Jan4kids

I have just had the fortune (misfortune? ) to inherit a house in the U.K.

I have only just returned from the U.K (after a whirlwind 3 1/2 weeks of funeral arranging and house clearing) and am therefore in the early stages of deciding what to do for the best...so thought I'd see if anyone has experience of this scenario?

I am still a U.K Citizen (for the moment), an Australian tax payer and Permanent resident.

I am seriously considering renovating the property and renting it out until the U.K market improves. Initial enquiries seem to suggest that I may be taxed twice, but able to claim back on myOz tax return?? The other option is to just be done with it and sell for the best price.... *sigh*

I really could do with a crystal ball right now

Can anyone offer advice, or have experience themselves of this situation??

Thanks (in advance )

Jan

JAJ

Leaving tax aside, what would you want to do with the property? Keep it or sell it?

If you sell it, what could you do with the funds (eg pay off your Australian mortgage?)

Do you ever intend to return to the U.K.?

How easy would the property be to rent?

Jan4kids

Hello JAJ, Thanks for your reply.

We are 99% sure we are not returning to the U.K (nothing is certain after all)

If we received the lump sum, we would pay off the mortgage on our main home here, then reborrow to negatively gear/buy one or two more investment properties....

At the moment I feel I would like to keep the property, but this is based on an emotional attatchment (childhood home ) rather than looking at it as bricks and mortar. Keeping it would mean renovating and then renting ......holding out to sell until the market improves and in the mean time receiving an income (rent)

The property is in a very favourable location.....10 minute walk to train Station to London, good schools,new improved High Street shopping,greenbelt on your doorstep and on a well thought of Estate.

Sell tommorrow to a property developer for £160,000
Hold out and might get £200,000 (in present state)
Renovate to a good, legally rentable finish £46,500 (by a trusted friend.....but still a builder so allow for £60,000 )
Possible achievable rent per month (£1,300)
I had a cash offer of £240,000 just before I left...but I smell a rat and am certain the buyer (a neighbour) has not seen the interior, rear and garden... which is in a very bad way.
House is presently being tried on the market for a trail period....just to see if any one 'bites'

No point going through the hassle of renovating from afar/renting out only to get taxed up to the hilt, but also don't want to sell in case the market improves either.....as I said I need a crystal ball

Just want to know how to make the house work best to help my kids future as my Mum wished *sigh*

Thanks Again,

Jan

P.S Anyone else any ideas/experience in this area??

Jan4kids

TMI ? :0(