Should we sell up and rent?

Kathy220559

Hi

I just found this 'new' board and am getting quite excited!

I posted on the Debt-Free board (under the same title) if anyone wants to take a look) if not here is a brief summary.

Basically, my hubbie and I have had a pretty grim time for the last few years and have ended up in quite a lot of debt. I have a debt-management plan in place with all the creditors through CAB and we are just about managing to keep our heads above water.

My original post was shall we sell our home and rent, paying off the debts, keeping some money and invest the rest on a high income return.

Most of the advise seems to be to hang onto the house and continue to 'manage' Its is all sensible advise and I am very grateful but have just reaslied on here that there may be another option.

I have always wanted to 'live' abroad, although never permanantly, and wondered if this may now be the time to do it.

My son and his fiancee and in rented accomodation at the moment, so we could rent our house to him. We could then rent abroad and with the cost of living being so much cheaper maybe have a better quality of life.

Sounds great huh? BUT there have to be pitfalls. First of all I would like to ask some questions if I may:

1 We are both on Incapacity Benefit. My hubbie is 62 and is covered until 2010 without medicals and then he will switch to State pension. I am covered until August 2007 and then need another medical.

2 What would be the rent over there. I would love a place place, 2 beds somewhere near the coast....what sort of rent would I be looking at for 3 - 6 months rent.

3 We would have approx £800 per month to live on...would that be enough for 2 adults and still enable us to go out occasionally for meals etc.

4 Whats happens with bills etc. Most of mine are done on-line but would I be likely to have internet access in rented accomodation.

Incildentally, my husbands dream is to do this but in Las Vegas. Can anyone who has any know please advice on the same sort of things. I think USA has an advantage at the moment as we have friends there and the Dollar rate is fab at the moment, but I am a bit scared of being so far from home.

Any help from anyone would be much appreciated.

BTW I forgot to add that when we come home, hopefully for short periods there is plenty of room in house house for the lot of house, although may be a problem if we decided to come home for good. If we did could we make our son homeless to 'bump' him up the council house list. Sounds heartless I know but I didn't know which other way to put it. Failing that my Mum has an apartment which is empty for from for the summer as she has a holiday caravan so we could always 'squat' there.

Cheers
Kathy

seven-day-weekend

This thread

http://forums.moneysavingexpert.com/showthread.html?t=94140

may answer some of your questions as it has information about Incapacity Benefit abroad, budgets abroad, and advice about the USA.

Kathy220559

Thanks for that...I will check it out

Kathy

tanith

Cathy just a thought but would you really want to live even for a short while in Las Vegas, all right for a visit but can't say I'd want to live there.... but I am sure my OH too would think he had died and gone to heaven if I agreed to that......:rotfl:

trisha

Las Vegas suffers badly from pollution,the same as L.A does, you can see it when you are approaching Vegas, it's like a huge cloud hanging over it.

I agree with the last o.p you really wouldn't want to live there, the communities are huge and spreading rapidly, also there is a risk that you could become addicted to gambling, I know of many sad cases.

Thirdly, the medicare in USA is extremely expensive, we had thought about emigrating to the USA until we found out what the costs of medicare would be and you couldn't afford to pay the bills if you didn't have it, medication alone is very expensive, our friends drive to Mexico once a month to buy theirs as it is a lot cheaper there, they also go to the dentists and opticians in Mexico for the same reason

If you are thinking about Spain, my advice would be to rent for six months and see how you like it, also bear in mind if you were hospitalised that there is no nursing as we know it, the family have to attend to the patients needs,feeding, washing etc.

I don't want to put you off.
Think it through very carefully, it's a big step.

Good luck
Trisha

margaretclare

Hi

I absolutely would not go to live in the USA long-term if, as you say, your husband has health problems, severe enough for him to be on incapacity benefit.

DH talks to friends in the USA who are, like him, diabetic, and every last thing they need, testing-strips, you name it, have to be paid for. He has a friend who's on so much medication, she only gets it free because there's a healthcare scheme from where she works, and the dilemma is, she can't afford to retire!!!

Not good news.

Margaret

missile

Hi Kathy,

That sounds like a very good plan, far better than equity release. Lets hope your son remembers to pay the rent on time. I have a friend who lets his house out to his house out to his wife's daughter from a previous maraige and she "forgets" to pay. This causes a great deal of friction between husband and wife.

I Know rents are cheap in USA, but I would be very concerned at the cost of health care. You may not be able to get a visa for an extended stay.

There is a glut of property available to rent all along the Costas. You could live comfortably on £800/ month. There seems to be some confusion over whether benefits can be claimed by those resident in a.n.other EU countries. Some seem to do it with no problem, but I read one letter from a guy who was interviewed under caution by DWP. Be very careful, I suugest - check your own circumstances with whichever benefits agencies you claim from. Health care in Spain is IMHO better than in UK and no MRSA.

PS: The euro rate is very good at present.

seven-day-weekend

missile wrote:

Hi Kathy,

There is a glut of property available to rent all along the Costas. You could live comfortably on £800/ month. There seems to be some confusion over whether benefits can be claimed by those resident in a.n.other EU countries. Some seem to do it with no problem, but I read one letter from a guy who was interviewed under caution by DWP. Be very careful, I suugest - check your own circumstances with whichever benefits agencies you claim from. Health care in Spain is IMHO better than in UK and no MRSA.

PS: The euro rate is very good at present.

Incapacity Benefit can definitely be claimed in Spain (if you are eligible for it before you go to Spain). My husband claims it, he has had to fill in a questionnaire since he has lived here, which was a bilingual one so that our Spanish Doctor could fill it in. This was just anormal review, nothing to do with him living in Spain.

You do have to inform the DWP that you are going to Spain though, and you can no longer access the British NHS other than for emergencies.

Agree absolutely about the Spanish NHS. My husband had to have a scan yesterday, he saw the urologist later the same day, and has his operation on 3rd April. This is for a minor complaint (not life-threatening). It is all free as he is on IB (for other than the aforementioned condition).

missile

seven-day-weekend wrote:

Incapacity Benefit can definitely be claimed in Spain (if you are eligible for it before you go to Spain). My husband claims it, he has had to fill in a questionnaire since he has lived here, which was a bilingual one so that our Spanish Doctor could fill it in. This was just anormal review, nothing to do with him living in Spain.

You are one of those I am aware of who seems to have no problem in claiming benefit. However as reported in last weeks euroweeklynews item "European Benefits Beaurocracy" it seems not all are so fortunate. The article is not available online, but see the letters page http://www.euroweeklynews.com/ewn/mrsed.php

I suggest it is important that Kathy checks her own circumstances. Both she and her husband receive IB, does she receive any other benefits? The Department of Works and Pensions will tell her exactly how pensions and benefits will be affected, what health care she will be entitled to now and in the future.

Kathy,
Please consider TAX. You may be liable to tax on the rent from the UK property.

seven-day-weekend

Regarding the above link, if you are on about the person who had DLA stopped, then AFAIK you have to be British resident to claim this.

I totally agree that everyone should check their own circumstances to be absolutely sure as some benefits (in fact most benefits) are not available abroad. However, IB definately is

missile

The article discussed a variety of benefits which some people are able to claim whilst others are refused.