The U.S. presidential election will be held in a matter of days, and UK investors with holiday homes in the USA are closely monitoring the outcome and how this will influence the U.S. property market.
With Vice President Kamala Harris and former President Donald Trump facing off on Tuesday, questions are being asked about how the election result will affect Brits who own property in the States, particularly in Florida, a historically Republican stronghold.
Alistair Brown is the CEO of ABI Group, an agency which markets and manages Florida holiday homes and investment properties in the USA and worldwide said: “The election itself will likely have minimal direct impact on UK owners of property in the States. Instead, it's the media narrative that plays a significant role. Depending on which side the media supports, it can sway potential investors or current property owners.
Florida’s political landscape remains predominantly Republican, Donald Trump has a property in Palm Beach, which tends to influence local market conditions. However, Florida has always had great tax incentives including no state income tax, which has always been a boon for property investors.
Brown adds, “In contrast, we see that it is major political events in the UK, such as the General Election and this week’s budget that have a greater impact on UK investors looking to buy in the U.S.
“At ABI Group we have seen an increase in the number of UK residents looking to buy holiday homes overseas in order to safeguard their retirement pots.”
In Thursday’s Budget, Chancellor Rachel Reeves announced an immediate increase in stamp duty on second homes. Those purchasing a second UK home, will have to pay an additional 5% on top of standard stamp duty rates. As well as this, the rates on capital gains tax have been raised immediately from 10-18% at the lower rate and 20-24% at the higher rate, making investors think twice about UK assets and look more widely.
Current low house prices in the Florida region and resorts such as Reunion resort Florida have sparked increased interest from UK investors eager to capitalise on the U.S. housing market.
With the potential for shifts in economic policy depending on the election results, UK-based property owners and investors are advised to remain vigilant. While political changes in the U.S. may not immediately impact their investment portfolios, they might influence market sentiment and future investment decisions.
In recent years Florida's property market has seen a notable dip in prices, creating opportunities for savvy investors to build their portfolios whilst the exchange rate is lucrative. Many UK residents are now considering the U.S. market as an attractive option to purchase a holiday home or investment property, attracted by favourable exchange rates, growth prospects and income tax rates.
As the election unfolds, UK investors should stay informed about both U.S. and UK economic indicators, as these will shape the investment landscape. With the right strategies and timely information, UK property owners can navigate these changes effectively.
If you are a UK buyer who would like further insights and assistance on the U.S. property market, please contact ABI Group.
