paulswin Posted March 31, 2018 Share Posted March 31, 2018 (edited) Has anyone rented their house out and moved back to uk? We have ours up for sale but no one putting in offers yet so we’re thinking should maybe rent it out for a year or two whilst we are in UK, we won’t make any money but if we can’t sell we don’t have a lot of choice! I worry house won’t be sellable after renters! Edited March 31, 2018 by paulswin Quote Link to comment Share on other sites More sharing options...
newjez Posted March 31, 2018 Share Posted March 31, 2018 2 hours ago, paulswin said: Has anyone rented their house out and moved back to uk? We have ours up for sale but no one putting in offers yet so we’re thinking should maybe rent it out for a year or two whilst we are in UK, we won’t make any money but if we can’t sell we don’t have a lot of choice! I worry house won’t be sellable after renters! Are you in Perth Paul? Quote Link to comment Share on other sites More sharing options...
Parley Posted March 31, 2018 Share Posted March 31, 2018 Any house will sell if it is priced appropriately. If you are not getting anyone interested it is a clear sign that you have priced it much too high for the market you are in. 2 Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted March 31, 2018 Share Posted March 31, 2018 Agree with Parley. Unless you are confident that there will be a spike in house prices in your area in the next year or two (or you may return) then just price it to sell...or it will become an albatross round your neck. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 31, 2018 Share Posted March 31, 2018 You'll always hear the horror stories about what renters can do, but I had investment properties for fifteen years and never had any major problems. You need a good agent who will actually do their job. You need to insist on making the final choice of tenant yourself, based on reference checks. The other important thing is that your property needs to be in a nice area. Look around you - what kind of people live in your area? If it's the kind of suburb and house that will attract a professional family, then you'll probably be fine. If it's the kind of suburb where renters are mobs of students, or bogans, then you're taking a risk. Quote Link to comment Share on other sites More sharing options...
paulswin Posted March 31, 2018 Author Share Posted March 31, 2018 Hi newjez yes we’re in Perth! Parley we have a 5 bed house and it’s been priced way less than what we paid for it so not over priced. Estate agent said it’s slow going at the moment selling a house! It’s only been up 8 weeks but want to just get on with life and move back now! 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 31, 2018 Share Posted March 31, 2018 The other thing to consider is capital gains. The rules have changed. While you're a resident of Australia, you don't pay capital gains on the sale of your home. However once you're a non-resident, that no longer applies. If you sell your home after May 2019, you'll have to pay capital gains tax on the profit (the profit is the selling price minus the price you bought it for). Quote Link to comment Share on other sites More sharing options...
paulswin Posted March 31, 2018 Author Share Posted March 31, 2018 Oh wow didn’t know that! We would be taking a loss though! Quote Link to comment Share on other sites More sharing options...
Parley Posted March 31, 2018 Share Posted March 31, 2018 9 minutes ago, paulswin said: Hi newjez yes we’re in Perth! Parley we have a 5 bed house and it’s been priced way less than what we paid for it so not over priced. Estate agent said it’s slow going at the moment selling a house! It’s only been up 8 weeks but want to just get on with life and move back now! It can still be overpriced even if less than you paid. Perth property market has been hit hard, so what matters is what similar 5 bed houses to yours have been selling for. It is a hard choice whether to rent or sell. But if you will then have to rent yourself in the UK it may be best just to sell and take the loss. 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 31, 2018 Share Posted March 31, 2018 (edited) 21 minutes ago, paulswin said: Oh wow didn’t know that! We would be taking a loss though! If you're taking a loss then it won't matter. If you decide to rent it out, you'll have to complete an Australian tax return each year and you will be taxed on the rental income. Non-residents don't get ANY tax-free threshold, so you'll pay tax on the whole amount. You'll also need to declare the rent on your UK tax return but you'll also declare the tax paid in Australia, so you don't get taxed twice. I'd suggest sitting down and doing the sums. How much income will you get from rental (after tax and agency fees) and will that cover your mortgage and rates? If so, maybe it's worth holding on to it. If not, then you're only going to be making more losses. Edited March 31, 2018 by Marisawright 1 Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted March 31, 2018 Share Posted March 31, 2018 2 minutes ago, Parley said: It can still be overpriced even if less than you paid. Perth property market has been hit hard, so what matters is what similar 5 bed houses to yours have been selling for. It is a hard choice whether to rent or sell. But if you will then have to rent yourself in the UK it may be best just to sell and take the loss. Yes, unfortunately your choice may come down to taking the loss now or taking the loss later. Even worse if rental income does not cover mortgage, rates and agent fees. You will not have negative gearing to limit the loss either. 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 31, 2018 Share Posted March 31, 2018 (edited) One more thing - are you getting many viewings? If not, take a look at the photos online - has the agent done a good job of presenting the house (be honest, would you buy it if you saw those photos?). These days, a LOT of people make their decisions based on what they see on the internet - they'll only go and inspect the one or two best houses and dismiss the rest. So your house has to look stunning online. Basically, if your agent just came and took photos of your house "as is", and you didn't spend the day before staging each room to make it look beautiful, he needs to come and do them again. If you are getting viewings but people aren't making offers, ask yourself why. It always amazes me how shallow people are when it comes to looking at houses. You'd think they'd be able to see past the owner's stuff and imagine themselves in the house, but it's astonishing how many people can't. Since you know you're going, I hope you've already got half your stuff packed up so the house is ruthlessly decluttered. And the boxes aren't in the spare room, they're in the garage or in storage somewhere. A really important thing is to hide ALL pictures of yourself and your family. Silly, but it works. Edited March 31, 2018 by Marisawright 3 Quote Link to comment Share on other sites More sharing options...
newjez Posted April 1, 2018 Share Posted April 1, 2018 2 hours ago, Marisawright said: The other thing to consider is capital gains. The rules have changed. While you're a resident of Australia, you don't pay capital gains on the sale of your home. However once you're a non-resident, that no longer applies. If you sell your home after May 2019, you'll have to pay capital gains tax on the profit (the profit is the selling price minus the price you bought it for). Not much of a problem in Perth sadly. Quote Link to comment Share on other sites More sharing options...
newjez Posted April 1, 2018 Share Posted April 1, 2018 11 hours ago, paulswin said: Has anyone rented their house out and moved back to uk? We have ours up for sale but no one putting in offers yet so we’re thinking should maybe rent it out for a year or two whilst we are in UK, we won’t make any money but if we can’t sell we don’t have a lot of choice! I worry house won’t be sellable after renters! I know @verystormy left and left his house with an agent to sell. Could be a third option. Letting a house long distance can be a pain unless you have local people that you trust to sort issues. Quote Link to comment Share on other sites More sharing options...
paulswin Posted April 1, 2018 Author Share Posted April 1, 2018 verystormy must be rich lol we couldn’t afford to do that still have mortgage each month to pay unless we win that lotto shortly! Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 1, 2018 Share Posted April 1, 2018 1 minute ago, paulswin said: verystormy must be rich lol we couldn’t afford to do that still have mortgage each month to pay unless we win that lotto shortly! Far from rich. Dictated by necessity as returning with a job to go to, I understand. And he left Perth and took a big hit too. Far better imo to sell while here as houses empty of furnishings are generally less appealing and fetch lower prices. Quote Link to comment Share on other sites More sharing options...
ali Posted April 1, 2018 Share Posted April 1, 2018 Our friends rented their property in the UK but didn't use an agent, they found the time difference a great difficulty when their tenant stopped paying rent and dealing with solicitors etc. As others have said if you go down the renting path, find a good agent to give yourselves peace of mind. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 1, 2018 Share Posted April 1, 2018 17 minutes ago, paulswin said: verystormy must be rich lol we couldn’t afford to do that still have mortgage each month to pay unless we win that lotto shortly! Take a look back in the forums and you'll find that's very far from the case. They didn't have a choice, sadly. You do have a choice, I assume. Like I said, I'd recommend the following course of action: 1. Make sure your house is presented at its absolute best, both at inspections and online. I know some people poo-poo shows like Selling Houses Australia (where they tizzy up houses and they sell for more money) but if you've ever been in the industry, you'll know it really does work. As GbyeGreySky says, a totally empty house doesn't sell as well - but a house that's full of someone else's s.... won't sell either. It is really, really, really important to clear the decks of everything non-essential or personal, and keep what's left spotlessly tidy and clean. 2. Sit down and do the sums. How much rent will you get, how much will rates and landlord insurance and agent fees cost, then work out what it comes to after tax. Is it enough to cover your mortgage, with a buffer to pay for repairs etc? If so, then it might be worth renting it out - but only if you think the Perth market is likely to improve within your timeframe. You'll always get real estate agents talking it up, but most of the experts expect very modest rises over the next three years. So I wonder whether it will help. Your other option, of course, is to delay going back to the UK for another few years, I don't imagine that's what you want to do. Quote Link to comment Share on other sites More sharing options...
newjez Posted April 1, 2018 Share Posted April 1, 2018 (edited) 6 hours ago, paulswin said: verystormy must be rich lol we couldn’t afford to do that still have mortgage each month to pay unless we win that lotto shortly! I guess you could also consider the legal implications of handing your keys back to the bank. If the house is worth less than the mortgage. I don't believe it is as simple as it is in the UK. Not that it is simple in the UK, but I heard of people doing it in the nineties and GFC. You would probably want to take advice before doing anything drastic. But if letting, you need to think what would happen if you can't get tenants for a period. If selling, you may have to reduce and take a hit. If the mods allow you could post a link of your home on here. Someone may be interested in buying or a short term rental. Or we could offer constructive criticism. The Perth market goes in fits and spurts. It may rise next year, but it's equally likely you won't see upward movement for five to ten years. Edited April 1, 2018 by newjez Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 1, 2018 Share Posted April 1, 2018 As mentioned, we moved back and left the house to sell while in the UK. We were certainly not rich. In fact totally broke. I was out of work and had a job offer in the UK and found ourselves going from being offered the job on the Tuesday to getting on a plane Saturday! We spoke to the bank and informed them, but we had already been having conversations with the bank as we were struggling to pay the mortgage. The house sold about three months after we returned. It sold for a LOT less than we had spent building it. Fortunately when we got the mortgage we had less than 20% deposit - from memory it was 15% and the bank had insisted on mortgage insurance which kicked in and paid off the loss we made on the house sale. The sale from the UK was easy and mostly done by email. Though the end of the process does involve getting documents stamped at Australia House in London. Which they do charge several hundred for the privilege 3 Quote Link to comment Share on other sites More sharing options...
paulswin Posted April 2, 2018 Author Share Posted April 2, 2018 I think we’ll hold out to sell it! Did the number crunching to rent and we’d be out of pocket lots! How long was your house on the market for verystormy? We’ll come outwith equity but still lost loads! Have you bought a house in the uk or are renting? Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 2, 2018 Share Posted April 2, 2018 We lost a huge amount. It was on the market for maybe 4 months, during which I think we had one couple turn up for a viewing, despite being open every weekend. No, we haven't bought yet as when we arrived we were literally down to nothing after being unemployed for a fair few months. Hoping to this year. Quote Link to comment Share on other sites More sharing options...
BacktoDemocracy Posted April 2, 2018 Share Posted April 2, 2018 Look at this thread for some ideas on selling your house Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 2, 2018 Share Posted April 2, 2018 12 hours ago, paulswin said: I think we’ll hold out to sell it! Did the number crunching to rent and we’d be out of pocket lots! How long was your house on the market for verystormy? We’ll come outwith equity but still lost loads! Have you bought a house in the uk or are renting? If you have no pressing reasons to return to the UK at this time then that may be a good idea. Here in SE Queensland springtime seems to be the best time to sell/buy property for some reason. Don’t know if house selling is seasonal in Perth too but if so, and you are getting no interest, perhaps take it off the market for 6 months and use that time to do any work on the house that might make it more saleable. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 2, 2018 Share Posted April 2, 2018 I know it's not easy to delay once you've made up your mind to go, but that is good advice Quote Link to comment Share on other sites More sharing options...
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