When moving abroad, many landlords face a big dilemma. What to do with their property? Should they simply sell it and use the money to start a new life abroad? Or is it a better idea to leave it sitting to have a place to return to in case things abroad don’t work out as planned? And who says it has to sit empty? Why not rent it and get an additional source of income? As it turns out, every option has its advantages and disadvantages which should be carefully considered before making the final decision.
So here is a handy guide as to whether you should keep or sell your property when moving abroad
Moving abroad always brings some insecurity. Things may or may not work as expected. And if they don’t, you’ll be glad to have a place you can always return to. In addition, its value can increase significantly in the meanwhile considering that property prices just keep on growing. On the other hand, real estate isn’t always a safe investment. Also, owning property also brings some costs, especially if it’s just sitting empty. Even if no one is living in it, you still have to maintain the connection to electricity and water supply, pay the council tax, etc. In addition, it’s good to have someone to take a look at it every once in a while, which means a not-particularly-fun obligation for your friends or family, especially if they don’t live nearby.
If you don’t want any costs with your property while living abroad or even better, make some money of it, it is definitely worth consider to renting it out. But keep in mind that managing things from abroad is not an easy job. And while friends and family will surely be happy to help, dealing with tenants, taking care of repairs and other maintenance tasks can become a heavy burden in the long term. You can also have a property management agency to take care of everything for you but they will charge at least 10% of the rent. Last but not the least important, keep in mind that you’re subject to the UK income tax if you rent property in the UK, no matter if you’re resident or not.
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It may feel good to know that you have a place of your own even if you’re not living in it. On the other hand, property also means responsibility. And when you’re far away and not using or renting it, it’s basically just another hassle, especially if you have a mortgage. Selling thus may sound a very good idea and in many cases, it is. It enables you to get rid of your mortgage loan or/and debts if having any and start a new life abroad with some money in your pocket. On the other hand, you can also wait for a while to see how things are going in your new country and sell your property later.
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Whether to keep or sell your property when moving abroad is a very important decision. You are recommended to take your time and think things through very well, especially if you’re leaning towards selling. However, try to make up your mind within a reasonable time because you don’t want your old property to put a strain on your budget and create an unnecessary stress. Moving abroad is a big step and if you want to make it work, unsettled property issues are the last thing you need.