Sell house or rent it out to see what happens?
 

Hi everyone
Just thpught I'd see if anyone has any advise on our house. We are not sure whether to rent it out for a year just to see how things go in Oz!
Or do you think that you would not be fully committed to new life if you rent rather than sell:confused: :confused:
Tim

Re: Sell house or rent it out to see what happens?
 

We're in the same position not sure whether just to go for it and sell. If it didn't work out for us and we had sold we'd never be able to afford a house like the one we've got it would be back down to the first rung of the ladder for us!!
Good luck.

If we had the choice we would let our house out but we need the money from the sale of the house for the extra 2 points the settlement fund gives us.

Re: Sell house or rent it out to see what happens?
 

Hi we too would rather rent the house out, but cannot afford to fund the move without selling. Also one big consideration with renting would be that if for some reason a tenant left, the mortgage would have to be covered with aussie dollars while the house remained empty (as our mortgage is £800+, we would have to pay around AU$2,400 per month!!) which would not be easy.

It's a difficult one though as we'd be right back down the housing ladder too if we decided to come back, but we are just going to take our chances and sell it.

Good luck whatever you decide

Dawn & Steve

Re: Sell house or rent it out to see what happens?
 

There might be TAX implications if you did decide to sell at a later date, I think you can only claim tax free status on money you take with you initially.
So only rent out if you think you will definately come back otherwise it may cost you.

Re: Sell house or rent it out to see what happens?
 

Thanks everyone,
Not really sure what to do!!
:confused:
Certainly do not want to pay any tax if we sell at a later date.
Good luck to you all.
Tim

I think there are also tax implications on any money made on renting out your house. They get your money one way or the other!

Re: Sell house or rent it out to see what happens?
 

Hi there Tim.

Have a look at the attached tax factsheet ... happy to advise further if you want me to look at your specific situation.

Best regards.

Rent it out defo! My other half has a house which is now packed with students, although the soap dodgers dont pay very much, because there packed in it more than covers the mortgage. The house makes more than enough money to cover the rent, management company costs and helps when we go back to the UK for family visits etc; so we dont have to try and live on AU$ in th UK.
There is always a chance that you wont have tennents for a short time, but after the intial 6 months contract you should have a small stash of cash to cover the short term at least. If you can afford to leave a house in the UK it is worth doing, not only incase you go back, but as an investment.
Word of advise though, find a good management company who your comfortable with, leaving the responsibility to F&F is not worth the hassle to you or them.:rolleyes:

Re: Sell house or rent it out to see what happens?
 

Thanks very much Alan
Will give it to Tim when he comes in from work.
We will definitely take you up on your offer for advise.
Thanks again.
Speak to you soon.
Debs

Cheers Birdey
Good advice f&f not to be trusted (no not really!!!).
Thanks for reply.
Passing all info on to Tim (his department!!)
Debs

Re: Sell house or rent it out to see what happens?
 

We're looking at both possibilities. As far as I can tell, the main factors to consider are:

Can you afford to leave your main asset in the UK - i.e what initial capital do you need to establish yourself in Australia - and have you got it in an easily accessable form? What are the implications of motgage drawdown and/or buy to let, the British tax system, the (current) Australian tax system? How easy would it be to secure a (second) mortgage in Australia against a property in the UK if necessary?

What are the emotional implications? Will there be a temptation to 'up sticks' and return if things get difficult in the early months?

What do you think will happen to the respective property and currency markets? Will Australian property prices increase faster than the UK?

How easy will it be to rent or sell the property in the UK in the current market?

Can anyone add things I haven't considered?

Thanks


Kev

Renting your house can be a nightmare. !!

I have two so am selling one and renting the other, I have family managing the rented one as most agents are sharks. !!

If you do use an agent get family to check things are done right and accompany the agent on inspections.

Last time I used I was in Oz I used a very respected agent and chose them because they had email capabilities etc. (most do now) they did not collect the rent on time, did not inspect the property, did not keep me informed. !!

The property cost me more in repairs etc. than the rent I got back. But on saying that I benefitted from increase in property price.

On the positive side, the house that I rent privatley (and always have), I have never had a problem with.

Having property here in some ways makes it very tempting to come back during bad times.

Also if you weigh up property prices in Oz and UK, if property rises £20k or $20k which would you rather have ?

My suggestion to people with large family homes with loads of equity is sell house and buyer a smaller property to rent out here, that way you are not emotinally attached to it, you get a UK income and you release your cash. (buy to let you only need 25% deposit.)

But much depends on your location as here in Cheshire large family property is hard to rent but small property is easier and commands good rental, ie. 4 bed detached £800 a month, two bed semi, £500.

I want to keep property here in case it all goes pear shaped and I need to return, also so I get a £s income, small it may be but it pays for a return flight if I ever need it.

Not taken any account of the tax situation in any of this as I have agreement with my tenant, whereby we have an agreement that benefits us both.

Hi Debs & Tim,
We reckon sell asap. Not a buyer in sight for our property, only 4 viewings in twelve weeks!! We fly in less than six weeks so are starting to panic. Prices are being cut by up to 20% here in Hornchurch and according to one agent he sees things being worse in six months time. He reasons that we have had five good years of growth that has now peaked. Another house in our road has had no viewings in the same time period.
A drop of 10 or 20 thousand pounds works out to be a lot of dollars and could have a major impact on your quality of life in Mooloolaba!!
Also you can get nearly 5% in an Aussie bank account without the hassle of worrying about tenants, or a housing market that has either peaked or has very little upward potential.
Just our opinion but we wish we had put the house on the market a few months earlier, we neaver dreamt it would be this difficult to sell. Good luck,
Lorrimer