I live and owrk in England, and I want to buy a house in Las Vegas, to
rent out for a second source of income.  I am choosing Vegas because I
want to move there as well, bit not for a few years. Vegas propoerty
is forecast to rise in value dramatically, so there is logic in this.

What I expect to find hard (have not started looking yet) is to get a
mortgage:

1) I am not a property owner
2) I earn £20K (around $30K per annum
3) Am an English citizen, not a US citizen.

Not even sure whcih side of th eAtlantic to go to for a mortgage - UK
or USA.

Please can someone give me some guidance here, recommend resources,
mortgage types and btrokers and related points I need to consider.

Thanks in advance.

Scott

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Request for Question Clarification by leli-ga on 29 Apr 2003 01:29 PDT

Hello

Because Las Vegas is not a typical choice for British buyers of
overseas property, you will not be able to get a sterling-linked
mortgage protecting you from exchange rate fluctuations. This kind of
mortgage has recently been introduced for buying Florida properties,
but it is not a possibility for anywhere else in the US and you would
need a mortgage linked to the dollar.

In looking into this, I have found one company's name coming up
several times as the one to contact if you are a UK resident wanting
help with buying in the US or other less obvious 'second home' areas.
They have specialised in this since 1994 and have contacts with
lenders, lawyers etc. as well as experience in the field. If you think
information about this company would be a suitable answer to your
question, please let us know.

Thanks - Leli

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Clarification of Question by allwehereisradioga-ga on 29 Apr 2003 07:31 PDT

Contact names, companies and mortgage arrangers / brokers / providers
that can work in these fields would be a suitable answer to the
question, but ideally i am looking for advice as well.

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Request for Question Clarification by leli-ga on 29 Apr 2003 08:43 PDT

Thanks for clarifying.
I hope someone will be able to offer you advice and/or US contacts as
I am fairly sure there is only one UK company which specialises in
helping prospective British buyers of US property outside Florida.
Good luck with your plans.

Leli

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Clarification of Question by allwehereisradioga-ga on 29 Apr 2003 09:34 PDT

leli-ga,

If you could tell me the name of the company, then I can make some phonecalls.

Thanks in advance,

Scott Whitehead

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Request for Question Clarification by leli-ga on 30 Apr 2003 22:56 PDT

Hi again

Apologies for not getting back to you sooner.

I've put your 'answer' in the comments section as the company's
requirements make me unsure whether they will be entirely suitable for
you.

Leli

This is really an answer. i just do not know how to get into the
answer comment.
First your premise is wrong. Most companies banks use the double
sometimes tripple rule of thumb for a mortgage. So at best the maximum
mortgage you can get is $90,000. For banks not to ask too many
questions, you need to put down 20-50% (So we are talking approx
$20,000) to so you will have an $70,000 15/30 year mortgage -
depending on interest rates you are looking at $400 to $ a month. Now
you want to be a landlord, you will be responsible for the water bill
and ofcourse the property Taxes that is another $100-$200 a month.
Will UK
VAT give you a Tax allowance, for that NO! - can you file US Taxes if
you are not resident and you actually have no income (for the month
that you are not renting) NO. So what actually are you doing. You are
just paying big bucks for someone else to live comforatbly! assuming
you can find a rundown 2 bedroom 50 miles from Las Vagas.
This will not be extra income for you. Unless you just have old money
you want to hide. Pay for the property cash, and get it back through
renting etc.
People who rent houses, buy a lot of them or an apartment building, or
they failed to sell their single home. Most write an additional check
every month to make up the mortgage difference, because it is usually
hard to rent for the value of the mortgage plus taxes. Ofcourse in New
York and New Jersey You can rent a house for $5-10,000 a month. But
then it is a HOUSE.
My advice- If you love Vegas that much, come here first, find a job
and work you way out of the rental apartment, by saving or by playing
a sure fire JackPort. at $30,000 a year in Vergas and Living in
England my goodness. You might not even be able to afford a stamp to
bill the tenants. If you have old money then my concerns are mute. If
you have a large down payment there are several Bankx including
offshore Banks that can give you the money. Consult with the fox at
http://www.taxhavenco.com about offshore banks. Good luck

I'm really not so sure now about the company I mentioned as they state
that the minimum mortgage available for the USA is £50,000 which may
not be suitable, given your income and the fact that you will need
housing in the UK too.

Anyway, in case they are any use to you, here they are:

Conti Financial Services (Overseas Mortgage Specialists). 
http://www.mortgagesoverseas.com/

They are members of FOPDAC, the Federation of Overseas Property
Developers, Agents and Consultants at:
Lacey House, St Clare Business Park
Holly Road, Hampton Hill, Middlesex, TW12 1QQ
Tel: 0208 941 5588
Fax: 0208 941 0202
Email: info@fopdac.com
http://www.fopdac.com/index1.htm

Make sure you read FOPDAC's article on exchange rates (listed under
press releases 2001)

One of the various articles in the financial and travel press which
mentions Conti is this from the Money Guardian:

"If you want to buy in a location where UK lenders are thin on the
ground it is worth contacting Brighton-based Conti Financial
Services..."
How to buy a place in the sun
Margaret Hughes
Saturday April 13, 2002
The Guardian 
http://money.guardian.co.uk/homebuying/story/0,1456,683452,00.html

You will also need to consider the tax situation:

"Tax implications:
Are there tax implications for my second home?
Yes. If you rent out your property abroad income will have to be
declared to the British taxman. Check out the tax laws of the country
you're buying in. There may be implications if you rent or sell the
house. Many countries have reciprocal tax agreements with the UK so
that you don't end up paying tax twice."
How to buy a Home Abroad
This is Money
http://www.thisismoney.com/undated/mh11173.html

Good luck with your plans. Hope you can sort something out.

Regards - Leli