Moving to Australia

umarnazar

Hi all,

Looking for some advice on whether to sell or rent out my residential property as I’m moving abroad in September.

I’ll be relocating with my family and returning to the UK in August to clear the house and either put it up for sale or arrange letting.

If I sell, I’d likely list in August, but I’m concerned the process could take 8–12 weeks or more, meaning completion might happen while I’m already in Australia. Not sure how practical it is to manage a sale remotely.

The alternative is to convert to BTL and rent it out, but I’m unsure if it’s worth it given consent-to-let issues, non-resident landlord tax rules, agent fees, and general hassle while living abroad.

Is it realistic to sell while already overseas?
Would most people in my situation try to sell before leaving even if timing is tight?
Is renting it out usually worth it long-term in this situation, or more trouble than it’s worth?
Any pitfalls I should be aware of?

Any real-world experience appreciated.

Keep_pedalling

Selling while overseas is going to be easier than renting out while overseas. You could always appoint someone as your attorney to handle all the signatures required.

aussie_in_wales

Friends of mine moved to Sydney 8 years ago and kept their property in the Midlands and rented it out. It worked well for them. A reasonably nice property in a sought after area. They paid a letting agent to take over all the rental organisation. They do come back every 18 month to 2 years to see family. The house was at the time of first moving mortgaged and they converted it to a Buy to Let mortgage.

They sold at the beginning of the year (were mortgage free) and did it all while based in Australia.Maybe they were lucky but the didn't have any issues.

I guess having one set of parents still in the UK helped with the sale process. Will you have any family still in the UK to provide assistance?

sheramber

My son sold his flat while living abroad.

His solicitor communicated by email and I think electronic signature was used.

A friend sold while her husband was in New Zealand. He signed a power of attorney for his solicitor to sign on his behalf.

Tabieth

I agree with the previous reply, renting out while overseas sounds far more stressful than selling. And with selling there’s an end point when you do actually sell. With renting, the hassle is ongoing.

umarnazar

https://forums.moneysavingexpert.com/discussion/comment/82036870#Comment_82036870

No family members, however got friends here.

I guess renting would be difficult I think, yes, can be managed by management company however taxes on the rent property and it is a big 5 bedroom house so difficult to rent out I guess.

I am personally leaning towards selling though.

poseidon1

Hopefully you have thought to take Australian tax advice in advance of your move there , if not the brief article below may give you further food for thought regarding the sell versus rent debate you are having-

https://www.sheltonsgroup.com/blog/managing-uk-property-tax-whilst-living-in-australia/

chrisfp

We kept our house when we moved to California 4 years ago and really happy we did.

For our mental health(!) it was right for us first and foremost as it's our family home and felt too soon for us to say goodbye to it plus of course knowing it's there should something come up and want have to/want to return is a major comfort even now with us happy over here

We have the whole thing managed by a local EA who are phenomenal. They deal with the tenants, collect rent and manage the property when issues arise etc. It's not cheap and they take a 10-12% fee for doing so but I would say essential given time zones and peace of mind.

We are making a profit as well which is a benefit with net rent higher than mortgage repayments/outgoings. Not huge but again good peace of mind. It's a nice house in an sought after area so will we think go up over time (albeit slower than years previously!)

Mortgage is with Coventry BS who again have been excellent, gave us consent to let for 2 years initially and allowed that to continue after the first 2 years expired. They imposed a 1% fee for a year or so but have since removed that fee. Far better for us than any BTL rate.

Tax is done by a tax team my company supply for both UK and US - messy in that first year where your UK/foreign earnings overlap but after the first full year away from the UK it's pretty straightforward - can't remember the form/approval required but we get paid rent as gross and then pay the tax owed at the end of each year. US tax is super complicated but UK side is dead easy and could definitely handle without assistance if needed.

So, yeah worked for us and just wanted to add a positive spin to the thread!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82080236#Comment_82080236

 It's a nice house in an sought after area so will we think go up over time (albeit slower than years previously!)

Although if you take inflation into account, most houses in the UK have produced approx zero return in the last 10 years, and a negative return in the last four years ( due to the inflation spike). On the other hand other investments and savings have also been affected by inflation of nearly 25% in the last 5 years.

daveyjp

Pros and cons for either way. A neighbour moved to Hong Kong about 20 years ago and kept her property. She is now trying to sell it with a sitting tenant and there is no interest.

However are you likely to come back to the UK? Having a property means you aren't affected by increase in house prices over the years. Getting back on the UK housing ladder after years off it cn be more difficult than envisaged.

MEM62

If I sell, I’d likely list in August, but I’m concerned the process could take 8–12 weeks or more, meaning completion might happen while I’m already in Australia. Not sure how practical it is to manage a sale remotely.

If you think that conducting the sale remotely might be an issue then the thought of renting remotely should put you off that idea completely. How would you plan to run a business (which is what renting is) from halfway round the world?

Just my opinion but the renting route really is not the way to go. Way too risky and way too many headaches.