Moving to Oz, undecided whether to sell or rent out house - Help?

M

Michelin

Guest
Can you advise me please.
I have a visa to move to Australia, am living in a nice house in Dublin, but am really undecided whether to sell it or rent it out, also have my wife and the kids to worry about too.
The problem with renting it out is that I don't have enough money to finance a move to Oz, so that was mainly why I was considering selling. I am in my last four years of my current mortgage and my house is worth approx 550K.
Is there any way we can release Equity of approx 300K so as we could buy a property in Oz, and after 1-2 years pay back the loan?
Basically what I am asking is there any way we can get a repayment free loan for a year or so, with a view to paying back the loan if we definetly decide to settle in Oz after a year or so, so then I could come home to Dublin to sell the house, and then repay the loan after the house sale?
Could you give me advice please, or even recommend a good person to speak to about this.
Cheers
 
Do not sell in Ireland under any circumstances. Going on holiday to Australia with a family is different to living there. You or your family will either love it or hate it. Take some MEW out of your house; the €300kIR will buy loads in Oz. You can always sell later if you settle.
 
Hi Michelin,

Equity release shouldn't be a problem on your house - with regard to the repayments - you'd have to check with the bank - I know PTSB do a six month "Big Freeze" or at lease did do previousl where you don't pay a mortgage for the first 6 months. My advice for what it is worth don't put your property up for sale at the moment - it is very stressful, I'm currently trying to sell also, thank God not in a hurry as hoping to build again. Apart from this even if the market wasn't as bad as it is, I would still say rent it out - hold on to your property, see how life if Oz goes, you never know on your return what the property market will be like here it could have gone up again and trying to get back to the level of house you are at presently could be a problem. Also if you buy a property in Oz and subsequently sell and return to Ireland the Australian dollar is worth just about half of the Euro (or thereabouts) so while you'd be gaining going to Australia - you could buy a very nice house depending on where you go - (Sydney very expensive) - on your return you money might not buy the house like you have at the moment. Best of luck with your decision - I hope I didn't confuse you too much.
 
Hi,

I wouldn't sell in Ireland yet it's always nice to have something to come back to so your not starting all over again.
As for the comment 300K will buy loads in Oz, it depends what part of oz you intend emigrating to. While sydney and melbourne are expensive, the west coast is definitely catching up, house prices in perth and surrounding commuting areas have risen 38% in the last year, so now your talking just under 600K Oz dollars for average 4 bed bungalow house, no pool, in a small estate like development approx 20Km outside the city of Perth. The trend tends to be to buy a block of land in a development, certain tax incentives may be available if you build within a required time and pick from a range of different types of houses to build on it.

However rent is cheaper in Oz so it would definitely be worth renting a house for 6 months to see how you like living and working there and like the area, oz is an amazing place with sun and lifestyle etc but living and working in a place is very different to being on holiday.


best of luck with your move!
 
mrsoz said:
Hi,

As for the comment 300K will buy loads in Oz, it depends what part of oz you intend emigrating to. While sydney and melbourne are expensive, the west coast is definitely catching up, house prices in perth and surrounding commuting areas have risen 38% in the last year,
Click to expand...

Oz so expensive considering interest rates are very high. I know with the commodity boom etc and exporting a lot to China etc, it is attracting quite a few hnw individuals, experts in white collar & coal face mining trade etc. Rent though rather than buy for the next while. Oz is a house of cards, like New Zealand. Many speculators buying on the Yen carry trade. Basically borrowing at 0.5% and speculating in property - this has now ended. Normality will hopefully return at some stage especially as yields have now compressed to 3% and out of kilter to values. I've a brother in Perth - owns about 14 properties (hate him for it) - but he's rosy on Oz property future, but then again, all fully owned so he can ride out any blip. Withdraw the idea of €300k MEW, keep it simple for now and keep house in Ireland and rent in Oz until you are happy. Best of luck. Whereabouts are you going to anyway and in what trade? Mortgage Equity Withdrawal.
 
Working as a mechanic, will probably go to either Melbourne or South Australia.
 
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