AJW Posted February 13, 2012 Share Posted February 13, 2012 Anyone living in Aus now that is renting out their UK home, has it gone smoothly, any complaints or advise. I have everything in place to do this, but OH and MIL are not keen on the idea and think we should wait to see if we can sell the house. Already waited so long to get to this stage and just want to get to Aus, house has held us back for almost 5 months now! Worried OH will loose his position in the company that has sponsored us. :arghh: Link to comment Share on other sites More sharing options...
flybyknight Posted February 13, 2012 Share Posted February 13, 2012 its all about location, and obviously what you need for it to break even. i have a couple i rent (i'm still in the uk though) they are looked after fully by a letting agent. its plain sailing for the most part. the thing is, the cost of the letting agent (roughly 10%) and the cost of any repairs (not including extensions etc) are all tax deductable so you end up with the amount agreed as rent. sometimes more, as if you make a loss you can claim it back from your income tax. current state of affairs with the oz $ to the £ i personally wouldn't dream of selling a uk property. Link to comment Share on other sites More sharing options...
pintpot Posted February 13, 2012 Share Posted February 13, 2012 We have sold, but only because our house was really old (like, 650 years old) and a big maintenance headache/liability which we didn't want to have to deal with from the other side of the world We haven't brought our money over though. Not at 1.5$ or so to the pound, no chance. If our house had been a modern one and an easy rent, we would have rented, no question. I've done it before when working abroad and rented out a couple of houses whilst in the UK and it's pretty easy The tax authorities both in the UK and Australia are pretty generous when it comes to letting property. You can set all the interest repayments from your mortgage (NOT the capital repayment part though) against the rent for tax purposes, and add in loads of other allwoances for wear and tear as well as your actual expenses like insurance and agent's fees Just make sure you get a good agent. If you've struggled to sell the house in 5 months, then frankly I don't think things are going to change quickly so it's quite likely you will lose the job you've been offered if you hang about much longer by the sounds of it. Or you'll have to sell at a big discount to getit to shift, which means you'll lose on the sale price *as well as* the exchange rate, which is madness Link to comment Share on other sites More sharing options...
Guest SupportPants Posted February 14, 2012 Share Posted February 14, 2012 There's no point selling as bringing over your sterling would be madness as Pintpot says and buying over here is too expensive. It is a nuisance to some extent as there are always things that go wrong, especially in older properties. I have three in London that I rent out - the older Victorian one costs the most as the tenants are always requiring something mended. I don't use an agent but have a reliable odd job chap. Leave as little in it as you possibly can to avoid being liable for fridges, washing machines etc. Link to comment Share on other sites More sharing options...
Guest haunted1234 Posted February 14, 2012 Share Posted February 14, 2012 our house is on the market......it can sit there, i refuse to rent it out, would rather continue paying the mortgage on it as well as renting here (which is difficult finance wise). hoping it will sell then we can buy here eventually ) Link to comment Share on other sites More sharing options...
fourcorners Posted February 14, 2012 Share Posted February 14, 2012 We rent out our 100 year old cottage in Cornwall. The rent doesn't cover the mortgage (750 pounds versus 900), so we have to fork out a few more hundred each month. Tenants have been good so far but they do seem a bit pedantic, they've been there for 2 and a half months and have made about 5 requests. Most of them we have been happy to deal with: cowlings falling off chimney in strong wind, solar panels needed servicing (we didn't know they needed servicing!), the freezer died in a recent power cut. But the last one has annoyed us. They are complaining that the broadband isn't fast enough and have already had a BT engineer round to investigate. The engineer doesn't know what the problem is but has suggested lots of expensive options. We lived there for 18 months and had no problems, I could watch iplayer and so on so if he wants faster than that he can pay for it himself. Our agent said we're not even obliged to provide a phone line never mind broadband. Also if you do leave things like white goods then you're not liable for them. We have an arrangement whereby if something does break, we can either choose to get them repaired or just scrapped. If we choose the latter then it's up the the tenant to buy their own. Like the freezer, it wasn't worth repairing it as it was ancient, so they've had to get a new one. Our agent says he always uses this arrangement and it seems to work ok. We pay him 10% fees and he sorts everything out for us, seems to be going well so far. We do not rely on tenants financially, and with our current jobs we know that if it were empty we could pay for the mortgage anyway. But having tenants in is actually good for our house, it would get very damp and degrade badly if no-one were living in it. Link to comment Share on other sites More sharing options...
pintpot Posted February 14, 2012 Share Posted February 14, 2012 i refuse to rent it out, Why? At least someone else is paying your mortgage for you then Link to comment Share on other sites More sharing options...
3FatCats Posted February 14, 2012 Share Posted February 14, 2012 Ours is rented and so far so good, fingers crossed. I think having a reliable agent/manager does help if anything needs doing. Our tenants found a broken window last week due, probably, to the extreme cold. This was sorted out/replaced by the property manager and makes it easier for us as we are so far away. We will put in a claim as it is covered with our landlord's insurance. The argument for/against renting really does depend on how attached you are to your house and of course if you need the rental payments to help cover the mortgage. For us there was no question, rent it! Link to comment Share on other sites More sharing options...
DBC Posted February 14, 2012 Share Posted February 14, 2012 We have been out here ofr 6 weeks now and have used Northwood to rent out our place back home in the UK. They give us a guaranteed income regardless of whether the house is let or not. We signed a 12 month contract with them and we literally packed up and left - they sorted out the cleaning, advertising etc, we need never do anything. We had a small mortgage so what we are getting more than covers this and it means that if it all goes pear-shaped over here then we have somewhere to go back to. As others have said, the exchange rate is so bad it isn't worth selling to bring the money out here. Bear in mind that you need to tell your mortgage lender if you intend on renting the place out - we get charged extra interest after 6 months of letting it out - that might affect your decision. Link to comment Share on other sites More sharing options...
flybyknight Posted February 14, 2012 Share Posted February 14, 2012 We rent out our 100 year old cottage in Cornwall. The rent doesn't cover the mortgage (750 pounds versus 900), so we have to fork out a few more hundred each month. Tenants have been good so far but they do seem a bit pedantic, they've been there for 2 and a half months and have made about 5 requests. Most of them we have been happy to deal with: cowlings falling off chimney in strong wind, solar panels needed servicing (we didn't know they needed servicing!), the freezer died in a recent power cut. But the last one has annoyed us. They are complaining that the broadband isn't fast enough and have already had a BT engineer round to investigate. The engineer doesn't know what the problem is but has suggested lots of expensive options. We lived there for 18 months and had no problems, I could watch iplayer and so on so if he wants faster than that he can pay for it himself. Our agent said we're not even obliged to provide a phone line never mind broadband. Also if you do leave things like white goods then you're not liable for them. We have an arrangement whereby if something does break, we can either choose to get them repaired or just scrapped. If we choose the latter then it's up the the tenant to buy their own. Like the freezer, it wasn't worth repairing it as it was ancient, so they've had to get a new one. Our agent says he always uses this arrangement and it seems to work ok. We pay him 10% fees and he sorts everything out for us, seems to be going well so far. We do not rely on tenants financially, and with our current jobs we know that if it were empty we could pay for the mortgage anyway. But having tenants in is actually good for our house, it would get very damp and degrade badly if no-one were living in it. are you on a 176 visa? you could put that 150 loss on the property on your tax return in oz and get it back, you can also claim the repairs back (hope you kept the invoices!) if you are not on a 176 put in a claim in the uk, upkeep is tax deductable. as far as the broadband is concerned, its fully the tenants responsibility, ive never heard of it being the landlords, infact im suprised you even know, any half decent letting agent would have told them to ram it; not phoned you! the white goods etc, if you rent furnished you can keep 10% of the rent as 'depreciation' and knock it off your tax too. insurance is also deductable, so insure everything and relax! we give the tenant the insurance number so they can just phone direct. the insurance co know if we are to be charged for anything they are to contact us first. my advice, in a nutshell, see a dedicated landlords tax acountant...... do it now! Link to comment Share on other sites More sharing options...
fourcorners Posted February 14, 2012 Share Posted February 14, 2012 No were on 457 visas. Yes we were a bit put out about the broadband issue. However the agent thought that if we are ever to move back it might be worthwhile getting the wiring upgraded and only paying for half of it. But if we ever do move back there we would fully renovate and extend it anyway, so it doesn't seem worth the hassle, not if they're not even sure what the problem is to begin with. Our agent is pretty good, he probably just doesn't want to hide anything from us and keep us informed, which is fine. Would you suggest using a UK based landlords tax accountant? Link to comment Share on other sites More sharing options...
flybyknight Posted February 14, 2012 Share Posted February 14, 2012 in your case yes, im sure they can give you a good idea over the phone. i get the feeling you could do well out of it. have a look at 'negative gearing' on google, it's a popular investment option in oz, you'd be doing much the same just in the uk. having a house you make a loss on is crucial to making it work, so you're half way there! anything that is a repair is deductable, extensions etc arent. but you can keep the house in a pritine condition for very little money should you so wish Link to comment Share on other sites More sharing options...
AJW Posted February 14, 2012 Author Share Posted February 14, 2012 Ours is rented and so far so good, fingers crossed. I think having a reliable agent/manager does help if anything needs doing. Our tenants found a broken window last week due, probably, to the extreme cold. This was sorted out/replaced by the property manager and makes it easier for us as we are so far away. We will put in a claim as it is covered with our landlord's insurance. The argument for/against renting really does depend on how attached you are to your house and of course if you need the rental payments to help cover the mortgage. For us there was no question, rent it! Hi can you PM me the agent you are using? The management company we were going to use, rent out to DSS tenants and it states on our 'consent to lease' application that we can't do this, so need to find another agent that will do everything for us, reliably! Link to comment Share on other sites More sharing options...
AJW Posted February 14, 2012 Author Share Posted February 14, 2012 We have been out here ofr 6 weeks now and have used Northwood to rent out our place back home in the UK. They give us a guaranteed income regardless of whether the house is let or not. We signed a 12 month contract with them and we literally packed up and left - they sorted out the cleaning, advertising etc, we need never do anything. We had a small mortgage so what we are getting more than covers this and it means that if it all goes pear-shaped over here then we have somewhere to go back to. As others have said, the exchange rate is so bad it isn't worth selling to bring the money out here. Bear in mind that you need to tell your mortgage lender if you intend on renting the place out - we get charged extra interest after 6 months of letting it out - that might affect your decision. Yeah, I contacted Northwood but they don't take on houses in our area (as we are too far out of the city.) Our lender has agreed to 'consent to lease' but not to DSS tenants so the company we were going to use who rely on DSS tenants is no longer a possibility. Just hitting brick walls at every turn! :sad: Link to comment Share on other sites More sharing options...
DBC Posted February 15, 2012 Share Posted February 15, 2012 Have you considered renting it privately and are you lucky enough to have anyone back home that would look after it for you? Perhaps you could sweeten them with a small fee? The agencies will charge you one so it might be better off in the pocket of someone you trust to help you out? Sorry, can't think of any other places that do the guaranteed income. Link to comment Share on other sites More sharing options...
jennlx Posted February 15, 2012 Share Posted February 15, 2012 Where's your house? Our rented house is being sold (landlady died) and we need somewhere to live and we don't live like pigs! Link to comment Share on other sites More sharing options...
chalkyhill Posted February 15, 2012 Share Posted February 15, 2012 We were not given permission to rent out from the bank for the first year. We only got time wasters trying to buy the flat, then the bank eventually gave consent. So far its been relatively hassle free. Link to comment Share on other sites More sharing options...
flybyknight Posted February 15, 2012 Share Posted February 15, 2012 with the tax return, assuming youre working and paying a fair whack of tax, you almost have garunteed income. if the house is empty you are paying the mortgage, this is a loss, and can come off the tax you're paying (if im reading it right) Link to comment Share on other sites More sharing options...
AJW Posted February 16, 2012 Author Share Posted February 16, 2012 Where's your house? Our rented house is being sold (landlady died) and we need somewhere to live and we don't live like pigs! We're in Edinburgh... Link to comment Share on other sites More sharing options...
Cal2 Posted February 16, 2012 Share Posted February 16, 2012 after this helpful advice I feel more confident about renting the house out thanks Cal Link to comment Share on other sites More sharing options...
Guest jdee Posted February 16, 2012 Share Posted February 16, 2012 Howdy, Would be interested in your 'informed' point of view to a question of mine..."I'm tempted NOT to inform my Mortgage Lender [ML] about Renting my house out in England when I emirgrate. Because provided I keep paying the mortgage [& upgrade the ins. to Landlord B+C Ins] what's the harm?" I have approached the ML & in theory they'd be happy to leave the Mortgage as is for 6-24Mths rental. BUT I have a cracking mortgage, 1.5% rate [just lucky] & dont want to have to convert to a Buy2Let %rate; which is a good 3.5% more than I'm currently paying. And you know 99.999% they will want to terminate my current mortgage to squeeze more dosh [plus with the salary multiple, LTV i'd find it impossible to go to another lender so they've got me!] Link to comment Share on other sites More sharing options...
AJW Posted February 16, 2012 Author Share Posted February 16, 2012 Howdy, Would be interested in your 'informed' point of view to a question of mine..."I'm tempted NOT to inform my Mortgage Lender [ML] about Renting my house out in England when I emirgrate. Because provided I keep paying the mortgage [& upgrade the ins. to Landlord B+C Ins] what's the harm?" I have approached the ML & in theory they'd be happy to leave the Mortgage as is for 6-24Mths rental. BUT I have a cracking mortgage, 1.5% rate [just lucky] & dont want to have to convert to a Buy2Let %rate; which is a good 3.5% more than I'm currently paying. And you know 99.999% they will want to terminate my current mortgage to squeeze more dosh [plus with the salary multiple, LTV i'd find it impossible to go to another lender so they've got me!] I would take them up on the 6-24Mths rental, you are in breach of your mortgage contract if you don't tell them and they could repossess your house, from what I understand. You do have a cracking mortgage at 1.5% WOW!! We are stuck for the next 17mths on 6.5%, would change to 'buy to let' now for a better rate but have over £3k worth of early repayment fees (which we have to pay out of our pocket) if we do, so we will wait it out on the agreed 'consent to lease' period of 17mths and then change to 'buy to let' avoid the fees and get a better rate than we're on now. All this of course if we do let out our property... We had a viewing today - our 2nd in 5 months, but there is a slim chance they may buy it, so we'll just wait to see if they make an offer that we can accept. Link to comment Share on other sites More sharing options...
Guest jdee Posted February 16, 2012 Share Posted February 16, 2012 Thanks AJW; yes think you're correct, I would be in breach [i read the T+C's awhile ago] plus using an reputable estate-agent to do the fully-managed letting, i think they'll only take it on if its done properly. Regards Link to comment Share on other sites More sharing options...
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