Rent or sell - work abroad
Discussion
I’ve been offered a job in Australia, initially on a temporary visa. After two years the company will sponsor me for PR, which will be written in the contract.
However, I’m unsure on whether to sell my property, or rent it while I’m on a temporary visa. The obvious pitfalls is the potential hassle being a landlord even if it’s fully managed, but also the capital gains tax if I sell the property after two years. I love my house, and if I had to return to the U.K. I would struggle to find a house I love as much.
I’m assuming if a property has a monthly rental cost of around 2k, the tennents should generally be less of a problem?
I don’t mind the potential wear and tear because we were due to replace the flooring, skirting boards, doors and windows. This was prior to the company contacting me if I was interested in working in Oz.
I have an agent visiting on Thursday to look at the property and explain everything etc.
However, I’m unsure on whether to sell my property, or rent it while I’m on a temporary visa. The obvious pitfalls is the potential hassle being a landlord even if it’s fully managed, but also the capital gains tax if I sell the property after two years. I love my house, and if I had to return to the U.K. I would struggle to find a house I love as much.
I’m assuming if a property has a monthly rental cost of around 2k, the tennents should generally be less of a problem?
I don’t mind the potential wear and tear because we were due to replace the flooring, skirting boards, doors and windows. This was prior to the company contacting me if I was interested in working in Oz.
I have an agent visiting on Thursday to look at the property and explain everything etc.
if you are renting -
make sure you do it right and use the proper agencies. too many asshats out there and get the wrong one it will make your life miserable and totally mess you up.
I know somone that has over 20k in unpaid rent and not much chance of seeing that money..... all because it wasnt done properly and the right people involved.
make sure you do it right and use the proper agencies. too many asshats out there and get the wrong one it will make your life miserable and totally mess you up.
I know somone that has over 20k in unpaid rent and not much chance of seeing that money..... all because it wasnt done properly and the right people involved.
We live in France and rent out our London house. We wanted to sell it but the previous government screwed up the economy so much that nobody wanted to even pay what we had in 2016 so we had no choice but to rent it for some years.
The rent is nice. It’s a decent income, but I’d rather have sold it, even though I love everything about the house and its location. I’m never going back to live in the UK again, the tenants are annoying pricks, and the agents are utterly incompetent. Not to mention bloody expensive for people that do sweet FA.
The rent is nice. It’s a decent income, but I’d rather have sold it, even though I love everything about the house and its location. I’m never going back to live in the UK again, the tenants are annoying pricks, and the agents are utterly incompetent. Not to mention bloody expensive for people that do sweet FA.
Tlandcruiser said:
I’m assuming if a property has a monthly rental cost of around 2k, the tennents should generally be less of a problem?
I would have thought that too, but a good friend has a few properties that rent out in the £4K pcm bracket and he’s had some nightmare tenants, ranging from those who just don’t look after it, to those who call the agent if they spill a drink of water, to those who are incognito because they don’t want certain people catching up with them. Add in the ones who are fronting it through a company which then liquidates when the rent is way overdue. Just so you’re aware!
k having sitting tenants.GriffoDP said:
Is your home mortgaged? I've been looking at NZ on a similar arrangement but with roughly 50% LTV remaining and being a higher rate tax payer means it'd not even cover the mortgage for me.
Unless I've failed to understand all the fun tax implications!
Yes, I have mortgage with about the same LTV and a higher tax payer. Unless I've failed to understand all the fun tax implications!
-Cappo- said:
Tlandcruiser said:
I’m assuming if a property has a monthly rental cost of around 2k, the tennents should generally be less of a problem?
I would have thought that too, but a good friend has a few properties that rent out in the £4K pcm bracket and he’s had some nightmare tenants, ranging from those who just don’t look after it, to those who call the agent if they spill a drink of water, to those who are incognito because they don’t want certain people catching up with them. Add in the ones who are fronting it through a company which then liquidates when the rent is way overdue. Just so you’re aware!
Tlandcruiser said:
I love my house, and if I had to return to the U.K. I would struggle to find a house I love as much.
If you love the property, don’t rent it out long term. The emotional attachment/issues associated with renting, tenants not taking care of the place (or worse) should be major considerations. Either keep it mothballed until you know whether you’re coming back, or sell and buy dedicated rentals without the memories associated with them (fwiw, the latter is what we’ve done when we’ve sold properties we’ve previously lived in). Perhaps consider a short term Airbnb if you can find agent to manage?
It all depends on how good your lettings agent is at vetting potential tenants - when we left the UK we had a great agent, who handled everything perfectly for 4 years, then the company was taken over by a larger outfit and the local office was staffed by a new team who were complete muppets. When the original renter left to get married, the replacement that the new team had “vetted” moved in and the problems started - within 6 months it was becoming so much hassle - even though the agent was supposed to be dealing with everything for us (for a fat percentage) as we were on the other side of the planet - the only option was to sell.
With hindsight we should have weathered the storm of crap that the new tenant / managing agent had created, but it was so stressful from a distance on an almost daily basis that we made the decision to get the renter out as soon as possible, get the place cleaned up and sold.
When we managed to visit some time later, a neighbour thanked us for getting rid of the lowlife scum that had moved in after the perfect original renter, and the new owners were decent people too.
The rental agency also didn’t last long term - funny that!
With hindsight we should have weathered the storm of crap that the new tenant / managing agent had created, but it was so stressful from a distance on an almost daily basis that we made the decision to get the renter out as soon as possible, get the place cleaned up and sold.
When we managed to visit some time later, a neighbour thanked us for getting rid of the lowlife scum that had moved in after the perfect original renter, and the new owners were decent people too.
The rental agency also didn’t last long term - funny that!
Where is the house? 2k per month could be a lot or a little. And either way, it's no guarantee of decent tenants. It will also be a factor in how the capital value is likely to change.
My OHs had 3x great tenants, and 3x pitas...
If it needs a refurb now, do it before you rent it out. It will be easier to let, and you have a good baseline condition. It'll need redoing if/when you move back.
My OHs had 3x great tenants, and 3x pitas...
If it needs a refurb now, do it before you rent it out. It will be easier to let, and you have a good baseline condition. It'll need redoing if/when you move back.
We rented ours out when we moved abroad (NL so still close enough to visit for a weekend), the agent we used are a bit slow and we have to chase them over things, but fully managed means when there is an issue they sort out quotes to get it fixed (just had the flat roof on the extension replaced due to it starting to leak). My initial thinking was I didn't want to to sell and risk being priced out of the housing market if UK house prices go mad. We seem to have got lucky with the tenant, he's been there several years now and seems to be keeping the place in ok condition, and we're charging a bit below market rate as I'm happy to keep him.
We would plan to sell it and buy something else when we move back to the UK though, so might have different views if it was a place I was emotionally invested in, however while some are suggesting mothballing it, the rent you get in pays for a lot of repairs/decorating vs leaving it empty! Also I'm not completely clear on what the current rules on CGT and tenants rights are because they've changed since we left, he's on a fixed term tenancy and I should know a year in advance when we're likely to return so should be ok.
We paid off the mortgage before moving though, I assume you'd need to agree it with the mortgage company before letting it.
We would plan to sell it and buy something else when we move back to the UK though, so might have different views if it was a place I was emotionally invested in, however while some are suggesting mothballing it, the rent you get in pays for a lot of repairs/decorating vs leaving it empty! Also I'm not completely clear on what the current rules on CGT and tenants rights are because they've changed since we left, he's on a fixed term tenancy and I should know a year in advance when we're likely to return so should be ok.
We paid off the mortgage before moving though, I assume you'd need to agree it with the mortgage company before letting it.
jonsp said:
andyxxx said:
Crumpet said:
The only way I’d entertain being a landlord would be if you could hold a deposit of 3-4 months.
The new housing bill will make that illegaljonsp said:
andyxxx said:
Crumpet said:
The only way I’d entertain being a landlord would be if you could hold a deposit of 3-4 months.
The new housing bill will make that illegalIt's worth pointing out that the new renters rights bill is probably going to take effect in the Autumn - and it immediately changes existing tenancies.
In other words - even if you started a one or two year tenancy now - in about 6 months, it will change to a tenancy with no end date, and the tenants will suddenly gain all of their new rights.
Your ability to get them out is massively reduced - you can move back in, or sell it - but that's about it.
Their notice period remains as it is now - 2 months. But you cannot give them less than 4 months notice.
And the EPC regs kick in in 2028 I think - although I think you have until 2030 if you already have tenants - and depending on your property, getting it to C might be a problem. Especially since they haven't yet decided what will constitute a C, since they're changing the criteria for the bands.
I rent a house out, and I think the EPC thing will probably force me to sell. I believe there is a £15k cap on how much you have to pay to try and get it to "C" but the rules really are making it very difficult to rent a property.
In other words - even if you started a one or two year tenancy now - in about 6 months, it will change to a tenancy with no end date, and the tenants will suddenly gain all of their new rights.
Your ability to get them out is massively reduced - you can move back in, or sell it - but that's about it.
Their notice period remains as it is now - 2 months. But you cannot give them less than 4 months notice.
And the EPC regs kick in in 2028 I think - although I think you have until 2030 if you already have tenants - and depending on your property, getting it to C might be a problem. Especially since they haven't yet decided what will constitute a C, since they're changing the criteria for the bands.
I rent a house out, and I think the EPC thing will probably force me to sell. I believe there is a £15k cap on how much you have to pay to try and get it to "C" but the rules really are making it very difficult to rent a property.
andyxxx said:
Crumpet said:
The only way I’d entertain being a landlord would be if you could hold a deposit of 3-4 months.
The new housing bill will make that illegalEdited by 98elise on Monday 7th April 13:27
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