dthomp Posted January 22, 2016 Share Posted January 22, 2016 Hi All, If we were to move out to Australia we would be initially renting our house out and hopefully using some of the income against the rent on an Australian property. Once expenses have been paid here in the UK for our house which will be rented out (mge, agent, repairs etc) is it just a case of converting to dollars and bringing it in to pay against the rented property in Aus, or is it more complex than that.... If anyone has any experience with it your advice would be most welcome. Otherwise can I assume if we had £4000 profit per year, at an exchange rate of 1 - 2 would that give us $8000 in Aus. Kind Regards Dominic Link to comment Share on other sites More sharing options...
NickyNook Posted January 22, 2016 Share Posted January 22, 2016 If you're here on a permanent visa - you will need to declare that income on your Australian tax return and you will be liable for tax on it. You can offset some expenses (eg interest component of the mortgage payment, management fees and the like) but the rental amount is taxable here. If you're here on a temp visa you don't need to declare foreign income. Link to comment Share on other sites More sharing options...
Marisawright Posted January 22, 2016 Share Posted January 22, 2016 If you're here as a permanent resident, then get a valuer to prepare a depreciation report for the property before you start renting it out. It can be tough finding a valuer in the UK who can do it, but you might find something on this thread: http://www.pomsinoz.com/forum/money-finance/160873-depreciation-report-uk-property.html It sounds like it will be a bit of a hassle to get and may be expensive - BUT if your property is fairly new or if you've recently done renovations, it can make a huge difference to the amount of tax you pay. In my case, it meant I paid no tax on my rent whatsoever. Link to comment Share on other sites More sharing options...
AJ Posted January 22, 2016 Share Posted January 22, 2016 Depending on where you live might not last very long, would only do just over 3 months where I live. Link to comment Share on other sites More sharing options...
Guest Posted January 22, 2016 Share Posted January 22, 2016 Stating the obvious but you may end up seeing very little rent anyway - for whatever reason maintenance costs seem to rocket when a property is rented out and once you are out of the country getting new tenants seems to be more difficult for some reason - even using a letting agency. Difficult tenants are way more difficult to deal with from overseas too. Our experience was probably at the most extreme end of the scale but between non-payment of rent and damage to the property we ended up losing about £10k - even last year back in the UK between July 2014 and April 2015 we have just declared a £4k loss on our tax return (& that was with tenants occupying Sept-March). We do have a mortgage on the property though so obviously have to pay that out of the rent. Unless it is definitely a temporary move or you have no choice I wouldn't recommend renting your property out & if you were relying on it to pay rent in Australia then I would seriously rethink your plans. Link to comment Share on other sites More sharing options...
Chortlepuss Posted January 23, 2016 Share Posted January 23, 2016 Where are you based in the UK? I am glad we kept hold of our property in the South East as it would have been challenging getting back into the market - but if you are from an area with reasonable house prices, enabling you to return if you want to - then Id sell. Rent somewhere here temporarily and then buy if you can afford to at all - we have found renting horrendous - quality of houses to rent here in Brisbane very poor compared to those for sale and it's very difficult to settle into a new country when you're being shunted around every 12 months or so according to a landlord's whim Link to comment Share on other sites More sharing options...
dthomp Posted January 23, 2016 Author Share Posted January 23, 2016 Sorry you didn't have a good experience with this. Appreciate your feedback (and everybody else who has replied - thank you). We're lucky that our house is in London, so rent would be very high. But know that we can't rely on it for income completely, as there are costs - including the ones you suffered. Unfortunately we think our only option is a 457, so we'd be nervous to sell straight away... Link to comment Share on other sites More sharing options...
Chortlepuss Posted January 23, 2016 Share Posted January 23, 2016 Sorry you didn't have a good experience with this. Appreciate your feedback (and everybody else who has replied - thank you). We're lucky that our house is in London, so rent would be very high. But know that we can't rely on it for income completely, as there are costs - including the ones you suffered. Unfortunately we think our only option is a 457, so we'd be nervous to sell straight away... Don't sell on a 457, you won't pay Australian tax on your income - and it's not a permanent visa so you really can't guarantee how long you're staying in Aus for....Plus London should guarantee you heaps of rent as you say.... Link to comment Share on other sites More sharing options...
Marisawright Posted January 24, 2016 Share Posted January 24, 2016 Sorry you didn't have a good experience with this. Appreciate your feedback (and everybody else who has replied - thank you). We're lucky that our house is in London, so rent would be very high. But know that we can't rely on it for income completely, as there are costs - including the ones you suffered. Unfortunately we think our only option is a 457, so we'd be nervous to sell straight away... Definitely don't sell if you're on a 457. Think about it - if you got a contract for 4 years in Rome or Paris or Vienna, would you sell your house? That's all a 457 is - a temporary contract, with no guarantees attached. Many people who come on a 457 are hoping to stay - statistics say that only 40% of them succeed. So while you should be optimistic and plan to be part of that 40%, you also need to be prepared for the alternative just in case. Link to comment Share on other sites More sharing options...
Guest Posted January 24, 2016 Share Posted January 24, 2016 Yep agree, despite the downsides don't sell your house on a temporary visa. That said we did - the house we get was only a 'buy to let' and we bought a very similar one for £56k less when we returned - if we hadn't sold before we left we'd be stuck with serious negative equity now so it's a hard call to make - yes keeping a house in London appears a good choice right now but a property crash in two years could leave you wishing you had sold. The drop in house prices in the UK against rises house prices in Australia & a week $ is what enabled us to move back comfortably. Link to comment Share on other sites More sharing options...
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