Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Mar 24th 2005, 6:30 pm
#1
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Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Comments, Experiences and Advice on renting house out in the uk instead of selling-up.........
Just in case we find,after a couple of years,that we need to come back to the u.k. from Oz.
One thing we are concious of the financial ability to get back into the u.k.if it doesn't workout, Britain doesn't get any cheaper!
Are they ways to invest or use money,to release funds without having to sell property to do it?
Cheers,
Lynn
Just in case we find,after a couple of years,that we need to come back to the u.k. from Oz.
One thing we are concious of the financial ability to get back into the u.k.if it doesn't workout, Britain doesn't get any cheaper!
Are they ways to invest or use money,to release funds without having to sell property to do it?
Cheers,
Lynn
Mar 24th 2005, 7:28 pm
#2
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
We have sold our house but are buying our buyers house. They were deperate for our house but couldn't sell theirs. Plenty of viewers and interested parties but they hadn't sold theirs either, vicious circle at the moment. Anyway as we too were finding it difficult to sell, and after much deliberation, we decided to buy theirs. Its a very nice house (3 bed detached) in a very nice area, just round the corner really. It is 54k cheaper than ours, so it has released enough capital for us to go and pay for everything and is very rentable. I really dont think we would get another offer as good as theirs, so this is what we are doing. It is due to go through on the 15th April. We have go a proper buy to let mortgage and are doing everything above board. We will employ a letting agent as it would be impossible to self manage.
Cheers Jo
Cheers Jo
Mar 24th 2005, 8:19 pm
#3
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
You would need to look into the tax situation too.
As I understand it, you have 6 months to transfer monies across tax free, so if you sold your house 3 years later you could end up with a tax bill.
I guess you'd have to declare the rental as well in Oz as you get taxed on worldwide income when resident in Oz.
Just a few points to bare in mind. I'm no tax expert so best to investigate this properly to make sure.
Phil
As I understand it, you have 6 months to transfer monies across tax free, so if you sold your house 3 years later you could end up with a tax bill.
I guess you'd have to declare the rental as well in Oz as you get taxed on worldwide income when resident in Oz.
Just a few points to bare in mind. I'm no tax expert so best to investigate this properly to make sure.
Phil
Mar 24th 2005, 9:06 pm
#4
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
You would also need a really trustworthy agent. Friends went to the US for four years for work and rented out but the agents didn't keep a very good check on the property and on one occasion when something needed doing, they got the first quote and went with it. Cost friends about treble what it should have and when they finally came back the place was trashed.
Mar 24th 2005, 9:44 pm
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Mar 24th 2005, 9:59 pm
#6
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by lynnbrooks
Comments, Experiences and Advice on renting house out in the uk instead of selling-up.........
Lynn
Lynn
Me and the hubbie have rented out our flats. They are in good areas, so we didn't have too much hassle finding tenants in Edinburgh and Glasgow. All our cost are covered: mortgage, insurance and running repairs.
We re-mortgaged to release some capital, the properties have now increased in value so we have broken even after just one year. (the money we took out is the same as the increase in value).
Scarey part is when you have no tenants and have to find the money to pay the mortgage yourself. We had 2 months of paying 2 mortgages....but all has been well for the past 12 months (fingers crossed). We've kept 3 months worth of mortgage payments in the uk, just in case.
My sisters look after each property. We used an agent in Edinburgh (always have to chase them - they are crap), but my sister goes round when an inspection is being done, just to keep an eye on things. The agents have always found tenants though! The Glasgow one is rented to friends of friends and my other sister handles anything to do with it, no hassles so far.
We're looking at these as long term investments - someone else is paying off our mortgages. We're giving ourselves 2 years in Oz, getting our citizenship and then deciding what to do. At least we can go back without too many problems.
Because it has been your home, your house is probably in really good order, compared to other rentals in your area. That's a really big selling point. When you leave, try not to get too attached to your old "home", its now making you money. That's how we think about it.
Tax is going to be a bummer. We're ok at the moment as we didn't make a tax return last year, but we legally have to declare our worldwide earnings and will be taxed on them....looking out for a "dodgy" accountant in Oz. You could be taxed at 40% on your rental income. :scared: Will need to look into this.
Mar 24th 2005, 10:20 pm
#7
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by Bix
As usual someone's been there, done that and explained it well.
Will have to find an Aussie accountant now
Mar 25th 2005, 3:24 am
#8
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by linda_clarky
Hi Lynn
Me and the hubbie have rented out our flats. They are in good areas, so we didn't have too much hassle finding tenants in Edinburgh and Glasgow. All our cost are covered: mortgage, insurance and running repairs.
We re-mortgaged to release some capital, the properties have now increased in value so we have broken even after just one year. (the money we took out is the same as the increase in value).
Scarey part is when you have no tenants and have to find the money to pay the mortgage yourself. We had 2 months of paying 2 mortgages....but all has been well for the past 12 months (fingers crossed). We've kept 3 months worth of mortgage payments in the uk, just in case.
My sisters look after each property. We used an agent in Edinburgh (always have to chase them - they are crap), but my sister goes round when an inspection is being done, just to keep an eye on things. The agents have always found tenants though! The Glasgow one is rented to friends of friends and my other sister handles anything to do with it, no hassles so far.
We're looking at these as long term investments - someone else is paying off our mortgages. We're giving ourselves 2 years in Oz, getting our citizenship and then deciding what to do. At least we can go back without too many problems.
Because it has been your home, your house is probably in really good order, compared to other rentals in your area. That's a really big selling point. When you leave, try not to get too attached to your old "home", its now making you money. That's how we think about it.
Tax is going to be a bummer. We're ok at the moment as we didn't make a tax return last year, but we legally have to declare our worldwide earnings and will be taxed on them....looking out for a "dodgy" accountant in Oz. You could be taxed at 40% on your rental income. :scared: Will need to look into this.
Me and the hubbie have rented out our flats. They are in good areas, so we didn't have too much hassle finding tenants in Edinburgh and Glasgow. All our cost are covered: mortgage, insurance and running repairs.
We re-mortgaged to release some capital, the properties have now increased in value so we have broken even after just one year. (the money we took out is the same as the increase in value).
Scarey part is when you have no tenants and have to find the money to pay the mortgage yourself. We had 2 months of paying 2 mortgages....but all has been well for the past 12 months (fingers crossed). We've kept 3 months worth of mortgage payments in the uk, just in case.
My sisters look after each property. We used an agent in Edinburgh (always have to chase them - they are crap), but my sister goes round when an inspection is being done, just to keep an eye on things. The agents have always found tenants though! The Glasgow one is rented to friends of friends and my other sister handles anything to do with it, no hassles so far.
We're looking at these as long term investments - someone else is paying off our mortgages. We're giving ourselves 2 years in Oz, getting our citizenship and then deciding what to do. At least we can go back without too many problems.
Because it has been your home, your house is probably in really good order, compared to other rentals in your area. That's a really big selling point. When you leave, try not to get too attached to your old "home", its now making you money. That's how we think about it.
Tax is going to be a bummer. We're ok at the moment as we didn't make a tax return last year, but we legally have to declare our worldwide earnings and will be taxed on them....looking out for a "dodgy" accountant in Oz. You could be taxed at 40% on your rental income. :scared: Will need to look into this.
Mar 25th 2005, 10:38 am
#9
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
I think you are only taxed on the "profit" made, ie after Interest only section of mortgage and other reasonable expenses such as Buildings insurance, maintenance etc
Cheers
Paul
Cheers
Paul
Mar 25th 2005, 10:56 am
#10
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
We have quite a few properties in the UK & after much thought, we have decided to sell the lot (some of which we will have to pay capital gains on, although we have taken steps to minimise this). Here's the reasons:
Tax complications in both UK & Australia.
Hassle of running them from so far away, most estate agents in UK are crap.
We reckon that UK (& Oz for that matter) propert market is going to be flat for the next few years at least, any money we don't need in Oz, we can invest here & make 5-6% interest per year, better than property market is going to be.
We want to use some of the money to invest in Australia.
Tax complications in both UK & Australia.
Hassle of running them from so far away, most estate agents in UK are crap.
We reckon that UK (& Oz for that matter) propert market is going to be flat for the next few years at least, any money we don't need in Oz, we can invest here & make 5-6% interest per year, better than property market is going to be.
We want to use some of the money to invest in Australia.
Mar 25th 2005, 5:44 pm
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
we rented out our house a few years ago through and estate agent as it was easier, but I made a point of saying don’t rent it to people from the DHSS and at first they didn’t, a little later on that person started claiming benefits...
I wasn’t informed by the agents.(ok not the agents fault)..A few years later I wanted to sell the house, the tenants claimed "squatters’ rights, the local council did jack S&*$% as they didn’t have the house them, it took me 3 months to get them out and during that time you can’t take any rent off them…
I wasn’t informed by the agents.(ok not the agents fault)..A few years later I wanted to sell the house, the tenants claimed "squatters’ rights, the local council did jack S&*$% as they didn’t have the house them, it took me 3 months to get them out and during that time you can’t take any rent off them…
Mar 25th 2005, 6:05 pm
#12
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by Amazulu
We have quite a few properties in the UK & after much thought, we have decided to sell the lot (some of which we will have to pay capital gains on, although we have taken steps to minimise this). Here's the reasons:
Tax complications in both UK & Australia.
Hassle of running them from so far away, most estate agents in UK are crap.
We reckon that UK (& Oz for that matter) propert market is going to be flat for the next few years at least, any money we don't need in Oz, we can invest here & make 5-6% interest per year, better than property market is going to be.
We want to use some of the money to invest in Australia.
Tax complications in both UK & Australia.
Hassle of running them from so far away, most estate agents in UK are crap.
We reckon that UK (& Oz for that matter) propert market is going to be flat for the next few years at least, any money we don't need in Oz, we can invest here & make 5-6% interest per year, better than property market is going to be.
We want to use some of the money to invest in Australia.
Can I ask, what type of investments would you consider worth looking at if it wasn't in property?
Lynn
Mar 25th 2005, 6:09 pm
#13
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by Steve2438
we rented out our house a few years ago through and estate agent as it was easier, but I made a point of saying don’t rent it to people from the DHSS and at first they didn’t, a little later on that person started claiming benefits...
I wasn’t informed by the agents.(ok not the agents fault)..A few years later I wanted to sell the house, the tenants claimed "squatters’ rights, the local council did jack S&*$% as they didn’t have the house them, it took me 3 months to get them out and during that time you can’t take any rent off them…
I wasn’t informed by the agents.(ok not the agents fault)..A few years later I wanted to sell the house, the tenants claimed "squatters’ rights, the local council did jack S&*$% as they didn’t have the house them, it took me 3 months to get them out and during that time you can’t take any rent off them…
Wow,that is seriously stressful..,so i take it,when you leave for oz,you will cut and take the money with you because of your experience..?
Mar 25th 2005, 6:16 pm
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by lynnbrooks
Wow,that is seriously stressful..,so i take it,when you leave for oz,you will cut and take the money with you because of your experience..?
To true lynn,abeit a few years ago,i dont think the agent or the law have change to much to protect the owners...if you are over hear then you cope with it,yes you make money,but i payed fees every month and once a year "management" fees which was a whole months rent,then the bills for the gas fitter to check the gas and the list goes on...all wanting their fees....so yes Lynn...Sell up going to be my game plan...
Mar 25th 2005, 6:43 pm
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Re: Who's Rented Their House Out Instead Of Selling-up To Re-locate?
Originally Posted by Steve2438
To true lynn,abeit a few years ago,i dont think the agent or the law have change to much to protect the owners...if you are over hear then you cope with it,yes you make money,but i payed fees every month and once a year "management" fees which was a whole months rent,then the bills for the gas fitter to check the gas and the list goes on...all wanting their fees....so yes Lynn...Sell up going to be my game plan...
Thanx for the advice,we are just considering our options but we were leaning more towards selling up anyway.
I guess what makes me nervous is if for whatever reason,after a few years,we decide to come back to the uk,will we beable to get back in the housing market without squatting ourselves,i don't know enough about the world of finance etc. to make a educated decision,which is why these threads are so great!..
lynn
