US OR UK property investing?
7 Replies
Adam Schumacher
from Atlanta, Georgia
posted 7 months ago
What are advantages and disadvantages of property investing in each country?
I recently moved to the US from the UK and am unsure where I should invest.
Why insights are highly appreciated.
Thank you!
Aigo Pyles
Flipper/Rehabber from Memphis, TN
replied 7 months ago
Do you plan to stay in the US for good?
Adam Schumacher
from Atlanta, Georgia
replied 7 months ago
Probably living betwee both locations
Aigo Pyles
Flipper/Rehabber from Memphis, TN
replied 7 months ago
Real estate investing is a long term investment. So ask yourself where would it me more convenient for you to invest? Is it in US or in UK? I am not that familiar with UK laws but I think the real estate laws in the US are more flexible.
All the best!
Adam Schumacher
from Atlanta, Georgia
replied 7 months ago
👍😊
Dominic Marshall
Rental Property Investor from Philadelphia, PA
replied 3 months ago
I'm a UK citizen looking at investments in both Countries. The benefit for me is that my networks and connections are deeper in the UK. So long as you have a reliable trustworthy team you can invest OOS or out of Country. It all comes down to your goals and your investing criteria.
However, the US has the 1031 exchange to defer capital gains in a like for like property "trade" meaning the opportunity for scaling is quicker. Unfortunately the UK does not having anything similar written in the tax code. Keep in mind that Biden proposed removing the 1031, (BP correct me if I am wrong).
Bill Exeter
1031 Exchange Qualified Intermediary from San Diego, CA
replied 3 months ago
Hi @Dominic Marshall ,
Investors can do a 1031 Exchange for foreign property if it is going to cause them a U.S. income tax consequence. They would of course have to pay any taxes that would otherwise be due in the foreign country, but it would defer the payment of U.S. taxes. Foreign property 1031 Exchanges require that the relinquished property and the replacement property be foreign properties, although not necessarily in the same country. You cannot 1031 Exchange out of a foreign property and into a U.S. Property.
Dominic Marshall
Rental Property Investor from Philadelphia, PA
replied 3 months ago
Originally posted by @Bill Exeter :Hi @Dominic Marshall,
Investors can do a 1031 Exchange for foreign property if it is going to cause them a U.S. income tax consequence. They would of course have to pay any taxes that would otherwise be due in the foreign country, but it would defer the payment of U.S. taxes. Foreign property 1031 Exchanges require that the relinquished property and the replacement property be foreign properties, although not necessarily in the same country. You cannot 1031 Exchange out of a foreign property and into a U.S. Property.
Wow, this is great information! Thank you for this knowledge.