Guest MatandNic Posted October 31, 2009 Share Posted October 31, 2009 Hi, I really don't expect anyone to be able to answer this for me but I need some input to help me think. I'm within touching distance of a job offer but still waiting for my 176 to come through (just done meds and pcc and yes I'm CSL). Anyhow, I'm trying to do the sums and so far Perth is looking crap for property prices. I've got about £100K equity in my UK house and anything we like the look of in Perth is around the $400K mark. Basically, after making the paying to make to the move it looks like I'd be looking at 50% of my Perth take home going on a mortgage if we buy. With Oz interests rates on the up and the UK (Exchange rates and property prices) looking static at best I'm really worried about the cost of moving. Should I rent in out my UK house (assuming I can + cope with the stress) or sell up, make the move and rent long term? Or try and make the plunge into the Perth property mayhem and take a punt? I'd really like to hear from those of you who've just made the move or are close to it. I like the idea of an adventure but I don't want to f**k it all up on the money front. Link to comment Share on other sites More sharing options...
sgperry Posted November 8, 2009 Share Posted November 8, 2009 hi MatandNic, I'm in a similar position and also been wondering whether to rent and rent or sell and buy. The general advice I've been given (and from several people) is to rent out my house in London for a few years, rather than selling it now - for various reasons. 1 - the exchange rate is currently bad if you're exchanging sterling, but it will eventually get better (ie. over a couple of years, not months) 2 - house prices in the UK will also rise over the next couple of years, so if I hold out, I'll get more both in the sale value and in the Aussie dollars I exchange it for 3 - it gives us an option if for some reason we decide to return to the UK 4 - it means we don't need to buy somewhere quickly when we move to Oz. We will begin in Sydney but might end up moving to Melbourne, say, in 12 months' time if we can't cope with Sydney weather. I guess another scenario if you can afford it might be to take over a lump sum of cash as a deposit, and buy a place in Perth where you can cover a large part of the mortgage with your rental income from the UK. To be honest, that's probably the option I am going to go for. If you rent out your place in the UK, go with a rental agency. For a fee (which is deductable from the rental income for tax purposes) they will vet tenants, deal with day to day things and relieve you of the stress of it all. good luck, sg Link to comment Share on other sites More sharing options...
Mongrel Posted November 8, 2009 Share Posted November 8, 2009 Hi, I really don't expect anyone to be able to answer this for me but I need some input to help me think. I'm within touching distance of a job offer but still waiting for my 176 to come through (just done meds and pcc and yes I'm CSL). Anyhow, I'm trying to do the sums and so far Perth is looking crap for property prices. I've got about £100K equity in my UK house and anything we like the look of in Perth is around the $400K mark. Basically, after making the paying to make to the move it looks like I'd be looking at 50% of my Perth take home going on a mortgage if we buy. With Oz interests rates on the up and the UK (Exchange rates and property prices) looking static at best I'm really worried about the cost of moving. Should I rent in out my UK house (assuming I can + cope with the stress) or sell up, make the move and rent long term? Or try and make the plunge into the Perth property mayhem and take a punt? I'd really like to hear from those of you who've just made the move or are close to it. I like the idea of an adventure but I don't want to f**k it all up on the money front. Do you wanbt to live here or play at it (typicasl caxhed up pom) . Its a questioin of all in or hedge yior bets Link to comment Share on other sites More sharing options...
Guest cyclone41 Posted November 8, 2009 Share Posted November 8, 2009 hi MatandNic, I'm in a similar position and also been wondering whether to rent and rent or sell and buy. The general advice I've been given (and from several people) is to rent out my house in London for a few years, rather than selling it now - for various reasons. 1 - the exchange rate is currently bad if you're exchanging sterling, but it will eventually get better (ie. over a couple of years, not months) 2 - house prices in the UK will also rise over the next couple of years, so if I hold out, I'll get more both in the sale value and in the Aussie dollars I exchange it for 3 - it gives us an option if for some reason we decide to return to the UK 4 - it means we don't need to buy somewhere quickly when we move to Oz. I would totally agree with the above. Uk property can only get better in the medium to long term and the rental income, especially from a property in London, will produce great returns. Australian property cannot keep rising at its current rate and if it does not experience a downturn it will probably remain stagnant for a few years. Renting here should work out cheaper than a mortgage and will give you greater flexibility to move around. Link to comment Share on other sites More sharing options...
gpo1971 Posted November 9, 2009 Share Posted November 9, 2009 A report in the West Australian a few weeks ago predicted a house price boom in Perth over the next 3 years. Prices have gone up 7% this year and the report said double digits next year. Link to comment Share on other sites More sharing options...
zippyderby Posted November 9, 2009 Share Posted November 9, 2009 we too have been wondering about the scenarios above. Does anyone know the tax implications, or any other implications for that matter, of keeping your Uk property and renting it out whilst you move to Oz? zippy Link to comment Share on other sites More sharing options...
ck10_9 Posted November 10, 2009 Share Posted November 10, 2009 We still have our property in the UK and have been renting here for 3 nearly 3 yrs. There are tax implications - The Aussie Tax office want to know and so do the Inland Revenue What we are finding though is, after mortgage, insurance, and gas cover there is no profit to tax on. In fact we make a loss. Renting from the other side of the world can be a challenge - the house flooded and without help of friends and family it would have been difficult to sort - Barring a disaster like that though, get yourself a good agent and it really isn't that hard I wouldn't move my money from UK to OZ at the moment anyway - exchange rate is as bad as it's been for a very long time. My advice - wait and rent It is a difficult one though... Link to comment Share on other sites More sharing options...
Guest raider08 Posted November 10, 2009 Share Posted November 10, 2009 We still have our property in the UK and have been renting here for 3 nearly 3 yrs.There are tax implications - The Aussie Tax office want to know and so do the Inland Revenue What we are finding though is, after mortgage, insurance, and gas cover there is no profit to tax on. In fact we make a loss. Renting from the other side of the world can be a challenge - the house flooded and without help of friends and family it would have been difficult to sort - Barring a disaster like that though, get yourself a good agent and it really isn't that hard I wouldn't move my money from UK to OZ at the moment anyway - exchange rate is as bad as it's been for a very long time. My advice - wait and rent It is a difficult one though... Sorry to sound stupid (but its all a mine field to me!), but is our mortgage, building/contents insurance, agency fees etc., tax deductable from the rental income? Made renting out our property a viable option if it is. Link to comment Share on other sites More sharing options...
Guest Posted November 10, 2009 Share Posted November 10, 2009 Sorry to sound stupid (but its all a mine field to me!), but is our mortgage, building/contents insurance, agency fees etc., tax deductable from the rental income? Made renting out our property a viable option if it is. Assuming you are in the UK, interest on the mortgage is (not capital repayments) and everything else you mentioned as well as depreciation (or actual repair costs - your choice). A good accountant will sort it all out for you. Link to comment Share on other sites More sharing options...
sgperry Posted November 10, 2009 Share Posted November 10, 2009 If its any help, I found out the following information today from my mortgage company (Nationwide) and from a local letting agent: - mortgage interest payments, but NOT capital payments, are deductible from any rental income - in the case of Nationwide, you don't need to change mortgage product, pay extra interest and so on if you rent the property for less than 3 years. If for more than 3 years, you just need to apply to extend it. - the letting agent will charge a service charge, which is also tax deductible from the rental income - repairs are also tax deductible - my local agent charges 15% service charge, which covers 2 inspections a year, credit checks, inventory, gas safety cert, EPC as well as rental collection and payment - you need to complete two forms - one for Inland revenue and one for overseas lettings (or something). They are sending me the forms, and when I get them I will add details here in case it helps hope some of that is of help, regards sg Link to comment Share on other sites More sharing options...
ck10_9 Posted November 11, 2009 Share Posted November 11, 2009 Sorry to sound stupid (but its all a mine field to me!), but is our mortgage, building/contents insurance, agency fees etc., tax deductable from the rental income? Made renting out our property a viable option if it is. As Julie said above - yes Link to comment Share on other sites More sharing options...
Guest HereAtLast Posted November 11, 2009 Share Posted November 11, 2009 FWIW, I have a lot of faith in the UK housing market. Yes, it was massively overpriced and will likely take some time to regain its footing, but we have decided to keep our properties running there and are looking to increase our portfolio on that side over the next year or so. There are some phenominal deals to be had if you look around and finding money for them isnt nearly as difficult as it was a little while ago. There is no doubt that Perth is going to see another boom in the near future. Everywhere you look people are gearing up for it. All in all i dont think you'll go far wrong doing either. As for GBPAUD, well who knows? One would hope that it has bottomed out, but I shudder when i hear the words "it can't get any worse". That type of talk has made many a person bankrupt. The bottom line is, if you want to cut ties and reduce Admin, (which there is a heap of trying to manage properties from afar) then sell up and get your butt out here to get yourself set for the next boom... Buy yourself a piece of this wonderful country and settle down with the kids. If you dont mind the Admin and feel optimistic on the Pound then get yourself a good managing agent and move out. Or if you think like Robert Kiyosaki, (Rich Dad Poor Dad) why dont you try to do both? Release some equity on your property in the UK, (if the numbers stack up, which if you have 100k in it, they should), rent it out, and use the freed equity to buy a place on this side also. That way you capitilise on two properties on the front end of a recovery. Jason _________________________________ To know and not to do is not to know Infinite Ability Link to comment Share on other sites More sharing options...
Guest Jane123 Posted December 10, 2009 Share Posted December 10, 2009 I think it's really a case of half a dozen and 2 3s. when the papers talk about W.A being 25000 houses short, Perth in for another property boom, bigger than the last one. All the trades in the building industry are flat out, my partner is a painter and has just taken on someone. The buliders he is working for all say next year is going to be crazy, plus we will again have plenty of workers going north for the big bucks. So in waiting for the u.k market to go up, you may well be paying a lot more for a house in 2 years. The houses in the area that I live in- Mindarie are flying out the door. Hope this helps and good luck! Jane Link to comment Share on other sites More sharing options...
Guest usinthesun Posted December 28, 2009 Share Posted December 28, 2009 Hi, I really don't expect anyone to be able to answer this for me but I need some input to help me think. I like the idea of an adventure but I don't want to f**k it all up on the money front. Look at life in terms of risk and it makes the decision easier. Me and my partner moved out to Perth Feb '09, we rented our house out in Leeds which had fell back down to the price we bought it for 3 years prior due to recession. Before we left, we weighed up the exchange rates and associated costs and a guessed how long it would take for the markets to pick back up in UK and made the decision keep house and come out with nothing. Getting here I so happy we made that decision, coz we didn't realise how hard it is to move country can be and 11 months on I don't think we have been many days where we are not seriously thinking of moving back. In saying this what I am trying to say is the costs of selling, transferring your money to AUS, purchasing a new house and then if things get to hard (personally). You will have to sell in AUS, transfer the money back to England. With all the exchange rates and agent fees you are going to be so far behind. Unless you are 1 in a million who are lucky enough to fit straight in to new country (secure job, making new friends, comfortable in new surroundings). I would suggest rent your place out through an agent. If you wanted to risk it. Property prices are set to boom here in next three years (as is cost of living), the recession only really hit the East coast of Australia, if you are thinking of coming to Western Australia the cost of living here is more comparable to London. 1 Pint of in Perth cosmopolitan area £5 in suburb areas around £4. Hope this helps with your decision. Link to comment Share on other sites More sharing options...
Guest JoBanana Posted December 29, 2009 Share Posted December 29, 2009 If you decide to keep your house in the UK, you should definitely consider releasing some equity from it before you leave the UK so you have some spare cash to bring to Australia with you. I have a friend who tried to release equity after she got here and she has not been able to pursuade UK banks to lend to her now that she's not a UK resident. The interest you pay on the additional loan will be tax deductible against your rental income in the UK. Also if your expenses exceed your rental income, you can claim excess loan interest paid in the UK against your Australian earnings so reduce your tax bill over here. A lot of people don't put their UK rental income on their Australian tax return thinking they don't need to bother as their is no profit. The UK and Australian tax rules relating to rental properties are not the same so not only is this illegal, but it possibly means people may lose out on tax deductions they could otherwise claim in Australia. You will need to get your UK property valued at the date you arrive in Australia if you are coming on a permanent visa as you will have to pay Australian capital gains tax when you sell it - but only on the increase in value from the date you arrive (or the date you get your permanent visa if you arrive on a temp visa). If you leave the UK permanently, you will not have to pay UK tax when you sell the property. Hope this is helpful. Link to comment Share on other sites More sharing options...
Guest fluffymum Posted December 29, 2009 Share Posted December 29, 2009 Me personally....youre either coming here for good or you arent! We cut our losses in the UK with the house and took a 50k drop in price to get rid, just so we can put permanent roots here. I think there is too much temptation for people to go back if they still have their property in the UK. Life here is not a bed of roses, but wouldnt you sooner be skint in the sunshine where most things you can do are free, or sat in a dark, wet and miserable house in the UK and cant afford to go out.....so me personally, cut any losses and get settled here. Link to comment Share on other sites More sharing options...
Steve99 Posted January 7, 2010 Share Posted January 7, 2010 Anyone here remember Perth between the resource booms?, a period of over 30 years where the place was a backwater in every sense of the word. One day it will be this again when the boom is over and the carry trade(money borrowed in US/Uk etc at 1/2% and lent to Oz banks at 3.75%) currently pushing up both property on account of lots of free mortgage money for the banks (foreign borrowing = 30% of the mortgage market for the banks, transparent to us) and propping up the value of the oz dollar in a big way. So remove the resource boom (this will happen one day) and the carry trade and Perth will be a poor island at the arse end of a bit of sand with a currency worth 1/2 of todays value and housing prices to match. Make what you will of this information, it will happen but like all booms and busts, we dont know when, 1 year or 5, who knows? We sold up in the UK and came back to Aus to be near sick family, most of our money is in the UK and we dont see any point in deleting half of its value by bringing it over right now, but once again who knows what will happen, in 1982 the pound was worth only around $1.35. Anyone got a crystal ball? Link to comment Share on other sites More sharing options...
Guest valroy Posted January 13, 2010 Share Posted January 13, 2010 Not sure where you are with your plans but we are looking for a house swap from Perth to UK July-Dec 2010. Maybe we could help each other? House in Perth is in Pt Kennedy, 10min walk to beach, 3 bd 2 bath. Link to comment Share on other sites More sharing options...
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