flodsfive

Hi there everyone,

We are currently in the process of potentially buying a property in Coomera, whilst living in uk. Mad I know, but it's a property we wanted when we were over in Jan but could'nt afford now they have dropped there price (by alot) we can.

So I really need advice on the whole process. Recommendations on a good solicitor would be great. There is also a really tricky issue involved.

The sellors want to stay in the property either rent free or reduced rent until we move over in Nov. In principle we do not mind this, However, we were unsure of the legalties involved. bond, tenancy agreements etc.
We are aware that you have to pay increased stamp duty equivilent if you let the property out, would we have to pay this?

Has anybody come across this before, any advice? any input appriciated.

Mrs Jackaroo

Wow Rent Free for a few months is a LOT of money over here.......I assume you're taking that into consideration when you make the offer?!

If it were me, theres no way I'd go down that route without giving it very careful consideration. Will you be able to be in Australia when the purchase completes to inspect the property on handover? If not will you hand the property over to agents to manage it while you're in the UK - thats something I would definitely do.......and again you'd have to take that into consideration when considering what rent, if any you charge them.

Why do they want to stay in the property after the sale, or more to the point......why the free/reduced rent??

flodsfive

Just bumping this in case somebody can help who has'nt seen it yet.

Please

flodsfive

HI, I must of bumbed thread same time as you replied.

regards handover my mum and brother live near so they would inspect property.

regards rent reduced or free, basically the sellers need to sell asap. apparently real financial problems, we are offering below what it cost them to build (apparently or so they say). Consequently, they are considereing our offer even though its alot under the asking price because the period off rent free will help them sort themselves out. So in effect they are paying by accepting a low offer i guess.

Not sure of the legalities involved though




Or our we being totally stupid considering this.

Mrs Jackaroo

Right ok ........... i can see where you're coming from now. And having family close by will obviously be a benefit.

No not mad considering it, if ultimately you're going to get the house you want, at a price you want to pay. But please do take into account the rent you could get if you were to let to someone else while waiting to move over. Also think about the Water Rates (tenant only pays a small amount of this) and the normal Rates - landlords pay the rates here. Not sure if you would have to pay them if the property remained vacant?? Worth finding out? Plus Agents Fees and maintenance of the property - as soon as that property belongs to you it would be up to you to maintain it. Your new tenants will obviously know the property very well and will be aware of things that may need to be fixed. Whats to stop them holding out until it completes, then coming up with a list of things that need fixing??? Just looking at a worst possible scenario I know.....but obviously things you need to consider.

longreach

This is a first for me

I would definately charge some rent, ensure a bond is payed etc.

What visa do you have? I would think there are a few potential tax issues.

Also, without actually knowing anything about this house, it worth considering that there quite a large number of good properties on the market at the moment and I don't forsee that changing much in the near future.

flodsfive

Thanks for that, some good points for us to consider, looks like I need some good legal advice.

flodsfive

Hi longreach,

I'm a aussie citizen (by descent) so I can by the property, used to live not far away in Paradise point but have now lived in England for 20 years. Never owned a property in Aus as moved to uk when I was 18.

So therefore, nervous of process. Re, the property market. we keep saying to ourselves the sensible thing is to wait and had decided this would be the case until the beginning of the week. Then the estate agent emailed us and said the property we had been interested in will accept a really low offer because he wants to sell. So here we are. Extremely anxious, wondering if we have gone mad. but by all accounts getting a nice home in a good location at a good price.

Just not sure of tax implications and letting problems.but would like to help the sellers out providing we are not laying ourselves open to a whole new can of worms

longreach

Are you a cash buyer or need a mortgage? If you need a mortgage then the banks will be taking a good hard look at your income because in effect you will be buying an investment property without yielding any income from it (as far as the banks are concerned because you will not be residing in it when you take out the loan).

Are you also paying off a UK mortgage?

stariston

Sounds like the seller will want a cash sale I dont think you can
rent it back totaly free i think a peppercorn rent will have to be arranged
A state Solicitor recommended by the agent instructed for the period of
the lease will be your best bet
There is a lot of forced sales of late due to tightening of finance by banks
sign of the times hay

flodsfive

We have sold our uk property and now renting my mums uk property off her. We will be having a small aussie mortgage but the plan was that it would be our residence not a buy to let.
This issue with the sellers wanting to stay was suggested by them when they found out we would not be moving over till Nov.
As far as payment goes. My OH will be keeping same job with a very long occasional commute back to uk. So bank have said thats ok.
It's beginning to sound like letting the sellers stay there is going to be difficult. Will it effect the amount of stamp duty (or equivilant)?

flodsfive

Thanks stariston,

My mums now recommended a solicitor today so I'll contact him Mon first thing and get advice.

I must admit I feel for the sellers sounds like they are having a hard time. Makes me feel like we are taking advantage but they approached us to put a offer in even though we ruled ourselves out because off the poor exchange rate.

Guess in the long run beats a repo

laguna33p

Dont take anything for granted, esp when it comes to buying/selling property. Get everything in writing and ensure you have a reliable and trustworthy agent working for you if you cant be there in person.