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renting house in uk whilst living in australia


rider3

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Hi all

 

Just wanting a bit of advice. We are hoping to move over to oz in 2015 (saving and sorting things over here) we will b looking to rent our property out over here and also rent a property in oz. We have not been landlords before however family experience has proven estate agent handling of the property is a must does anyone have any good advice for us and also the rental income will b substantially higher than the mortgage so does this cause any issues on either side.

 

Thanking u in advance

 

Xxx

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Guest scrumpy

Im doing the same now, all new to us aswell.

I think we have found the right agent, he is full of advice, tennants seem really nice (but so is everyone when they want something!)

There are some "overseas landlord" forms to fill out, just trying to find more out about that at the moment.

The quote to go from house insurance to landlord insurance was pretty painless.

The biggest prob Ive had so far, is that because my water main feeds my house and land, which is rented out seperatley, I have now got to bring a new water main in just for the house, and with 5wks to go, could be a bit of a push!

Im in the "trade" so the EPC/gas/oil/electrical cerificates are easy to get

 

The other thing which didnt cross my mind, is that Ive been advised to have the place valued, and in the event we sell years down the line, we/you will be liable for Capital Gains Tax. If you dont get an value before you leave, the Ozy Govt estimate its value, and you pay Capital gains on the difference form when you left UK and when you sell, Im assuming thats only the case if you stay in Oz

If rental after mortgauge and other expenses is higher, you will pay tax on the difference, but you can use your personal tax allowance over here, but in Oz you also need to declare all your world wide earnings. I believe one will off set the other, so we will not be taxed twice on the same income

All in all, as with everything there is more to it than I thought

Still it will generate me an income, and also means no bridges have been burnt in the UK

If you pick up any tips, then please let me know

Cheers

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Hey Scrumpy

 

We're in the same situation as you, just I the process of renting our property out. Can I ask when you got the valuation on the property was that from a normal estate agent? Also did you ask them to write this down on any official paperwork so if you do decide to sell you have proof or do you just have to know the figure for future reference?

 

Thanks DSouzas

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You need to fill out the NRL1 form. It gives the estate agent the ok from HMRC not to deduct tax from your rental earnings.

 

Any uk earnings from your property go onto your Aussie tax return.

 

Off the profits you can deduct all expenses.

 

Mortgage interest, service charges, repairs, insurance, management fees, safety certificates, ground rent etc.

 

 

Although our tax agent here is always a bit perplexed by the notion of ground rent.

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