Mollie007 Posted November 30, 2013 Share Posted November 30, 2013 Hi everyone I would appreciate if someone can give me some good advice please? I recently become a PR in Oz and have rented out my little one bedroom place back in the UK over 18mths. I have noticed the current UK house market is booming and looks like will be in the coming years. The exchange rate GBP to AUD is also going up too. I really can't decide what to do in the new year whether to keep it or sell it? I find renting the property out can be a nightmare especially when you have a demanding tenants and unhelpful agent! My contract with my current tenants end by June 2014 but I can give them notice in advance if I decide to sell it. My current job in Oz is an on going contract so I'm not in a secure position. I also heard you have to pay capital gain tax in UK if you have rented out your property over 3 years in UK? I would like to buy my own property one day in Oz if I'm in a better secure job too. Any advice would be great! Love to hear from you all :biggrin: Link to comment Share on other sites More sharing options...
footballnotsoccer Posted November 30, 2013 Share Posted November 30, 2013 Hi, nice to hear you have a property in U.K. well done for buying it...!!! We have a house and 2 flats in U.K. and I have thought of selling up and moving to Oz, as you seem to be thinking .. I am now in the frame of mind to go back to U.K. for a few years and am VERY glad that I rented them out and didn't sell......you never know if you want to get back to U.K. maybe wait until you get citizenship before you think again....... I believe that you can avoid the tax if you live in it for a few (3..??) months as it becomes your family home, you need expert advice on that, Where in U.K is your flat..??? Link to comment Share on other sites More sharing options...
Gbye grey sky Posted November 30, 2013 Share Posted November 30, 2013 We will definitely sell our house when we move because: a) don't want the aggravation of dealing with a property from thousands of miles away, b) want to buy a home where we are living and settle, c) if we moved back to the UK in the future we would not want to move back to our old house anyway and d) have never looked at our house primarily as an investment as some seem to but as a place to call our own and a home. Clearly it is a personal decision. You will have heard probably that property values are on the up however there are major regional variations. Summer is normally the best time to sell so in your place I would definitely consider selling next June and taking the money to Oz if the exchange rate keeps improving particularly. Link to comment Share on other sites More sharing options...
Mollie007 Posted November 30, 2013 Author Share Posted November 30, 2013 Hi footballnotsoccer, Thanks for your advice. I do hope to move back when I'm retired but thats long long way to go! Is it worth to have two mortgages one in UK and one in Oz in the future? Do you know anything about capital gain tax after rented out for 3 years? My little one bed room house is in a very nice quiet area Link to comment Share on other sites More sharing options...
Mollie007 Posted November 30, 2013 Author Share Posted November 30, 2013 Hi Gbye grey sky Thanks for your advice. The above points you pointed out is exactly the same as how I feel too. Do you think is not worth to have a mortgage on both countries? Also I like to start a family here when my job is more secure :cute: what is your situation? Link to comment Share on other sites More sharing options...
mickinqld Posted November 30, 2013 Share Posted November 30, 2013 Hi Mollie. From what you've said, things I would consider: Getting a new agent and new tenants. When it's a good team you can near enough forget about it. the cost of selling and buying is a big overhead with agents, stamp duty, other costs. the pound is on the rise (and may continue), the long you have finances in the uk, the more it's worth. sounds like a good area it's in.....in the boom area of the uk I take it? But also depends how useful it would be to have that cash from a sale available in australia. best of luck as a huge decision. Link to comment Share on other sites More sharing options...
footballnotsoccer Posted December 1, 2013 Share Posted December 1, 2013 Hi footballnotsoccer,Thanks for your advice. I do hope to move back when I'm retired but thats long long way to go! Is it worth to have two mortgages one in UK and one in Oz in the future? Do you know anything about capital gain tax after rented out for 3 years? My little one bed room house is in a very nice quiet area in Berkshire also my first home... Hi, it is a personal choice though, there are a lot of problems with rentals/mortgages being so far from home, expert advice is worth seeking re cap gains tax.........make sure you save up some money anyway, probably good to stay on the property ladder either in OZ or U.K. Where abouts in OZ are you.???? Link to comment Share on other sites More sharing options...
Mollie007 Posted December 1, 2013 Author Share Posted December 1, 2013 Planning to go back for holiday next year. Link to comment Share on other sites More sharing options...
Mollie007 Posted December 1, 2013 Author Share Posted December 1, 2013 Thanks for your advice Link to comment Share on other sites More sharing options...
doubter Posted December 1, 2013 Share Posted December 1, 2013 Hi everyoneI would appreciate if someone can give me some good advice please? I recently become a PR in Oz and have rented out my little one bedroom place back in the UK over 18mths. I have noticed the current UK house market is booming and looks like will be in the coming years. The exchange rate GBP to AUD is also going up too. I really can't decide what to do in the new year whether to keep it or sell it? I find renting the property out can be a nightmare especially when you have a demanding tenants and unhelpful agent! My contract with my current tenants end by June 2014 but I can give them notice in advance if I decide to sell it. My current job in Oz is an on going contract so I'm not in a secure position. I also heard you have to pay capital gain tax in UK if you have rented out your property over 3 years in UK? I would like to buy my own property one day in Oz if I'm in a better secure job too. Any advice would be great! Love to hear from you all :biggrin: If you are sure you want to stay in OZ permanently sell it and cut ties with the UK otherwise you will always have one foot in the UK.It will make going back to the UK an easier decision if you have a property, as I did. I found dealing with tenants so far away is an hassle you could do without. Link to comment Share on other sites More sharing options...
footballnotsoccer Posted December 1, 2013 Share Posted December 1, 2013 HiI'm planning to go back for holiday in Spring, perhaps I will decide what I want to do? But think in my heart UK is always my home. I'm on the GC feeling half brain dead, planning to move to the city. How about you footballnotsoccer? Where are you based?? Hi, I lived on the SC for a while, Noosa, V nice but......... at the moment I am in SW Melbourne, near the sea and v nice, wifey has not gelled with a career/job so we need to move on, a bit of a shame but at least we have options which is good and bad at the same time....that is another story,,,haha good luck anyway....what do you do for a living.?? Link to comment Share on other sites More sharing options...
Gbye grey sky Posted December 1, 2013 Share Posted December 1, 2013 Hi Gbye grey skyThanks for your advice. The above points you pointed out is exactly the same as how I feel too. Do you think is not worth to have a mortgage on both countries? Also I like to start a family here when my job is more secure :cute: what is your situation? Hi Mollie My situation is completely different. My wife is an Aussie citizen (British by birth) and we have a 9 year old daughter (also with dual citizenship). We are in our 50s and mortgage is now paid off. We could manage to keep UK house and buy in Australia also but for reasons above see no real gain in doing so. A small one bed house in Berkshire will probably remain a sound investment and probably easy to let. It all depends if you need the equity to buy a home in Australia but it sounds as though you may not be committing there long term at the moment. You are right about the 3 year rule on CGT but suggest you look at the rules if you move back and live in it as that may negate CGT. Importantly though not if you buy a property in Australia I believe as technically the UK house would the be your 2nd home. Proper advice needed. Essentially neither keeping or selling would be bad decision. Just depends on your personal circumstances at the time. Link to comment Share on other sites More sharing options...
Mollie007 Posted December 2, 2013 Author Share Posted December 2, 2013 Hi Gbye grey sky Thanks for your reply. Planning to go back for holiday in Spring and see how I feel. Eventhough I might keep the house I don't think I can live in the same house again due to the small space especially If I'm planning to have children. Some of my friends suggested if I dont live in the house again then sell it. Also when I was leaving UK the estate agent advised me to fill in a non-resident scheme tax form which I did. Can I not let the tax office know after 3 years that I still renting the place out? Link to comment Share on other sites More sharing options...
Mollie007 Posted December 2, 2013 Author Share Posted December 2, 2013 Hi footballnot soccer Link to comment Share on other sites More sharing options...
Paul1Perth Posted December 2, 2013 Share Posted December 2, 2013 Sell it while the exchange rate is pretty good and the housing market has picked up a bit. You may as well have a worry off your mind and some cash to spend here. Link to comment Share on other sites More sharing options...
Mollie007 Posted December 2, 2013 Author Share Posted December 2, 2013 Hi Paul Yeah I do get tempted with the current rate and housing market! still can't decide!! Urggh just worried in the future I want to move back, but I can't see myself live in the same house again as it's too small. :unsure: Link to comment Share on other sites More sharing options...
Gbye grey sky Posted December 2, 2013 Share Posted December 2, 2013 Hi Gbye grey skyThanks for your reply. Planning to go back for holiday in Spring and see how I feel. Eventhough I might keep the house I don't think I can live in the same house again due to the small space especially If I'm planning to have children. Some of my friends suggested if I dont live in the house again then sell it. Also when I was leaving UK the estate agent advised me to fill in a non-resident scheme tax form which I did. Can I not let the tax office know after 3 years that I still renting the place out? I would expect you to be doing a self assessment each year declaring the gross rental income less mortgage interest, fees, expenses etc and declaring any profit or loss. You may also have to declare on an Oz tax return but this is dependent on your visa status I believe. You would get credit on that Oz return for any UK tax paid. If you were PR then the sale may attract CGT in Oz rather than UK so that would make any UK exemptions irrelevant. I really would suggest you take advice on the tax side as that may well influence your decision about what is best for you. Life is a little more complicated when you have income in 2 countries; think I will add that to my list of reasons for selling lol. Link to comment Share on other sites More sharing options...
Guest Posted December 2, 2013 Share Posted December 2, 2013 Without reading the detail of your post my first response was, sell - after reading your post, I am sticking with that. Renting a house out whilst 1000s of miles away is a nightmare waiting to happen, especially if you haven't got an excellent agent. Even with good tenants it makes life more complicated - if you really want an investment property buy one in Australia where you are already resident for tax purposes and where you can easily attend to matters if there are problems with agent/tenant/court etc. Link to comment Share on other sites More sharing options...
jimmyay1 Posted December 3, 2013 Share Posted December 3, 2013 I have kept my property in the UK since i moved down to Oz. Its in London and has gone up in value. i also have this dilemma. Capital gains tax would suck so may need to sell it within 3 years. I'm not keen to return to the UK at all but i like the security of having a property there as you never know what might happen. fortunately we have a good local agent and the tenants are really nice and i work in the property industry myself and know tradies in london, so it being thousands of miles away doesnt freak me out in the slightest. all i need to do is make sure the agent does their job property . The tenant also knows to email me with anything if not getting any joy out of the agent. It's a good relationship. The big downside is that if i'd cashed in i would be looking at buying a bigger property here than i currently am. but you can't have everything. will probably keep the UK property as an investment, long term, and hopefully find a way around CGT when the time comes to sell i suppose. Link to comment Share on other sites More sharing options...
jen85 Posted December 4, 2013 Share Posted December 4, 2013 If you can afford to keep it then I would, the market is rising over there and you never know what will happen in the future. Link to comment Share on other sites More sharing options...
PollyGirl Posted December 4, 2013 Share Posted December 4, 2013 Mollie I think that if the property is rented for 2 years capital gains tax comes in to force.. I had a nightmare agent who was 'let go'.. now got another one .. she's ok but still does not send on information.. one of my neighbour's alerts me... and has done so quite often. I want to hold on to my little house for as long as I can ... my situation is different came here to join my partner and still have good and bad days, where I get home sick.. have driven to the airport a couple of times. It's early days... but always imagined retiring in it... don't know whether I could afford anywhere here, not on our wages. Keep your options open ..... Link to comment Share on other sites More sharing options...
Mollie007 Posted December 4, 2013 Author Share Posted December 4, 2013 Hi Pollygirl1 I am in exactly same position as you! Still not settling here, Get home sick..Just alot of headache dealing with unhelpful agent and demaning tenants! At amoment it it like a monthly things need to get done by the house and I'm so far away. (which I have to folk out from my own pocket).I do wonder wherther the tenants damaged thing on purpose, they asked for unnecessary thing and want everything New!Also the agent getting rude and seems on their side!! Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.