infinity

When you go to Auz or NZ to live/work what have people done with their homes back in the UK?

Do you rent them off or sell them?

If you rent do you have to get a buy to let/commercial mortgage, or just seek permission from your own mortgage lender and how does it affect your buildings insurance?

Thanks in advance guys!

Cheers - Ian

Rosie n family

Its not just the finances......
Hassle and and worry factor quite high - probably depending on the type of house - ours was not your typical magnolia minimalist block. We couldnt commit to selling up and emigrating without trying the life out first.

So we painted our home builder's beige and spent a fortune in Ikea -
And we got a "company let" then found it quite straightforward with the insurance - just a phone call and an increased premium. You'll have to check with your own mortgage company.

The worst thing for us was 6 months in, our tennants handed in notice, it meant returning from Oz-as financially it would have crippled us - we also werent prepared to sell up in the UK.
After a nervy few weeks, We found a new tennant at a lower rent - who wants it unfurnished so Ive got to empty and store all the furniture from here - its gonna be expensive and we're at the mercy of kind relatives to oversee it all goes OK. Meanwhile we've still got to pay for the upkeep and as its quite old bits n pieces need doing constantly ($300 quid for the garden upkeep, etc)
Im sure it will be OK but I now realise that if we dont have tennants it really does mean going back on a two-month notice and that things are out of my control, so if you have jobs, kids in school its worth considering.
Good Luck
Rosie

spalen

On the mortgage side - specifically because you are renting you dont need to change it - you may have to because of your circumstances in emigrating but thats a different story - no reason not to maintain your UK mortgage. You should advise your mortgage lender that you are renting your property. I believe most mortgages have a 'requirement' in them to do this, I think from recollection they took £15 from us to 'note' this on the mortgage.

Buildings Insurance - again you need to notify them. They shouldnt increase policy materially.

If you are leaving furniture it needs to be reasonably new because it must be compliant with British Standard fire regulations, which I think means bought in the last 8 - 10 years. This may have changed but its one of those things you dont think of. If you're renting the house out as multiple occupation ie more bedrooms than you have now you may fall fowl of building regs etc. If you are renting to students via University you may have to have University people approve it with regard to smoke detectors, fire exits, etc.

Tax Wise - you have to pay tax at your prevailing income tax rate on the profit from the exercise. You can reduce the 'profit' by legitimately deducting :
- Any and all Costs for repairs, maintenance.
- Interest on the mortgage (not sure about capital repayment cant remember)
- Fees for agents etc
- Installing things like smoke alarms
- Annual landlords certificates for electrical + gas safety checks
- Wear and tear on furniture you leave behind etc.(depreciation).
- Might be worth paying an accountant to do this if you're disinclined, ours does our annual returns for £75 (but we pay him £x,000 for running our business accounts too ;-( )

Make sure you keep receipts.

If you just get a decent letting agent round to give you a quote they'll advise you on this stuff. I think they charge between 10-20% of the mthly rent depending on the services you take. (Fully Managed vs just advertise & find a client).

Deposit wise - ive rented and been a renter of property and I always always end up getting stitched up on deposits, must be me being nice and not bothering to pursue awkward buggers.

Tenants will trash your house in 'your view' after 12mths the house will be v.different and look tired, this isnt because of maltreatment its just it'll be an empty property with 'used' walls/carpet etc when you return to it.

we found it hard to move back in without redecorating 95% of it so consider this in your calculations.

hope this helps. < Caveated with its been a few years since we rented our property but have had company flats etc rented for last 2-3 years on/off>

One other thing to take advice on - what happens if after 12mths you've stayed in Aus and are going to flog the house... is it still your main property or is it now an 'investment' and therefore subject to capital gains tax( which if you bought it any longer than 1 week ago would be large because of market ). Just check that before getting stuck in.

Alan Collett

Not necessarily ... there is a CGT exemption in Australia where a former main residence (which can be in the UK) is used for income generating purposes for up to 6 years, and where there is no other dwelling in Australia that is a main residence.

Best regards.

infinity

Thanks for the advice guys!