Just had a idea and need some advice....

can we get the equity out of our house ie say around £30k thejhn put up for rent to cover the morgage costs on this presuming they are around £500 a month??

does this idea sound viable ie so we have money to leave the uk and we have some one paying our morgage in the uk??

or do we have certain things we would need to do or pay??

or is it actually really simple to do and pull off???

You will still be liable for Australian income tax on the rental income.

G

what even if it just pays the morgage??

how would any officials know about it in oz??

.....because you have to declare it or you are breaking the law and could be liable for heavy penalties....it is known as tax evasion and that carries severe penalties in any country.....ask Lester Piggot or Ken Dodd.

i see!!

but what if its just paying the morgage??

how much would this tax be roughly??

It depends on the rest of your income.

In Australia you are taxed on your worldwide income.....so it could be up to about 47% depending on what you earn.

There are ways to offset it but this is an area for an accountant.

Just to add.....the rules are different if you are on some temporary visas

so its not a good idea then??

That depends on your circumstances.

Don't forget you will need to tell your mortgage lender that you are renting your house & they may increase the interest on the loan. Rented properties usually pay about 1% over the usual lending rate or thereabouts.

It is do-able though, provided you have the equity in the house, find out from your building society what they will charge you & then get a valuation for rental from 2, preferably 3 letting agents.

Remember that there may well be times when the house is empty, so you must remember to account for that. Oh, & the Ozzie tax as well

Best of luck

yeah i may give the rent thing a miss i think

If the rent just covers the mortgage you are fine and there will be no tax to pay...
CGT will be payable on the difference between the price you paid and the price you sell for (IF you decide to sell it in the future) - less your CGT yearly allowance - not sure what that is in oz?

That's incorrect, you can't offset the entirety of the mortgage payment against the rental income although you can offset some rental expenses and in any event it must be declared. Also, there is no CGT allowance, the first to the last dollar of the CGT event is taxed. The OP really needs some professional taxation advice before considering this any further.

this idea was a very rash and un thought out idea i am gonna give this a miss it sounds like to much hassle

cheers for the replys though that brought me back down to earth!!!

Hang on a minute.....

we all start somewhere with a new idea gerry, give yourself a break. At least get some information about how this will work out for your own circumstances. Lots of people do rent their houses out whilst they're abroad very successfully, you just need the right information to help you make that decision, that's all.

Don't give it up yet & stop being so hard on yourself