loubie

I'd like to know peoples experiences with this . It is something we are considering as the lower interest rates and quite high rental means that the mortgage would at least be covered and anything left over after agents etc could go toward renting somewhere nice in Aus.

Is it worth using an agent to look after the house , house inspections etc , or just to let them set it up and pay a family member to keep a check on the place . It's quite a new property so hopefully we shouldn't have too much go wrong if we weren't about to sort it.

Love to know peoples experiences , thanks

Dave

charw

Wirelessly posted (NokiaN73-1/4.0750.31.2.1 Series60/3.0 Profile/MIDP-2.0 Configuration/CLDC-1.1)

Are you permanently moving? Then Why do you wanna leave something back @ home ?

Further if you move temp then your options are tempting!
Or else you mean renting your stuff in oz?

Kingseat

Use an agent. It is a big ask of a family member plus they'd need to be up to date with all the current legal requirements of letting a property - much easier for an agent plus all their fees are tax deductible.

Have a search of old threads on the subject. There are a few.

garyp

Maybe coz they cant sell house in time and the selling prices are rubbish at moment. Thats my situation anyway thats why I am renting out house.

loubie

Well yes , not to mention the current exchange rate . People forget that a lot of the time a fluctuating exchange rate can make a big big difference. My feeling is that the pound will get stronger gradually.

I'm thinking let an agant do it too, at least you can rest assured its being looked after hopefully .

Thanks for replies.

bluekipper

Im having to rent mine to my sis Loubie, want to sell when prices rise though & she is happy with this, because it will be a few years off!

Needs must!

Good Luck

Bluekipper

Mrs Jackaroo

We've been renting ours out for almost 4 years now. We had a few dramas to start with but that was down to a dodgy tenant. All good now though after changing agents. Theres no way I'd do it without an agent. As it is now, I barely think about the place.. just get statement of accounts from the agent each month and thats it. I'll be more than happy to keep letting it until our retirement

Kooky.

I let mine for a year when we first left the UK; we didn't know how things would work out in Asia and wanted a get out clause.

I used an agent who turned out to be a complete crook, but I'd still recommend one if you can find a reputable one and have family nearby to keep an eye on them. It's a big responsibility to ask of a family member to manage the whole thing but having somebody local to deal with the agent, if necessary, is a good idea.

I sold up because I couldn't get any sense out of mine, she lied to me, she was slack with my tenants' needs, and she liked holding onto my money. I found it too stressful and had nobody local to help me, but I'd still have my house now if it wasn't for that bitch; I got more than 3 times my mortgage payment and it would have been a nice little investment.

sportsendurance

We will probably be renting our house out to some very good friends of ours. However, we will be using an Estate Agency to bind the contract but will rely on parents to oversee any problems. We will therefore not need to pay the agency each month.
I was informed today that you don't pay tax on any profit you make. ie if your morgage is £500 and if you charge £700 then apparently whilst living in Ozz you wouldn't pay tax on the £200. I find this hard to believe unless you left the £200 in a UK bank account.

Zenshin

Please check what Visa you have. If you are permanent resident you must declare your worldwide income. So you would in actual fact be paying tax on profit from rentals to the ATO. It is all lumped in with your income from employment.

At the same time though, if you were to make a loss then the ATO will allow you to offset it against your income. This is different to how it would be treated in the UK. Best thing to do to avoid any complications is to find an accountant who is knowledgible in both UK and Australian tax. You will be required to fill in a self-assessment UK tax form for rental income in the UK.

BAY

You most certainly DO pay tax on any profit. You have to declare all earnings, those in Australia and those overseas. Tax evasion is a serious crime and you could lose your visa. It doesn't matter where you keep your $200. If you keep it in a UK bank account you still have to declare it and you'll have to declare the interest you earn on it and pay tax on that.

Bare in mind though that there is a recipricol tax agreement between Australia and the UK, so that you only pay tax once, you don't get double taxed. I don't pay any tax in the UK (don't want NuLabour/Gordon Brown to waste it) but declare it to the ATO and am happy to do so.

For rental income in the UK you can fill in a form so that you don't pay UK tax on it at source.

PS. Would definitely recommend using a letting agency. They handle getting the rental money from the tennents, any repairs that need doing and sort out getting new tennents when the old ones decide to move on. Very stress free.

ozhappy981

If you are in Oz on a permanent visa, you pay tax on your world-wide income. This includes any profit you make on the UK rental however small this profit may be.

If you are in Oz on a temp visa, any profit (or loss) from your UK rental is ignored in the Aus tax return.

Assuming you come to Oz on a perm visa, you first need to make sure you complete the relevant paperwork so that the UK rent is paid to you gross (i.e. without UK tax deducted). Get this organised as soon as you know your definite departure date from the UK!

Here are the forms:

(i) Your letting agent needs to complete form NRL4.

(ii) You need to complete form NRL1.

Both forms and the guidance notes on how to complete the forms are on this page: http://search2.hmrc.gov.uk/kbroker/h...jsp?formId=742

Download them and take them to your letting agent.

When you then come to do your Aus tax return: You can claim all of the expenses of your rental as deductions against the rental income, i.e. mortgage interest, agent's fees, water rates (unless the tenant pays this), repairs, postage, telephone calls etc. If your rental then makes a loss, that loss reduces your other assessable income in your Aus tax return.