RodandEm

Hi,

We are considering the option of delaying trying to move to NZ for a year and moving within the UK and getting on the property ladder.

It doesn't seem like many people choose to rent their UK home out when they move to NZ ?

We would have to get a mortgage, but hopefully rent would cover that when we attempt the big move.

And if it all goes wrong then we still have somewhere to live when we return.

Any thoughts on this option ?

Thanks

Spacecake799

If your not already on the property ladder then why bother? You will just have the stress of a house to be looked after in the uk. You can still come back and start again, but of course you don't want to have that temptation. Just go for it and see what happens. We've just taken an offer on our house. We are a family of five with no job offer but were going to go for an adventure and see what happens. Good luck.

glasgae

That's what I'm trying to do. Mind you I already have a house and I am getting a bit jumpy now as I am due to leave in about 3 weeks and I haven't got a tenant yet!!
aaarrghghg

planty

I would say you should talk to an financial advisor about it.

Look at how much rental properties are getting in your area, work out how much you would need to borrow and see if the repayments outway any possible rent, don't forget if you decide to rent out your home you'll have to notify your mortgage company and you'll probably have to pay a higher mortgage payment. You'll have to take into account insurance and maintenance and if you rent it through an agency, of course they'll want commission. Should you decide to sell in a year (before you go to NZ), take into account the estate agents commission and the solicitors charges.

Look at all your options and don't jump in, you may be better of than you think.

RodandEm

we would be looking at property in south wales as there is no way we could justify the house prices in the south east where we currently rent.

at the moment it is just something we have discussed but i like the idea of having a property here that is slowly being paid off when we're in NZ. tho of course as mentioned it would have to work out financially.

thanks for all your comments so far. great help to see what opinions are.

we wouldn't look to sell the house unless we needed to so we could buy in NZ.

at the moment all we really have is enough money to get us to NZ and settle, this may give us an opportunity to save a little more as the cost of living is a lot lower in wales and emma would be on the same wage.

lapsed kiwi

We rent our house out in UK because we coudln't sell quickly enough and we (or at least, the wife) liked the idea of keeping our UK options open. I'd advise against it. The rent will be very unlikely to cover all outgoings (and we own over 50%) equity, you need all the deposit you can get over here if you want a nice place, and unless you have an ongoing UK income, you will rapidly get into deep financial guano if you have no tenants and are paying a UK mortgage from a NZ salary. Despite our agent's assurances, it took 5 months to find us a tenant, and it's a constatnt niggling worry that they'll move out and there'll be another similar gap.
So my advice is, definitely don't do it.

ukkiwi

Plenty do it i can assure you, seemed like every expat we met while in Auckland had kept their houses back in the UK. Get a decent property manager or even better a trustworthy family member and you'll be fine.

SarahB

We never even thought to sell either of our 2 UK properties before moving to NZ to be honest.... we just assumed we would rent them out. I think that was because OH emigrated to Oz a few years back and came back almost straight away so it kept our options open.

We have now been here a year and I'm in the process of selling my little house in the UK so that we have a deposit for a place of our own here in Auckland.... good exchange rate at the moment. We are going to keep renting out the other UK house.

All depends on what your thoughts are about cutting all your ties in UK and buying or renting here.

We always said we would rent her for a while before deciding what to do and we've stuck to our plan.

Cape Blue

same discussion currently being had on the Canada board

CurlyBloke

I think you've already got some decent advice, but I'll add my two penneth.

We already had a house back in the UK when we moved to NZ, and we did try to sell it, but thankfully there was no interest! This may sound a bit mad, but I am glad that we have a house to go back to in the UK. Our plan was to come out here to see what it was like for a couple of years (me, my wife and 2 girls, 5 and 3 yo) and then go back to the UK. By the way that is still our plan (we haven't fallen head over heels in love with NZ, even though the people are absolutely fantastic). The reason we were trying to sell our house was that we were advised by an agent that our house would be difficult to rent (big, 4 bdrm Victorian terrace). In the end we headed out here and just before we left we got a tenant who will probably rent the place for the 2 years. The rent pays our mortgage. It is worth mentioning though that another ex-pat family that we know are also renting out their house and they are making a small loss (about 100 quid / month), so it does depend on the rental value of the property you were looking at.

I'm not sure I can give you any firm answers about whether you should buy a place to rent out while you are in NZ, but if you can find a house in a reasonable area and a few agents are quoting rents that cover your outgoings I would consider it, exactly for the reason of security should you head back to the UK. Even if you are making a small loss month on month the capital gain back in the UK should more than cover it. That said, my experience of NZ is that I have very little extra disposable cash so I wouldn't want to have to be sending back money to the UK.

maybe that helps you, maybe not. If you want any ideas about costs in NZ before you set off let me know.

Tim, (York, UK) -> (Wellington, NZ)

WheelsOfSteel

One things also to consider here, is that as a NZ resident you are taxed on your worldwide income (no reveltion there, im'sure)

Anyway, any losses you make on rental in the UK (or elsewhere) can and should be offset against other income derived globaly.

You will need to complete a self assement in NZ + the IR3R which has the rental details, but no big deal.

If you are getting paid PAYE in NZ you may have to setup a Loss Attributing Company, but you will need to check that against your individual situation.

There are also 'generous' depreciation rates on building and contents which will increase your loss, that you need to consider. If you intend moving back into the property though, you may choose to elect, not to depreciate your building. The reason being that you will be liable for depreciation claimed when you either sell or move back in. There's a formula which you will use...

Finaly, you can also carry over (i think indefinately) your losses to the next year, so if you ever do make any money, you will not pay tax until you have 'used up' your losses carried fwd, "so to speak".

Anyway, food for thought I am sure. Hope it helps - makes keeping property overseas a little easier.

pennylessinindia

I still have a mortgage on a place in the UK and live in India
it can be a real worry - i need to have folk in it most of the
year to pay all the outgoings - you can take out a policy
to pay rent if the agent does not find someone which can
be good but more outgoings.
It can be hard to keep a track on what is happening - I think
if I had not had the house I would not have bought one and
then left it - all too much hassle. My main reason for keeping
it on is in case I return - my partner is Indian and there are some
very odd rules for Indian nationals to come and live in uk one
being having a place that is your own so hence keeping it at the
moment.