Should I Sell my UK Home or Rent it Out??
Oct 6th 2014, 2:02 am
#1
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Joined: Feb 2014
Posts: 592
Should I Sell my UK Home or Rent it Out??
Everyone's situation is different. Basically it will depend on your financial position and whether you are making OZ home and then whether you need to release equity in the UK home to buy here etc. If you are unsure about staying in OZ then it is probably better to not sell and see how things go here first.
If you own the home and or have a large amount of equity it may be more viable to keep it as an investment producing income which can be used for retirement and / or buying a house here.
You may need to release equity in a home so you have funds to buy in OZ. You may need to sell up so you can service a loan here if the UK property is negative cash flow.
You may need to sell off as you can not afford to maintain repayments etc.
Notes:
1. Some banks charge you extra for renting out the home than if you living in it.
2. Capital gains is not normally payable until 3 years have passed in the UK. If you a non resident no capital gains is currently payable at all. These rules are changing from april 2015 where you will be liable for CGT.
3. Capital gains is not applicable for 6 years in OZ if it is your primary residence.
4. Tax is payable on Income within the UK and any UK income received is required to be disclosed in OZ as well.
5. You should seek professional advice from a Tax professional in both UK and in OZ when making decision as the rules change on a regular basis.
The above is general advice only!! :-)
If you own the home and or have a large amount of equity it may be more viable to keep it as an investment producing income which can be used for retirement and / or buying a house here.
You may need to release equity in a home so you have funds to buy in OZ. You may need to sell up so you can service a loan here if the UK property is negative cash flow.
You may need to sell off as you can not afford to maintain repayments etc.
Notes:
1. Some banks charge you extra for renting out the home than if you living in it.
2. Capital gains is not normally payable until 3 years have passed in the UK. If you a non resident no capital gains is currently payable at all. These rules are changing from april 2015 where you will be liable for CGT.
3. Capital gains is not applicable for 6 years in OZ if it is your primary residence.
4. Tax is payable on Income within the UK and any UK income received is required to be disclosed in OZ as well.
5. You should seek professional advice from a Tax professional in both UK and in OZ when making decision as the rules change on a regular basis.
The above is general advice only!! :-)
Nov 18th 2014, 8:39 pm
#2
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Joined: Mar 2010
Posts: 263
Re: Should I Sell my UK Home or Rent it Out??
If you may consider moving back to the UK later in the future with your partner and have no job to attend once you arrive in the UK the only way you will get your partner in is having £62,500:00 at present.
Depending on your Financial circumstances the only way you will be able to return with your partner if you have no job is to sell your property to gain the £62,500:00 savings to meet Financial requirements to bring your partner in and Financial requirements are required to be met for 5 years.
If you have no intentions to return you do not have to worry about this stage.
I am due to move from UK to US within 6 months and plan to return in approx. 12 years time but would have to sell my property to get my wife into the country to meet Financial requirements.
I consider for a long time shall I rent or sell but as I plan to return I cannot have my own home to return to as if I did rent it then in 12 years time it has to be sold to gain Finances to meet UKBA Financial requirements.
Depending on your Financial circumstances the only way you will be able to return with your partner if you have no job is to sell your property to gain the £62,500:00 savings to meet Financial requirements to bring your partner in and Financial requirements are required to be met for 5 years.
If you have no intentions to return you do not have to worry about this stage.
I am due to move from UK to US within 6 months and plan to return in approx. 12 years time but would have to sell my property to get my wife into the country to meet Financial requirements.
I consider for a long time shall I rent or sell but as I plan to return I cannot have my own home to return to as if I did rent it then in 12 years time it has to be sold to gain Finances to meet UKBA Financial requirements.
Nov 19th 2014, 1:14 am
#3
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Re: Should I Sell my UK Home or Rent it Out??
12 years is a long way away and hard to make decisions based on today's rules. So many unknowns in basing your decision ie change in personal circumstances, laws etc....
If home is paid for it is an asset that can provide financial resources in the future if needed - In the mean time it provides a source of income that could be used to invest and thus provide the required amount in 12 years time so you end up with both a home and the funds for entry fees if required..
A hard call to make - Unable to provide personal advice on this here but I would speak with a professional on your intentions and any other options available to you...
:-)
If home is paid for it is an asset that can provide financial resources in the future if needed - In the mean time it provides a source of income that could be used to invest and thus provide the required amount in 12 years time so you end up with both a home and the funds for entry fees if required..
A hard call to make - Unable to provide personal advice on this here but I would speak with a professional on your intentions and any other options available to you...
:-)
Nov 19th 2014, 10:26 am
#4
Forum Regular
Joined: Mar 2010
Posts: 263
Re: Should I Sell my UK Home or Rent it Out??
Both myself and Fiancée' have known each other for 9 years trying to figure out the best place to live but as you stated Rules and regulations are changing every couple of months over here in the UK so it is hard to plan for the future as I stated you may look out for bridges to cross in the future but by the time you reach that period the bridge has gone and new ones are there in different locations as regulations have changed.
If I rented my property depending on what location you are in will the rent cover the cost of rent or mortgage in the US ?
In my circumstances it will not, but if sold it is enough to buy a good home outright !
As I stated to my friends I may not want to return back to the UK in 12 years time depending on the condition the country is in and by then Financial requirements may be increased again.
If I rented my property depending on what location you are in will the rent cover the cost of rent or mortgage in the US ?
In my circumstances it will not, but if sold it is enough to buy a good home outright !
As I stated to my friends I may not want to return back to the UK in 12 years time depending on the condition the country is in and by then Financial requirements may be increased again.
Last edited by cliff1961; Nov 19th 2014 at 11:12 am.
Nov 20th 2014, 1:21 am
#5
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Posts: 592
Re: Should I Sell my UK Home or Rent it Out??
Sounds like a plan - your own home in a new Country and as stated you never know what happens in the next 12 years. I tell my little Girl home is where Mum and Daddy is!!
All the best in your travels...
All the best in your travels...
