UK Property Investment in USA: Complete Payment Guide

Last updated: November 2024

For UK investors expanding their property portfolios into the US market, international payment solutions can make or break the economics of a deal. This comprehensive guide covers everything from initial deposits to completion payments, currency risk management, and the regulatory landscape.

Executive Summary

Key takeaways for UK property investors:

• US property transactions require multiple staged payments, each exposing you to currency risk
• Traditional banks can cost 3-4x more than specialist providers for large transfers
• FIRPTA withholding rules affect all foreign property purchases
• Forward contracts can lock in exchange rates for staged payments
• Proper planning can save £3,000+ on a £250,000 property purchase

Understanding US Property Purchase Payment Structure

Initial Earnest Money Deposit

Amount: Typically 1-3% of purchase price

Timing: Within 24-48 hours of offer acceptance

Currency considerations: Small amounts, but timing matters for rate trends

Due Diligence Deposit

Amount: Additional 2-5% during inspection period

Timing: 7-14 days after initial deposit

Currency considerations: Moderate exposure, consider short-term rate protection

Down Payment & Completion

Amount: 15-25% of purchase price (varies by loan type)

Timing: At closing

Currency considerations: Highest exposure - forward contracts recommended

Currency Risk Management Strategies

The £250,000 Transfer Scenario

Let's examine a real-world example: purchasing a $320,000 property in Florida.

Traditional Bank Route:

• Transfer fee: £40
• Exchange rate: Market rate + 1.8% margin
• Total cost: £254,540
• Hidden cost: £4,540

HUBFX Route:

• Transfer fee: £25
• Exchange rate: Market rate + 0.35% margin
• Total cost: £250,900
• Your savings: £3,640

Book a consultation: Speak with a HUBFX property specialist

Get a quote: Calculate your transfer savings

Market insights: Weekly GBP/USD analysis for property investors