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Trying to talk some sense into my fiance....
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Trying to talk some sense into my fiance. I already own a home in the US, which was $150k (less than 3x my income). She is British and wants to buy a home in SE England for about $300k (about 7x her income). She has 150k in savings, which she would invest almost completely into the property, and wants to take out a $150k loan. She currently lives rent-free with her parents.

This seems like a particularly bad idea because:

A) In general, buying a home at 7x gross income (2.5 to 3x is the max recommended rate in the US) seems pretty damn high when looking at her income alone
B) She would be completely undiversified (she has no stocks or other investments, just the cash) and all of her assets would be locked into the house
C) Two people on a combined income of about 100k should have no business owning $450k worth of house
D) The property taxes and upkeep on her place would eat her alive
E) SE UK market seems pretty overheated right now, especially with the problems that Asian and Russian investors, big drivers in this market, might face as well as the slowing global economy
F) My current job is not particularly secure and I have already warned her that I would not contribute to this investment, would not help her out if things go south, and would reconsider our potential marriage if she decides to go forward with it due to the tax implications (I am a US citizen) and the fact that I do not want to be over-leveraged.
G) She is considering looking at leasehold properties...

Wut do?
>>
rental is insane in london. it may not be a bad long term investment if you rent it out.

will probably generate upwards of $1500 a month.
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>>1037740

Yes, but she wants to live in it.
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>>1037750
>Yes, but she wants to live in it.
Thats fucking consumption.
So you basically want to own two homes, betting on history of rising prices to continue??

Implying real estate will go up further, how could times possibly get better?
Btw. what would be the Bull case on general UK real estate?
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>>1037629
Tax implications?
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>>1037797

If we got married, the house would become joint property. The tax situation with her a UK citizen and me a US citizen would become very complicated and expensive.
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>>1037837
But why? I'm both an Australian & Irish citizen with a US Greencard, married to a USC, and I file taxes... but I have no idea why you think it complicates things... keep the UK dealings in the UK, keep the US dealings in the US... declare the UK earnings in your US filing, but claim the foreign income exemption and also the UK/USA tax treaty...
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>>1037629
>would reconsider our potential marriage if she decides to go forward with it
Jesus you're a pussy
Tell her in no uncertain terms you're not marrying her if she does.
Why is your fiancée living in England anyway OP?
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>>1037872
yeah, this, it's cold but if the girl can't understand risk she's not worth keeping around
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>>1037629

the #1 reason for divorce is financial difficulties. If this woman is going to be throwing you into financial problems like huge amounts of debt, things are probably going to end very badly down the road.
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>>1037872

I used to live in the UK and met her there. I now live in the US.
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>>1037923
So you're going to marry someone who's over leveraging and lives across an ocean from you?
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>>1037926

Yes, though she has not yet committed to actually buying the place. I'm trying to convince her that it is a stupid idea.
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>>1037932
this is like three degrees of liability on your end and I don't see what you get out of it, seriously at least find a local wife to take all your money and freedom
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>>1037629
>A) In general, buying a home at 7x gross income (2.5 to 3x is the max recommended rate in the US) seems pretty damn high when looking at her income alone

it is the mortgage you'd be worried about - seems like it is 3.5 times her income and she has a 50% deposit... that is standard

>D) The property taxes and upkeep on her place would eat her alive

no they won't, property taxes are in fixed bands in the UK based on the historical value of the property - it is called council tax and even if you live in a mansion it will only be circa 2-3k... mine is around 1k for a flat in London

your GF only has a $300k budget so £206K in GBP... she won't get much more than a 1 bedroom flat for that
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>>1037750
does she currently rent or live with parents - if she currently rents and has enough to put down a 50% deposit to buy her own flat then it is a no brainer...
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>>1038003

She currently lives with her parents rent free.
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As a britfag studying in the US, I have no idea why you want to return to our gloomy island.
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>>1038012

I don't. I'm happily living in the US. Living in the UK again would be my nightmare.
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Op still hasn't explained why he's marrying someone on a different continent
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>>1038020

Then it seems like there is no negotiation to be made with your fiance.
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>>1038027
>Op still hasn't explained why he's marrying someone on a different continent

We met when I was studying. Been together nearly 11 years now. Other than this stupid real estate idea, the relationship is great.
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>>1037629
>marrying a brit slag
you're better off marrying a nigress, you retard. at least she won't dump you.
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>>1038127

Sorry, nobody could possibly be worse than a nigress.
>>
OP is back. So UK property, especially in the London metro area, is bubble-tier right?
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>>1038585
London is a world class city, like Paris, Tokyo, and NYC. It's not bubble tier so much as it is fucking expensive, and always will be.
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>>1038607

But with average house prices now at about 15x average income, how will continued increases be supported?
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>>1037629
stocks wont hedge real estate that's for sure. even cash is better. take a fixed rate loan, have cash or some asset that does not correlate with stocks or real estate. if the market goes down buy more apartments with the cash
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>>1038614
Same way they are in other world class cities: only rich people move in.

They're called "world class" because they bring in the best from over the world. The children of London households don't need to afford London home prices, London has plenty of interested parties from the top 1% of every nation on Earth willing to move in.
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>>1038607
london is different they had basically 99% of new home owners foreigners. now that they wont sell anymore to foreigners (by law) they are moving to other capitals

http://www.thisismoney.co.uk/money/mortgageshome/article-2394704/Foreign-investors-snap-70-new-build-homes-central-London.html
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>>1038627
Oh cool, I take back >>1038623 then. Looks like they finally got wise to China fucking every major city's housing market. I wish Boston would do the same, house prices would plummet in a 100 mile radius. I suppose the same goes for Toronto and Sydney but who gives a fuck about them.
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>>1037837
Then don t become joint property ? You said you would not help her and bla bla so you can refuse to own that property problem solved
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>>1037837
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>>1037837
Why the fuck do you have to marry her for?

Fucking americuck retards. If you like her, stay with her. Wanna move together? Move together. Want kids? Have kids. Want to marry? Don't fucking marry you fucking retard.
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>>1038056
You haven't married after 11 years. She lives on a different continent and wants to financially indenture you. You might even sign away your sovereignty with a marriage. Your relationship may be stable but its because youre an excellent cuck. Find a local girl to cuck you. This situation offers you nearly nothing in return for three significant risk factors.

I'll say it again, if you want to cuck yourself this hard at least do it locally without overleveraging
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>>1038738
>implying moving in and having children before marriage is a good thing.

How about you don't move in together & don't have kids so you can accumulate as much wealth as possible before deciding you're financial stable enough to have an upper-middle class life.
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