Financial Dilemma

[TheHarrisonFamily]

Hi

 

We have got a bit of a dilemma.

We are moving over Jan 11 on PR visas.

 

We have our house up for sale and think we have a prospective buyer, who is in rented accom.........so no chain, so is a fantastic potential buyer. (time will tell). Now we are having second thoughts as to whether we should be selling or renting??

 

If we sold....with the current exchange rate, we dont think we could afford to bring the money to Oz as we would loose a lot of money. However to leave it in a Uk bank account wouldn't generate a lot either.

 

It seems renting it out would give us the same sort of return on our money over a 12month period. We would then have somewhere to come back to if it didnt work out....( the old panic mode is setting in)! Neither of us have jobs, so could be a disater if we dont find work quickly.

 

We are going round in circles trying to make the right financial decision. I love my home and if we came back, would want to return to my house, but also want to make the right decision to be able to make a go of our long term future in oz.

 

We dont have any knowledge of tax implications of rental or bringing money to oz after house sales( say 2 years time). My head is pounding and we need to make a decision quickly else may well miss out on our potential buyer.

 

Confused.....thats us.

 

Thanks

[ian mc]

Have a read at this thread might give you some options money here in OZ but in GBP waiting till rate is better for you..http://www.pomsinadelaide.com/forum/money-finance/19246-open-gbp-bank-oz.html

[sueoc]

We were exactly the same as you 2 years ago.The only difference was i did not particularly want to sell our house as i love it,and as you say,who knows whether it will all work out?We rent our house out in the UK,have not had any real problems at all,rent is paid,covers mortgage,no profit so no tax implications so far so good whilst we decide long term,without pressure.I like the option of packing up whenever and if ever it suits me.At present i am reasonably happy here in OZ,but who knows what the future holds!

[taffordbark]

Hi

 

We have got a bit of a dilemma.

We are moving over Jan 11 on PR visas.

 

We have our house up for sale and think we have a prospective buyer, who is in rented accom.........so no chain, so is a fantastic potential buyer. (time will tell). Now we are having second thoughts as to whether we should be selling or renting??

 

If we sold....with the current exchange rate, we dont think we could afford to bring the money to Oz as we would loose a lot of money. However to leave it in a Uk bank account wouldn't generate a lot either.

 

It seems renting it out would give us the same sort of return on our money over a 12month period. We would then have somewhere to come back to if it didnt work out....( the old panic mode is setting in)! Neither of us have jobs, so could be a disater if we dont find work quickly.

 

We are going round in circles trying to make the right financial decision. I love my home and if we came back, would want to return to my house, but also want to make the right decision to be able to make a go of our long term future in oz.

 

We dont have any knowledge of tax implications of rental or bringing money to oz after house sales( say 2 years time). My head is pounding and we need to make a decision quickly else may well miss out on our potential buyer.

 

Confused.....thats us.

 

Thanks

 

We had the same dilema as you 15 months ago...we sold up and decided to wait to see what the rate did..and it just kept going down......eventualy we found a house,changed up and forgot about it.You get what you get,there is no guarantee that you will make on the exchange rate,we got 1.65,,,if we had changed when we came we would have got 2.1 but by thinking we could second guess the market,we lost out. My advice to you would be if you realy want to live here,change your dough strait away and forget about it,,,,buy as soon as you can! dont dither like we did,,it will not benefit you!

[Guest jonny no cash]

Hi,Do you still have a mortgage on the property ?If so you may need to get consent to lease from the lender or you could be in breach of your mortgage conditions,I was refused consent because I dont have a job yet,My wife had to go out ahead of me to start her job so here i am waiting for it to sell,I have accepted an offer but the bank has been a nightmare to him so on it drags,but good luck anyway

[TheHarrisonFamily]

Hi,Do you still have a mortgage on the property ?If so you may need to get consent to lease from the lender or you could be in breach of your mortgage conditions,I was refused consent because I dont have a job yet,My wife had to go out ahead of me to start her job so here i am waiting for it to sell,I have accepted an offer but the bank has been a nightmare to him so on it drags,but good luck anyway

 

 

Hi

We do have a mortgage with The Nationwide. I rang them and said we were considering renting. They have sent a form to complete asking questions about our rental plan. It doesnt anywhere about our ability to pay. The rent will cover the mortage outstanding so i assumed it was a formality!

 

Youve made me think now.

[Andrew from Vista Financial]

Hi

 

Just in relation to potential tax implications.

 

Overseas rental income for PR's is to be declared in Oz (and UK of course) but as mentioned mortgage interest costs, management fees etc are allowable deductions.

 

Gains on the increased value of the property may also be taxable in UK and/or Australia, however many exemptions and discounts can apply therefore it would be wise to discuss these issues with a Tax Adviser prior to selling who understands tax on both sides as there may be an optimum time to sell in the future.

 

Consideration should also be given around releasing equity (if of course there is any) prior to leaving and renting out a property as once it is rented out it is much harder to release equity.

 

Regards

 

Andy

 

 

 

(this is general information only and not financial advice)