Where will you keep your rental profits?

I get asked this a lot. Should I keep my rental profits in the USA
or transfer them back home? Well, as always, this is down to your
own financial circumstances. Whether you want to rely on your new
profits in the here and now, or think of them as savings that you
can use later.

The question isn't really anything to do with cash flow. It's more
to do with the weakness of the dollar against the strength of the
pound. In essence what we're talking about is dabbling on the
FOREX (Foreign Exchange.)

Lets say the dollar remains weak against the pound for the next
five years and in that time all or most of the rental profit you
earned was left in your US account. Then something changes, the US
dollar grabs a hold and starts to climb its way back. Next thing
we know its at $1.5 to the £1. If you exchange your dollars for
pounds your profits have increased even further.

example 1: bringing profits back now. (dollar at 2 to 1)
$10,000 /2 = £5000

example 2: wait 4-5 years. (dollar at 1.5 to 1)
$10,000 /1.5 = £6,666

So, if you don't have to exchange your profit, then wait a while.


Good luck with all your investments

Ollie
ollie@usapropertyinvestor.co.uk
0845 438 0634