Expat Looking to have 2 Residential Properties/ 2 Retail Properties

Discussion in 'General Property Investment Discussion' started by cm777, Dec 26, 2018.

  1. cm777

    cm777 New Member

    Hi, I'm a UK expat in Asia looking to have a small portfolio of 2 residential rental properties / 2 retail rental properties...

    I understand that commercial properties currently get and will continue to get full mortgage interest relief..... Is it more tax efficient to buy 2 shop units cash, then try to get mortgages on them to buy 1 residential property ? Will I have issues getting commercial mortgages with no residency in the UK ?
    Do they look at purely rental income or is offshore employment income a factor also ?

    Another thing is, I have read that with shop units...you will get less money released on each unit vs a flat etc, the mortgage period will be shorter vs a flat, and interest higher on commercial mortgages. I'm aiming to buy one of the residential properties outright - with money released from the 2 shops....the other residential property being gifted to me.

    I also have no income in UK as yet, so maybe better to utilise my 11k+ tax-free allowance. Though, I am aware of risks of owning rental retail units as an individual vs a company....being sued by tenants.
    Last edited: Dec 26, 2018
  2. diyhelp

    diyhelp Active Member

    The UK government is highly unlikely to change the laws on interest relief for companies as they have done for buy to let personal investments. I think you will have a problem as you don’t have a UK income which is now part of the mortgage approval procedure. I have never really followed the commercial property market and I’m not sure about the shorter mortgages on retail assets. However, in the longer term I believe the UK still offers significant potential for capital growth for residential properties.

    The retail side; online business is now killing the high street and while there may be some bargains you can convert into flats, it is a risky game.
  3. cm777

    cm777 New Member

    Edit : OK, I see what you mean.

    Yes, commercial is risky in all but the sectors that online cannot provide...haircuts etc
  4. realdeals

    realdeals Active Member

    Betting shops, hairdressers, food shops and charity shops seem to be the norm on UK high streets just now. I have just heard that HMV has gone bust for the second time in 6 years. Ecommerce is biting hard!

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