Updating post from Reddit.
Currently in the process of organising a move abroad to live my fiancée in their house and deciding whether to let or sell my UK house and was looking for advice in the current climate and if there are any major pitfalls with the letting path.
With the ever increasing UK property prices getting off the ladder in case I end up returning to the UK makes me wonder if I would be able to get back on and hence considering letting. The property is fairly new around 15 years old in good condition and should require minimal work, mostly the certificates, to be ready to let.
Was also wondering if there is any advantages with owning the property outright versus having a mortgage on the property as both would be possible in this instance, with currently around 30% outstanding on the residential mortgage I would be changing from.
Thinking of using an agent to let and manage the property with being abroad and hoping to have minimal involvement, realise this will reduce the margins significantly, though wondering about how to find a good one for this.
Would be grateful if anyone has advice or any good resources to review.
Wait for next weeks budget and see what they have in store for us landlords and you can then make a better list of the pros/cons of each option.
Personally as it stands I would let my property if I moved abroad but thought I may come back. However, after next week I may not hold the same view.
Why? What is likely to change next week that can alter your view so much..? Genuinely curious. Thanks
Taxes in general so possible change to tax on property income, capital gains but also could be many other introductions or changes that could impact someone who is living abroad but has assets in the UK.
It’s all speculation at the moment so if I were OP I’d wait until the budget next week so I could make a proper informed decisions on pros/cons.
I’m a bit confused by the question to be honest. Are you UK based. Surely you know this?
OK. Yes I’m uk based. Previously worked abroad.
I’m now looking to buy my first ever property, and have it as a BTL house while I’m still at my parents house.
I figure I need a base here, so I may as well buy and have it earning some income and paying off mortgage while I’m at it…?
Thoughts..?
If you haven’t maxed your ISA you’d prob get a better return with no tax implications on a decent S+S ISA. BTL mortgage you have interest rates potentially being high, property may not actually gain in value, tax implications, risk of tenants not paying, less liquid so ability to access money if you need it.
Again I’d wait for next weeks budget and look at pros and cons for both depending on your needs
Ok thanks mate.
I just feel that I do want some kind of house to eventually live in also, so while it may not be the perfect investment, it will hopefully increase in value over 30 years.
I do also intend to start investing in the S&P500 as well via an ISA. Thinking about setting up an account with Vanguard in a week or so
So I was in your boat a few years ago. We kept our property just in case the overseas idea didn't work out. It's managed by agents because unless you have someone you trust on site theres no other feasible way to manage it.
Tax wise it's quite good, it will be taxed under the UK system and assuming you have your personal allowance it's potentially tax free. The country you move too might want a cut but most EU countries won't, you'll just have extra filling requirements.
However I personally want to get rid of it, we're not moving back and it feels like the agent just wants to rip us off. It's also a bunch of work and a distraction for us when we have other things to deal with.
Think carefully about the tax implications of this both in the UK and whichever country you will be living in.
If your thinking about it or indeed doubting it, maybe in your heart of hearts you don't think renting is the right obligation? 4u...
The same could be said for selling it and no longer being able to get back on the Uk property ladder though right? They need to weigh the pros and cons of both.