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Do we sell or rent out our house in uk

Do we sell or rent out our house in uk

Old Jan 2nd 2007, 4:00 pm
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Default Do we sell or rent out our house in uk

Hi

We have just sent off our visa, but while we are waiting, we are wondering about our house here in the uk.
Have you found it better to keep it and rent out or to cut ties and sell it?
How much money do you think you need to set yourselves up in Australia? We are a family with 2 children aged 3 & 4 at present.
This would be a determining factor in whether we sell or rent.

Many thanks in advance for any info.
Chez
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Old Jan 2nd 2007, 4:08 pm
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Default Re: Do we sell or rent out our house in uk

When we looked into renting ours out we found that once we'd given a cut to an agency/friend to look after it, and paid income tax on it (which I think technically you have to do, although I believe there are loopholes so it might be possible to avoid it) it just was not worth it.
We also need the equity if we are to buy in Australia, and on top of that thought that psychologically it would be good to cut all ties and make a clean break. Having said that, we have no kids and one job guaranteed when we get there, so there is more certainty in our move than for some others and I imagine as a twenty-something couple we can ride out the bumps perhaps more easily than a family. It must be harder to rough it if you have toddlers.

If you had a small UK mortgage to pay then it might be more beneficial - any UK£ you have left over will translate nicely into A$ at the moment. Having said that, exchange rates can change and if your house was left empty then it might be a struggle to pay a UK mortgage out of an Aussie salary.

Is that any help?!
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Old Jan 2nd 2007, 5:24 pm
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Default Re: Do we sell or rent out our house in uk

I was looking into this but was advised that if you rent your house out for more than a year for tax purposes it is no longer regarded as your main residence. This means you have to pay Capitlal Gains Tax (40%), when you sell, on the profit in equity you have made since you bought the property. Financially it doesn’t seem worth holding onto your house in the UK unless you intent to keep it for a long time.
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Old Jan 2nd 2007, 6:25 pm
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Default Re: Do we sell or rent out our house in uk

Originally Posted by chez.my
Hi
Have you found it better to keep it and rent out or to cut ties and sell it?
From our point of view we would sell up. We currently have a Unit in Manchester worth 400,000 pounds and rent it out for 800 per month. It is fully furnished and managed by an agent. we get approx $500 a month after costs (excluding furniture). We found that return on property in UK isn't as good as AUS.

We have a property in Sydney same size and costs about 2/3thd's of the UK property price. However we are getting 3 times the rent and we don't have to rent it furnished.

If you are considering renting it may be worth selling up and buying property in AUS.

Please do your sums when comparing your situation.

KS
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Old Jan 2nd 2007, 6:31 pm
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Default Re: Do we sell or rent out our house in uk

[QUOTE=Mr Pencil;4243667]I was looking into this but was advised that if you rent your house out for more than a year for tax purposes it is no longer regarded as your main residence. This means you have to pay Capitlal Gains Tax (40%), when you sell, on the profit in equity you have made since you bought the property. QUOTE]

I think you are a bit mixed up here.

To the OP takes professional advice about tax etc.

G
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Old Jan 2nd 2007, 6:35 pm
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Default Re: Do we sell or rent out our house in uk

Originally Posted by Grayling

To the OP take professional advice about tax etc.
I'd second that- it can get very complicated and what works for one person may not be the best solution for someone else.
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Old Jan 2nd 2007, 6:53 pm
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Default Re: Do we sell or rent out our house in uk

Originally Posted by chez.my
Hi

We have just sent off our visa, but while we are waiting, we are wondering about our house here in the uk.
Have you found it better to keep it and rent out or to cut ties and sell it?
How much money do you think you need to set yourselves up in Australia? We are a family with 2 children aged 3 & 4 at present.
This would be a determining factor in whether we sell or rent.

Many thanks in advance for any info.
Chez
Need more info...! Have you got employment lined up, where are you going to, etc etc...

Some say sell up and take everything with you for your new life, others say hang on to your property in case you decide to return... Personally if you can afford to, I'd hang on to it for a while, rent it out while you rent somewhere over here for say a year or so... If at the end of the year you've decided where you want to stay in Oz and are happy then sell in the UK... Make some money too with the predicted gains in the UK this coming year...!
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Old Jan 2nd 2007, 7:02 pm
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Default Re: Do we sell or rent out our house in uk

[QUOTE=Grayling;4243810]
Originally Posted by Mr Pencil
I was looking into this but was advised that if you rent your house out for more than a year for tax purposes it is no longer regarded as your main residence. This means you have to pay Capitlal Gains Tax (40%), when you sell, on the profit in equity you have made since you bought the property. QUOTE]

I think you are a bit mixed up here.

To the OP takes professional advice about tax etc.

G
Of course, I wasn’t suggesting for one minute that the poster doesn’t take professional advice on tax matters. It would be foolish not to. I just thought it may be helpful to them to know what an accountant told us about our property. What’s mixed up about that?

Mr. P
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Old Jan 2nd 2007, 7:05 pm
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Default Re: Do we sell or rent out our house in uk

[QUOTE=Mr Pencil;4243888]
Originally Posted by Grayling

Of course, I wasn’t suggesting for one minute that the poster doesn’t take professional advice on tax matters. It would be foolish not to. I just thought it may be helpful to them to know what an accountant told us about our property. What’s mixed up about that?

Mr. P
You would only be liable for CGT on the difference in price (if any) from when you leave the UK.......NOT from when you bought the house.

It remains your main residence unless you buy another.

G
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Old Jan 2nd 2007, 7:18 pm
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Default Re: Do we sell or rent out our house in uk

If you are resident in Australia you will be liable for Australian tax.

This is different to UK tax as far as capital gains are concerned. There are also several ways in which the tax can be minimised. You can even claim for any decrease in value of your house.

Take expert advice.

G
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