We look to attract families and are therefore targeting single family occupancy dwellings rather then apartments or duplex units.
Houses are 3, 4 and 5 bedrooms (Larger when available). This ensures family occupancy, greater possibility of equity growth, higher yields, along with the added security that a family brings.
Below are some examples of ‘The Numbers’
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The first year yields will be nominally lower due to the one off purchasing costs, which are approx $700. This will reduce the actual yields in year 1 as follows: 3 BED 20.2%, 4 BED 21.7%, 5 BED 23.2%.
Dependent on your US taxable income you will be liable for US income tax at between 15and 35% currently.
Here is a basic example based on US taxable income of $100k, attracting a Tax rate of 28% (THE INCOME TAX RATES RANGE FROM 15-35%)
Examples of yields post US Tax (per property)
| Rent (pre Tax) | $9,720 | $10,872 | $12,012 | |
| 28% Tax | $2,721 | $3,044 | $3,363 | |
| NET | $6,998 | $7,827 | $8,648 | |
| *** NET YEILD (After 28% US TAX) |
15.7% | 16.83% | 17.83% |
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GUIDENCE NOTES *Prices quoted are based on a portfolio of 10 properties. **the annual deductions are based YR1 Property Tax, Insurance, tax advisors costs $300. Does not include the purchase expenses or any additional maintenance. ***based of current US tax at 28% which is based on 10 properties, tax rates range from 15% - 35% dependant on US Income. Your US tax attorney/accountant will advise you individually. Depending on your circumstances you may be required to pay a percentage of UK income tax, there is a taxation agreement between the US and the UK. We would recommend individual UK taxation advice. We have arranged a Chartered accountant who will organise a tax return for you at massively reduced rates. All costings are based on expenditure for a single property; discounts on expenditure may be available for multiples ownerships. |