and may not be particular who they rent to. I’m not very trusting when it comes to people who promise to care for my investments and watch out for my money, so personally I’d prefer not to have to trust someone several thousand miles away in another country.
Also, Florida weather sounds nice, but I think it stinks (although less so than where I live). I know several people who moved there and didn’t stay…they didn’t like the hot, humid, buggy climate or the hurricane season. Last time I was there it was in May and it rained for about 30 min. every morning then went to 90 degrees.
But that’s me. If you decide to do it, you have more guts than I do.
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Originally posted by masscatAll of those reasons, plus, seventy year old men strut on the beach in leopard print thongs.
Also, Florida weather sounds nice, but I think it stinks (although less so than where I live). I know several people who moved there and didn’t stay…they didn’t like the hot, humid, buggy climate or the hurricane season. Last time I was there it was in May and it rained for about 30 min. every morning then went to 90 degrees.
Originally posted by masscatThanks, many great points that I have looked into.
You probably already know all this better than I do but you have to make sure you can obtain enough rent to pay the mortgage, property taxes, insurance, repairs, and other expenses or else the result will be a negative cash flow. Also there is the tenants and toilets problem. Hiring a professional property manager doesn’t always work, especially long distanc ...[text shortened]... en went to 90 degrees.
But that’s me. If you decide to do it, you have more guts than I do.
The risks are big I know, but I am not looking for the investment to be a cash cow and can cope with a degree of negative cashflow. I would be more worried about a loss in the asset value. With rumours of a lowering of US interest rates and the current property slump it looks like the next few years may present a very good opportunity. The exchange rate is such a good option.
What you say about the Florida weather concerns me big time as I hate the same things. Where close to the East coast would you recommend?
Nowadays it seems that many rental areas have great internet forums.
Originally posted by AmauroteQuicker, but Florida is a much more common holiday destination for Brits. So if you are a tightwad like me its easier to get cheaper flights. However I am going off Florida.
Wouldn't Maine or one of the North-Eastern areas be easier to get to?
I was wondering if anyone knows of holiday rental places around Maine etc. That they would personally recommend.
Originally posted by SeitseThanks.
If you are serious about this, be sure to contact a professional:
http://www.joneslanglasalle.com/en-GB/
It's just one of the many options, but a really good one.
Big bucks = Big professionals.
With US ownership laws for foreigners, there may be a need to set up some holding company.
Originally posted by petrosianpupilYou may want to check out a little site I set up to track various articles on the housing market, I think there's a bit of uncertainty around the market, particularly in the US at the moment.
I will be in the states later this year, looking at buying a property.
I want a place that I can rent out but use myself. It has to be relatively easy to get to from England.
I had thought about Florida as it is easy to rent out to Brits as well.
Any advice?
http://www.housepricechat.com
This is related to another site which Russ and I set up a few years ago following the closure of the Financial Times forums on which I used to contribute within the house price forum - under the username RedHotPawn.
http://www.serioustopics.com