How foolish is this idea: buying a hometown house while living abroad
January 4, 2023 2:55 PM Subscribe
I haven't lived in my (American) hometown* in 20 years, but I know it, love it, and visit my family and friends there whenever I can. After years of daydreaming while browsing real estate websites to ogle too-expensive homes in my favorite neighborhood, a lovely, small house has come on the market there. I can afford it. Complicating detail: I currently live in the UK and may live here for some time (1-5 years at minimum, I think, maybe pursuing permanent residency in the future). Is this a stupid idea?
This house is in Little Rock, Arkansas. *It's not technically my hometown, but it's where I went to public school (busing) and university. It's near enough of a drive to where I grew up that having a place there means I'd be able to visit and help my aging parents at the drop of a hat, something I haven't been able to do for any of those 20 years and something that I've been thnking about a lot in the last couple years. I've often mused that I'd love to have a home base there, maybe even live to there again... part time. I don't know how I feel about permanently anchoring myself in one place and one place only. Those 20 years have made it feel like that's hard to achieve in the modern economy. In that time I've had something like 17 addresses in 7 cities across 3 countries. For the last couple years, I've been living and working in the UK on a skilled worker visa.
When this listing popped up, I was a bit stunned. It's small by local standards, but I'm used to very small. It's in good shape, has nice bones, is just on the edge of my favorite part of town. It's so on that edge that I've never in my life noticed it, but the neighborhood has views of the state capitol, the river, is on a hill, is lushly wooded, and is easy walking distance to some cherished spots... it hits a lot of buttons. My parents gleefully accepted my request for them to mask up and go do a walkthrough for me. They've just sent me some pictures from their time inside, and now I am really wondering about this!
To get this out of the way, there are things I've missed about the city since the day I moved away; there are things I've not missed a drop since the day I moved away. I know the city extremely well and don't need advice on it itself. It's a small town, but it's a capital city that's a wonderful magnet of culture in that part of the south. I've lived in eye-wateringly expensive megacities since I left. I value both ends of the spectrum, and neither end gets off without criticism. I've made a career that allows me to work from anywhere where I have great internet and access to an airport. Check and check.
What I'm wondering is, is this a stupid idea? I have the down payment in savings. The estimated monthly payment is reasonable. I can pay it and my current London flat rent with enough wiggle room left to pay for insurance etc. Would I buy it and move in? Would I buy it and rent it out? I dunno, both are options. I have a tiny house's worth of my personal belongings that's been gathering dust for the last two years in a California storage unit and incurring a $375 monthly fee for the privilege. It would be wonderful to have the opportunity have a home in my heart's original home. But do normal mortal non-rich people do this sort of thing and successfully pull it off? Has anyone out there done this, bought an investment home from abroad, and lived to tell the tale? If so, what are your lessons?
I am genuinely all ears. I'm happy to hear your wisdom, caution, lessons, resources, experiences, etc. Sock it to me.
Y'all always have great input. Many thanks in advance, wise folks.
This house is in Little Rock, Arkansas. *It's not technically my hometown, but it's where I went to public school (busing) and university. It's near enough of a drive to where I grew up that having a place there means I'd be able to visit and help my aging parents at the drop of a hat, something I haven't been able to do for any of those 20 years and something that I've been thnking about a lot in the last couple years. I've often mused that I'd love to have a home base there, maybe even live to there again... part time. I don't know how I feel about permanently anchoring myself in one place and one place only. Those 20 years have made it feel like that's hard to achieve in the modern economy. In that time I've had something like 17 addresses in 7 cities across 3 countries. For the last couple years, I've been living and working in the UK on a skilled worker visa.
When this listing popped up, I was a bit stunned. It's small by local standards, but I'm used to very small. It's in good shape, has nice bones, is just on the edge of my favorite part of town. It's so on that edge that I've never in my life noticed it, but the neighborhood has views of the state capitol, the river, is on a hill, is lushly wooded, and is easy walking distance to some cherished spots... it hits a lot of buttons. My parents gleefully accepted my request for them to mask up and go do a walkthrough for me. They've just sent me some pictures from their time inside, and now I am really wondering about this!
To get this out of the way, there are things I've missed about the city since the day I moved away; there are things I've not missed a drop since the day I moved away. I know the city extremely well and don't need advice on it itself. It's a small town, but it's a capital city that's a wonderful magnet of culture in that part of the south. I've lived in eye-wateringly expensive megacities since I left. I value both ends of the spectrum, and neither end gets off without criticism. I've made a career that allows me to work from anywhere where I have great internet and access to an airport. Check and check.
What I'm wondering is, is this a stupid idea? I have the down payment in savings. The estimated monthly payment is reasonable. I can pay it and my current London flat rent with enough wiggle room left to pay for insurance etc. Would I buy it and move in? Would I buy it and rent it out? I dunno, both are options. I have a tiny house's worth of my personal belongings that's been gathering dust for the last two years in a California storage unit and incurring a $375 monthly fee for the privilege. It would be wonderful to have the opportunity have a home in my heart's original home. But do normal mortal non-rich people do this sort of thing and successfully pull it off? Has anyone out there done this, bought an investment home from abroad, and lived to tell the tale? If so, what are your lessons?
I am genuinely all ears. I'm happy to hear your wisdom, caution, lessons, resources, experiences, etc. Sock it to me.
Y'all always have great input. Many thanks in advance, wise folks.
This is an exciting opportunity!
Unoccupied houses attract problems, and buying with the expectation of staying there on short notice if a parent fell ill is a sticky wicket. Do you have extended family or friends who could rent it (furnished, to get rid of the storage unit) -- anyone who could keep a guest bedroom available for your use?
posted by Iris Gambol at 3:08 PM on January 4, 2023 [6 favorites]
Unoccupied houses attract problems, and buying with the expectation of staying there on short notice if a parent fell ill is a sticky wicket. Do you have extended family or friends who could rent it (furnished, to get rid of the storage unit) -- anyone who could keep a guest bedroom available for your use?
posted by Iris Gambol at 3:08 PM on January 4, 2023 [6 favorites]
If it's anything like the houses I have been trying to buy over the last year-plus, it will probably sell quickly (even now, as things are supposedly slowing down), so you may have to decide very soon. I would do it (especially if you think it's a desirable area to rent to someone, and you think that it won't be hard to find a tenant). But I *do* want to settle down. I'm not convinced that houses are likely to get much less expensive, but some people are predicting a bigger correction in prices later in the year.
posted by pinochiette at 3:09 PM on January 4, 2023 [2 favorites]
posted by pinochiette at 3:09 PM on January 4, 2023 [2 favorites]
I lived out of the US for a few years while my (now ex-) husband and I still owned a house in the US. We had it set up for a few years before that as a year-round rental (we had already moved away from that town), but that meant we couldn't ever use it. Then we had it set up as a vacation rental, which meant we had to furnish it, which was a big expense, but at least then it was available to us with some notice. It was easier because we did hire a company to manage the rental.
You'll want to figure out which option you might pursue, because it's really not good for a house to sit empty. At the very least, you'd need to make sure things happen like basic yard and house maintenance. But sitting empty isn't a good long term plan. If you have a full time tenant, you won't be able to go on short notice, so consider that as well.
Iris Gambol's idea of setting it up so you rent the house but have a room is a good one, if you can find the right tenant.
A few other things to consider: mortgage rates are pretty high right now. I'm guessing that you're seeing this house now because the real estate markets was super hot during most of the pandemic but crashed this fall as mortgage rates rose, so things are staying on the market a bit longer. It might be that more interesting things come available this year if you wait.
I think it's also important to figure out how much of your house-browsing habits are about leisure and fantasy, rather than something you actually want to do. Sometimes browsing house listings is a lot more fun than actually owning a home, especially one you can't live in.
Yes, mere mortals do things like this. But it's important to consider what you won't be able to do if you buy this house. Even if you can afford it, you will have a big chunk of money going to housing, and that might limit your other opportunities.
posted by bluedaisy at 3:17 PM on January 4, 2023 [7 favorites]
You'll want to figure out which option you might pursue, because it's really not good for a house to sit empty. At the very least, you'd need to make sure things happen like basic yard and house maintenance. But sitting empty isn't a good long term plan. If you have a full time tenant, you won't be able to go on short notice, so consider that as well.
Iris Gambol's idea of setting it up so you rent the house but have a room is a good one, if you can find the right tenant.
A few other things to consider: mortgage rates are pretty high right now. I'm guessing that you're seeing this house now because the real estate markets was super hot during most of the pandemic but crashed this fall as mortgage rates rose, so things are staying on the market a bit longer. It might be that more interesting things come available this year if you wait.
I think it's also important to figure out how much of your house-browsing habits are about leisure and fantasy, rather than something you actually want to do. Sometimes browsing house listings is a lot more fun than actually owning a home, especially one you can't live in.
Yes, mere mortals do things like this. But it's important to consider what you won't be able to do if you buy this house. Even if you can afford it, you will have a big chunk of money going to housing, and that might limit your other opportunities.
posted by bluedaisy at 3:17 PM on January 4, 2023 [7 favorites]
A complicating factor may be the currency risk, assuming the mortgage needs to be in USD and you are paid in GBP. Not impossible but many lenders will look for a low Loan-to-Value Ratio i.e. a larger deposit.
posted by Lanark at 3:47 PM on January 4, 2023 [1 favorite]
posted by Lanark at 3:47 PM on January 4, 2023 [1 favorite]
I think you're really romanticizing everything. It's not bad but a sign to slow down unless you have the funds to buy this place in cash while maintaining your current lifestyle in the UK. I get the urge: I love Arkansas, too, and this listing seems too good to be true. So maybe it is? Have you ever bought a house in the US before? It's extremely complicated and expensive; being there in person for a few weeks would be ideal, although it's cool you have your parents to help. Why not move back to the US right now if you're so ready for it? It seems like your life in the UK is very cool but not super stable yet so I can see that extra charm of stability abroad. A few years ago I moved back to my hometown after 20 years away: part of me wishes I had bought ten years ago when things were half as expensive but I wasn't ready yet. Living here is very different from visiting, not bad but different. I actually have no regrets about not having bought earlier because home ownership is a burden as much as it is a blessing, and when done from afar it's truly more complicated. Long-term rentals can be easy or tricky; short-term rentals can be lucrative or a nightmare. If you really love this place -- that's cool! -- get on a plane this weekend and come visit. If you aren't ready or willing to do that, no problem but that may be a sign to continue exploring options but not jump just yet.
posted by smorgasbord at 4:30 PM on January 4, 2023 [2 favorites]
posted by smorgasbord at 4:30 PM on January 4, 2023 [2 favorites]
2) Will this purchase affect potential UK residency? I would contact a qualified UK legal professional on that point if it's important to you. Visa/immigration laws are not for the faint of heart.
This, and - I'd suggest taking a look at how much this would impact the taxes you pay both in the US and in the UK, especially if you're planning on splitting time between the two places every year. I'm hand-waving a bit when I say this, but if the time split is about 50-50 the taxes you pay may be determined by where you own the most property.
posted by rhythm and booze at 5:16 PM on January 4, 2023
This, and - I'd suggest taking a look at how much this would impact the taxes you pay both in the US and in the UK, especially if you're planning on splitting time between the two places every year. I'm hand-waving a bit when I say this, but if the time split is about 50-50 the taxes you pay may be determined by where you own the most property.
posted by rhythm and booze at 5:16 PM on January 4, 2023
I know people who have properties that sit empty for months at a time. Things that can come up include burst pipes, toilet leaks, sprinkler leaks, clogged gutters, city fines for an overgrown yard, snow-shovelling, and vandals/squatters. (Do they have nice condos in LR? They are much easier to leave empty than houses.)
This might be doable as long as you have someone to handle the emergencies. This can be really good friends who will do you a favor, or a professional you have a good relationship with.
Be sure to figure all the home ownership costs:
Fixed: mortgage, property taxes, insurance,
Variable: utilities (water, electricity, heat, and internet for remote cameras, security alarm system), lawn care, snow care, gutter care
Of course, you would want to wire the entire house up with cameras inside and out .
posted by dum spiro spero at 5:35 PM on January 4, 2023 [2 favorites]
This might be doable as long as you have someone to handle the emergencies. This can be really good friends who will do you a favor, or a professional you have a good relationship with.
Be sure to figure all the home ownership costs:
Fixed: mortgage, property taxes, insurance,
Variable: utilities (water, electricity, heat, and internet for remote cameras, security alarm system), lawn care, snow care, gutter care
Of course, you would want to wire the entire house up with cameras inside and out .
posted by dum spiro spero at 5:35 PM on January 4, 2023 [2 favorites]
Do it! Try and ensure that if you rent the house out, it can cover its own costs. Crunch the figures on how renting will affect your taxes so you know how you stand financially, make sure you have an emergency buffer of cash for when things go wrong because they will, like any house and then just do it.
Plan on hanging onto it for years because the next few will be unpredictable housing and economy wise but if you’re set to weather that and have no plans to buy and then sell immediately hopefully you won’t be affected anyway.
People own investment properties/holiday homes and international homes all the time. Get a good property manager, stay on top of it and you’ll be fine.
posted by Jubey at 5:51 PM on January 4, 2023 [2 favorites]
Plan on hanging onto it for years because the next few will be unpredictable housing and economy wise but if you’re set to weather that and have no plans to buy and then sell immediately hopefully you won’t be affected anyway.
People own investment properties/holiday homes and international homes all the time. Get a good property manager, stay on top of it and you’ll be fine.
posted by Jubey at 5:51 PM on January 4, 2023 [2 favorites]
Honestly, it sounds like a pretty good idea. My $0.02: Don't leave it unoccupied; rent it out, it will offer a good additional income stream. Of course this means you couldn't just move back anytime you wanted.
What's not clear to me is whether you are planning to go back to look at it in person first? Sorry if that's a really obvious question! Definitely look around it in person, do your due diligence in terms of finding out everything there is to know about its structural integrity, find out why exactly it is such a steal... But if you are satisfied, then it seems like a perfectly good idea to own a piece of property near where your parents live.
Source: I live abroad and inherited a piece of property in my hometown. It generates rent, and largely looks after itself.
posted by unicorn chaser at 6:28 PM on January 4, 2023 [1 favorite]
What's not clear to me is whether you are planning to go back to look at it in person first? Sorry if that's a really obvious question! Definitely look around it in person, do your due diligence in terms of finding out everything there is to know about its structural integrity, find out why exactly it is such a steal... But if you are satisfied, then it seems like a perfectly good idea to own a piece of property near where your parents live.
Source: I live abroad and inherited a piece of property in my hometown. It generates rent, and largely looks after itself.
posted by unicorn chaser at 6:28 PM on January 4, 2023 [1 favorite]
Don't do this unless someone can live in the house and deal with routine maintenance. My family has done this in reverse (living in the US, property is overseas), couldn't get there for a couple years due to COVID, and just went back to find a rat infestation upstairs, massive water damage from a leaking roof, and an attempted burglary (burglars got in, but we think they were foiled by the rats). And this was with a long-term downstairs tenant who was able to attend to the yard and general other maintenance, he just (understandably) didn't access the family apartment upstairs.
I'd be able to visit and help my aging parents at the drop of a hat, something I haven't been able to do for any of those 20 years and something that I've been thnking about a lot in the last couple years
This is a fair point, but not a rational reason to buy a house in a city where neither you nor your parents live, when you could spend that money (probably a lot less money) on a nearby hotel room or Airbnb if/when you need it.
posted by basalganglia at 6:31 PM on January 4, 2023 [2 favorites]
I'd be able to visit and help my aging parents at the drop of a hat, something I haven't been able to do for any of those 20 years and something that I've been thnking about a lot in the last couple years
This is a fair point, but not a rational reason to buy a house in a city where neither you nor your parents live, when you could spend that money (probably a lot less money) on a nearby hotel room or Airbnb if/when you need it.
posted by basalganglia at 6:31 PM on January 4, 2023 [2 favorites]
This is not a good idea. The advantages you lay out are that you could visit your parents at the drop of a hat and that the idea of having a physical tie in a place that you love appeals to you. The first would seem to rule out any idea of renting it out - it would no longer be a place you could stay sporadically and on short notice. You're probably also unlikely to solve your storage problem while renting - of course it's possible you could rent it out furnished, but most tenants want to bring their own things. You could achieve your goal by furnishing it with your belongings and leaving it empty, but this is a VERY expensive and stressful way to solve a problem that it seems like you could just resolve by staying in a hotel when you want to visit. Others are totally right to point out that vacant properties have all kinds of problems, from being unable to qualify for a mortgage or insurance to unmonitored damage from water or pests to becoming a target of crime.
As for your more abstract goal of having a source of connection and stability in a place you call home - I get it, but it's worth examining that this desire seemed to only become serious after you happened upon a property that seemed appealing - it's truly so easy to latch on to something like this and start envisioning different futures and really over-romanticizing how the actual situation would play out. At the very least, I think if you want to purchase real estate out of a deep-seated desire for a permanent sense of place, you should avoid pulling the trigger on the first house to tug on your heartstrings and instead take a more considered and unhurried approach. You probably want a place with low expected maintenance (new roof and HVAC and an easy-to-maintain yard and durable floors and such), a place that is appealing to renters as well as yourself, a place that is likely to fit your potential future needs as well as current situation (especially since you aren't planning to live there in the next few years, if at all). Let this plan sit with you for six months, keep an eye on Zillow or whatever so you have a good basis for comparison, do some research on local regulations and taxes and property management companies, and then start the search in earnest. There will always be more houses.
For what it's worth, I work with a bunch of expats who move around the world every couple years and lots of them have homes in the United States - that part is quite doable. You rent it out and pay a property management company around 10% to take mediocre (probably) care of the place and hope the financials pencil out. I only know one family out of dozens who have actually managed to move back into their home during a stint back in the U.S., and they had been planning it for years and had the place empty and under renovations for 8-10 months before moving back in. I also only know one family (again out of dozens) that keeps their place vacant rather than renting it out, and that's because he (the overseas employee) is 100% certain that he will only be overseas for three years before returning permanently to his forever home in the U.S., AND his wife is living in the house about a third of the time while he's abroad.
posted by exutima at 6:54 PM on January 4, 2023
As for your more abstract goal of having a source of connection and stability in a place you call home - I get it, but it's worth examining that this desire seemed to only become serious after you happened upon a property that seemed appealing - it's truly so easy to latch on to something like this and start envisioning different futures and really over-romanticizing how the actual situation would play out. At the very least, I think if you want to purchase real estate out of a deep-seated desire for a permanent sense of place, you should avoid pulling the trigger on the first house to tug on your heartstrings and instead take a more considered and unhurried approach. You probably want a place with low expected maintenance (new roof and HVAC and an easy-to-maintain yard and durable floors and such), a place that is appealing to renters as well as yourself, a place that is likely to fit your potential future needs as well as current situation (especially since you aren't planning to live there in the next few years, if at all). Let this plan sit with you for six months, keep an eye on Zillow or whatever so you have a good basis for comparison, do some research on local regulations and taxes and property management companies, and then start the search in earnest. There will always be more houses.
For what it's worth, I work with a bunch of expats who move around the world every couple years and lots of them have homes in the United States - that part is quite doable. You rent it out and pay a property management company around 10% to take mediocre (probably) care of the place and hope the financials pencil out. I only know one family out of dozens who have actually managed to move back into their home during a stint back in the U.S., and they had been planning it for years and had the place empty and under renovations for 8-10 months before moving back in. I also only know one family (again out of dozens) that keeps their place vacant rather than renting it out, and that's because he (the overseas employee) is 100% certain that he will only be overseas for three years before returning permanently to his forever home in the U.S., AND his wife is living in the house about a third of the time while he's abroad.
posted by exutima at 6:54 PM on January 4, 2023
If it is much cheaper than other comprable houses then there is probably something wrong with it that would make it fail a mortgage lender's inspection.
posted by Jacqueline at 7:48 PM on January 4, 2023 [1 favorite]
posted by Jacqueline at 7:48 PM on January 4, 2023 [1 favorite]
Do you have connections in the city such that you could rent the place out to a family member, friend or trusted friend of a friend? We owned a home cross-country that we rented to a family member. In exchange for a "family discount" they took care of all of the property management stuff (we still paid for major repairs etc but they took care of it and found repair folks when needed. This also meant that while the house was tired and a little run down by the time they moved out, at least it wasn't trashed or needed unexpected repairs due to negligence.
posted by metahawk at 8:02 PM on January 4, 2023 [3 favorites]
posted by metahawk at 8:02 PM on January 4, 2023 [3 favorites]
We did this and it’s rented now and brings me such joy knowing my future retirement home is secured in my favorite place of the world till I can get back there.
Do it. Don’t think there aren’t a bunch of hoops to jump through (securing mortgage when non resident, setting up with rental agent etc) but hey man gotta live life or what’s it for.
posted by St. Peepsburg at 8:42 PM on January 4, 2023 [5 favorites]
Do it. Don’t think there aren’t a bunch of hoops to jump through (securing mortgage when non resident, setting up with rental agent etc) but hey man gotta live life or what’s it for.
posted by St. Peepsburg at 8:42 PM on January 4, 2023 [5 favorites]
You need to find a reputable real estate management company that will handle maintenance and rent it out while you are absent. You also need to consider the tax implications, as someone will have to pay the property taxes, any income from renting it out, while deducting the expenses. So you basically also need to hire an accountant, unless the real-estate management want to do that for you too for a bigger cut.
posted by kschang at 9:20 PM on January 4, 2023
posted by kschang at 9:20 PM on January 4, 2023
My friend’s parents had a situation sort of like what Iris Gambol describes that worked out well—my friend’s next door neighbor moved overseas and rented out his house to my friend’s retired but active parents below market rate with the stipulation that one bedroom was his and he’d stay there when in the States. They were great tenants because they were responsible people who had owned homes before, and were happy to be able to live near their kids & grandkids so affordably. If you can find good tenants like that it would make it easier.
posted by needs more cowbell at 11:25 PM on January 4, 2023
posted by needs more cowbell at 11:25 PM on January 4, 2023
Response by poster: Thanks y'all, this is excellent discussion and please keep it coming. I couldn't not chime in after reading "burglars got in, but we think they were foiled by the rats"—sorry to hear aout your experience, basalganglia, but also thank you for that choice sentence! I want that made into a plaque.
FYI: I'm meeting with a tax person in two weeks for the usual purposes and will be asking about the implications for various scenarios—whther I rent it out fully, rent it out but reserve a room for myself, rent it out cheaply to an artist friend who can handle some of the groundskeeping/maintenance, and so on. The place is a steal because it's so small. It's much, much smaller than the local average, so the price per square foot is equivalent to everywhere else. It's a teensy little postage stamp that reminds me of the house I lived in in San Francisco and (tearfully) had to leave behind. I'm familiar with the labor of a home, and the implications of "needs work but move in ready." I'm going to start the conversation with the real estate agent and see where we're at in two weeks. This process is so new to me that I might as well be an astronaut going on his first trip to the moon, but I appreciate the nudge of confidence to at least explore it.
Again, loads of love to you all for helping me think through this idea on a very compressed schedule.
posted by late afternoon dreaming hotel at 2:55 AM on January 5, 2023 [2 favorites]
FYI: I'm meeting with a tax person in two weeks for the usual purposes and will be asking about the implications for various scenarios—whther I rent it out fully, rent it out but reserve a room for myself, rent it out cheaply to an artist friend who can handle some of the groundskeeping/maintenance, and so on. The place is a steal because it's so small. It's much, much smaller than the local average, so the price per square foot is equivalent to everywhere else. It's a teensy little postage stamp that reminds me of the house I lived in in San Francisco and (tearfully) had to leave behind. I'm familiar with the labor of a home, and the implications of "needs work but move in ready." I'm going to start the conversation with the real estate agent and see where we're at in two weeks. This process is so new to me that I might as well be an astronaut going on his first trip to the moon, but I appreciate the nudge of confidence to at least explore it.
Again, loads of love to you all for helping me think through this idea on a very compressed schedule.
posted by late afternoon dreaming hotel at 2:55 AM on January 5, 2023 [2 favorites]
We have done/do this and it’s been a lot of headaches unless 100 percent rented out with a management company. We just had a pipe burst and the floor has been flooded a week. Part of the roof blew off our last house… trying to deal with these things when you’re far away is hard. Also, it’s a lot of work to open up and close up a house. Mail builds up. People next door put in planning permissions and you aren’t there to know and object. Mail builds up if you don’t figure that out. Sometimes tenants stop paying rent and you can’t get them out and they destroy your house and then complain it’s not habitable. We have been on the line for 1000’s more than once and this time I ask myself, why did we not just improve where we live and then sell when it’s time to go back.
posted by catspajammies at 4:07 AM on January 5, 2023
posted by catspajammies at 4:07 AM on January 5, 2023
As long as you have a plan that doesn't leave it unoccupied, I think this is a fine idea. It clearly is making your parents happy, and maybe I am reading too much into your question but it sounds like you are kind of hankering for a home base and this could be that base, even if there are still a few years before you move back full time.
I think people have outlined all of the ways to keep it occupied, either using a property management company or renting to family/friend who will do those functions in exchange for cheap rent. Leaving a house unoccupied is risky, like if the pipes froze or tweakers drop by and strip out all the copper. (As someone noted, condos are usually set up much better for leaving unattended and might be something you want to consider.)
I will say that in my limited experience (we once rented out our house, reserving a small portion of the house for our use while in town), renting out your house is stressful. We had great, amazing tenants and there was still wear and tear and things that had to be dealt with from long distance, which is a pain.
I've also house-sat for people before, who were going to be gone for extended periods. When I did it, it was either free rent (when combined with pet care) or very, very low rent. The basic deal was free or almost free housing, in exchange for caring for their home as well as they would, and using just the parts of the house that were agreed upon. If you find the right person, that can work great, but then you aren't earning the money you would be renting it at market rate. (I can't remember who it is, but there are a couple of users here who have commented that they do long-term housesitting in various places -- if this ends up being the option you are looking for, asking a question about that might get some very informed input on how best to do that.)
1) Will this be your primary residence (according to mortgage lenders)? If not, mortgages will be harder to deal with and more expensive
I was going to flag this as a question. Your typical house mortgage will have a stipulation that you have to use the house as your primary residence for a period, often 2 years; mortgages for properties that will be rentals from day one are often more expensive because, to the bank, those are riskier. So you would need to finesse this one way or another, either by ignoring that requirement and counting on not getting caught, or being open and possibly paying a higher lending cost.
posted by Dip Flash at 6:56 AM on January 5, 2023
I think people have outlined all of the ways to keep it occupied, either using a property management company or renting to family/friend who will do those functions in exchange for cheap rent. Leaving a house unoccupied is risky, like if the pipes froze or tweakers drop by and strip out all the copper. (As someone noted, condos are usually set up much better for leaving unattended and might be something you want to consider.)
I will say that in my limited experience (we once rented out our house, reserving a small portion of the house for our use while in town), renting out your house is stressful. We had great, amazing tenants and there was still wear and tear and things that had to be dealt with from long distance, which is a pain.
I've also house-sat for people before, who were going to be gone for extended periods. When I did it, it was either free rent (when combined with pet care) or very, very low rent. The basic deal was free or almost free housing, in exchange for caring for their home as well as they would, and using just the parts of the house that were agreed upon. If you find the right person, that can work great, but then you aren't earning the money you would be renting it at market rate. (I can't remember who it is, but there are a couple of users here who have commented that they do long-term housesitting in various places -- if this ends up being the option you are looking for, asking a question about that might get some very informed input on how best to do that.)
1) Will this be your primary residence (according to mortgage lenders)? If not, mortgages will be harder to deal with and more expensive
I was going to flag this as a question. Your typical house mortgage will have a stipulation that you have to use the house as your primary residence for a period, often 2 years; mortgages for properties that will be rentals from day one are often more expensive because, to the bank, those are riskier. So you would need to finesse this one way or another, either by ignoring that requirement and counting on not getting caught, or being open and possibly paying a higher lending cost.
posted by Dip Flash at 6:56 AM on January 5, 2023
Honestly? I hate to say so because you sound very enchanted by this house, but it sounds to me like a massive albatross based on a potentially worthy but as-yet-underconsidered fantasy.
posted by dusty potato at 11:00 AM on January 5, 2023 [1 favorite]
posted by dusty potato at 11:00 AM on January 5, 2023 [1 favorite]
It sounds like you're looking into this, but yeah, TAXES. The UK-US Tax Treaty is in no way simple, and as has been suggested upthread, owning property affects not just your residency but also your domicile (different things) for tax purposes. Don't buy until you know more!
posted by atlantica at 12:35 PM on January 5, 2023
posted by atlantica at 12:35 PM on January 5, 2023
In my earlier comment, I said I did this before, but then I remembered I have done this twice, and the second time, I did not have a property manager. Sheesh. The more recent time, my family moved away, overseas, for about ten months, and rented our house to a family that was moving to the US temporarily. We had a friend, a local contractor, who we had talked to about being available to respond to any short term emergencies (like a burst water pipe, that sort of thing), but fortunately we didn't need to call him.
We did have a case where the oven stopped working. The tenants offered to find a replacement that we'd pay for, but I didn't want to do that, and it was a big pain shopping for an appliance from overseas. If I had been living in the house, we probably would have managed without an oven (and just the stove top working) for a week or two or a month while we found a good replacement option. Because I was the landlord, I felt like I had to replace it right away, and then pay for delivery, installation, etc. It was a bit of a hassle!
I'm now the only homeowner, post-divorce, and owning a home, especially an older one, can be a lot of work, and pretty overwhelming at times. At this point, I have a plumber, I have an electrician, and I have a few other repair folks I have worked with, but there's a lot to learn and know about owning a home. And, having said all this, it's a lot easier to be a homeowner living in my home than to be a landlord.
I think you are walking down a path that feels good, but if you want to move to Little Rock, you can do that and then buy a house. I don't know if you have ever house shopped in person, but it's very different to visit houses in person versus what you see listed, even if someone else goes by. This is a really big decision, and I think it would be good to think about deciding to move to Little Rock first, and then deciding if it feels right and you want to buy a house after that.
posted by bluedaisy at 4:09 PM on January 5, 2023 [2 favorites]
We did have a case where the oven stopped working. The tenants offered to find a replacement that we'd pay for, but I didn't want to do that, and it was a big pain shopping for an appliance from overseas. If I had been living in the house, we probably would have managed without an oven (and just the stove top working) for a week or two or a month while we found a good replacement option. Because I was the landlord, I felt like I had to replace it right away, and then pay for delivery, installation, etc. It was a bit of a hassle!
I'm now the only homeowner, post-divorce, and owning a home, especially an older one, can be a lot of work, and pretty overwhelming at times. At this point, I have a plumber, I have an electrician, and I have a few other repair folks I have worked with, but there's a lot to learn and know about owning a home. And, having said all this, it's a lot easier to be a homeowner living in my home than to be a landlord.
I think you are walking down a path that feels good, but if you want to move to Little Rock, you can do that and then buy a house. I don't know if you have ever house shopped in person, but it's very different to visit houses in person versus what you see listed, even if someone else goes by. This is a really big decision, and I think it would be good to think about deciding to move to Little Rock first, and then deciding if it feels right and you want to buy a house after that.
posted by bluedaisy at 4:09 PM on January 5, 2023 [2 favorites]
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But, that's a big purchase and I am not in your situation and maybe someone who has been in a similar situation can give better advice. I hope it works out for you either way.
posted by VyanSelei at 3:07 PM on January 4, 2023 [7 favorites]