Bix

I have re-jigged a post I made a few months ago as it is very pertinent to people today.

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Not being able to sell your property after the (sometimes) long and arduous task of obtaining a visa just seems like a kick in the teeth doesn't it ?
You really find it hard to believe that this fence is put in front of you

Maybe this will help somebody.

If you have reasonable equity in the property it is possible to remortgage to release sufficient funds to allow you to move before selling the house.
This could be very important if you have a job awaiting in Aus or a validation deadline to meet.

The increased mortgage can be paid by the equity you have released and the money you earn in your Aus job pays rental over there.

This does mean though that the longer the house takes to sell, the more you are eating into your equity, and the less money you will eventually have toward buying in Aus......and what if it still does not sell ?

A second scenario worth considering is remortgaging as above but instead of leaving the house on the market rent it out. Hopefully the rent will be enough to pay that increased mortgage. You can put the house back on the market in the future when you know the market is moving again - but that could be some time and in the meantime you would be renting in Aus.

Neither is ideal but could make the difference of being able to move when you need to.

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BTW, I did the latter and am renting my UK house and renting in Aus.

SamG

Visa arrived last week but house has been on the market for 6 months now despite 2 price drops . Resigned to renting for a year or so once we arrive in April, but then it only becomes a problem once we'd like to buy in Oz, which we won't be doing immediately anyway.

Hope other people have more luck with their house sale.

psb182

EVERYthing sells at the right price

stressed out

The real estate said the market was slow.So we put our house on the market (without getting our visas) We sold the first week and anyday now we have to give them a date when we will move out.I cant face the fast we may lose our house. its all swings and roundabouts.I"ll swop your visa for our house sale!!!!!!

binbird

Don't get me started!

Had an offer last week (Tuesday I think it was) but the day after the people told our estate agents (who were also selling their house) that they were no longer selling or buying i.e. they wished to withdraw their offer on our property and take their own house off the market (which they had already accepted an offer on). Picked myself up from that disappointment, brushed myself down and prepared for another viewing today but these people didn't even bother to show. What is wrong with everyone? I started a thread the other day saying "The Buyers are out there" but I have since changed my mind.

possoms

Hi Bix

we have talked of renting though would prefer to sell, its just the fear of it not working out in Oz then being unable to buy another property here if we have to return anyway how do you manage the renting of your uk property are you doing it through an agent?? if so do they sort out any repairs or emergancies if they go wrong ie boiler blowing up ect overall do you find it hassle free renting it out

Thanks Kay

TheRossers

We've got our's the opposite way around. We have a private buyer for our house (once theirs is sold) but haven't heard back from TRA yet, so our visa app is still with the migration agent!!!

natty

Hi Bix

We are having trouble selling the house and are thinking strongly of going down the rental route.
We are going to re-mortgage and take some money with us plus our savings and this should tide us over until we both get jobs and then we will rent in OZ- the house in the UK can be rented out at a rate which will easily cover the mortgage and insurance and the rest can sit there for use when maintenance is needed on the house.

We have a company coming next weekend to talk us through all the legal and financial stuff.

We still hope the house will sell but with validation needed in May it takes the pressure off. We have decided that if we dont have a buyer by the end of March ( the latest time in which it would be possible to complete by mid may) then we will take it off the market and start advertising it for renting.

We will use an agent- they seem to charge between 10-12% of the monthly rental price which I think is not too bad. This also includes rent insurance which means that if the tenants stop paying the rent, the rental company pay you instead.

I think as you said that this is worth doing in order to get to a new job or make the validation date.

Nat

sackofspuds

I think you have to be a bit careful about tax. The rent in the UK is liable for UK tax. I don't think the Inland Revenue care if you're a non-resident when it comes to property. Check with the agent.

Also, when you become resident for tax purposes in Oz there are various rules about your tax liability on UK assets that you should probably check out.

I'm no expert, but it's worth seeking professional advice.

ABCDiamond

But you offset motgage Interest, and other costs to work out the NET taxable figure.

Bix

Hi Kay,

Yes, we really, really wanted to sell too.

We are using a professional renting agency.
Charge GBP 60 for setting up each tennants contract then 12% of the rental.
We were going to rent furnished but were advised against it as any slight problem with anything would be our responsibility.
We have only left curtain and carpets so have a small contents insurance covering that.
Have the usual buildings insurance.

You make out forms with your agent stipulating the type of tennant you will accept and they vet on that basis.
ie smoker / non-smoker - pets / no pets - kids / no kids.
Remember though the more restrictive you are the harder it could be to find tennants.

They arrange periodic inspections, arrange any wear and tear maintenance or any emergency repairs. Cost of repairs is to our account / claimed against insurance (have had none so far).

We left a list of prefferred tradesmen which they give first option to if any job comes up. For example our plumber who installed and has maintained our heating and water systems for 25 years.

So if physical or legal things go wrong I have local people to deal with it. Worth the fee in my opinion. Imagine trying to do it from Aus.

mysnix

Bix,

Did you have any problems getting your mortgage?
We have just come to the same conclusion, we've just applied for a buy to let mortgage to release some capital, but I'm a bit worried because the mortgage payments aren't that much less than the rental income and I'm not sure they'll accept that. We've had to apply for an 80% mortgage so haven't got much choice who to go with.
Thanks,
Nikki
xx

Bix

Hi Nat,

That's a better deal than I could get down in Cornwall. I have no rent insurance. Check out the set-up fees and repair procedures etc.

Don't forget to apply for Non Residents Landlord tax relief. You can do that before you go to Aus. Your agent won't have to deduct UK tax from the rent.

Form NRL1.....http://www.inlandrevenue.gov.uk/cnr/nr_landlords.htm#2
If you jointly own the house you both need to fill out a form.

It won't suit everyone but could answer the call for a few of us.
In my case I had a 2 year temp visa ticking away and a sponsor who needed me in Aus "yesterday" to do the job.

Bix

Hi SofS,

Firstly, I too am no expert so agree with you there about seeking advice.

As I understand it though while I am renting in Aus my UK property is still classed as my main residence even though it is in turn rented out. Hence no tax consideration in Aus.

If I bought a property in Aus or sold my UK property then that would be a new ball game.

This site
http://www.inlandrevenue.gov.uk/cnr/nr_landlords.htm#2
covers the non residents landlords tax.

Grayling

Bix

As I understand it you will be liable for Australian tax on the rental income.

As it is your main residence then you will not pay capital gains tax when you eventually sell.

If anyone knows different then I would like to know.

G