Want to take up work in Oz but have mortgage!!!

D

Dustyman

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Hi all,

I have a chance to go to Australia for a year, possibly longer, and take up employment there (guaranteed work). I'm a mechanic and i have a job waiting for me there.
Problem is I have a mortgage here and I'm only just 1 yr into that mortgage. It was a 100% mortgage on a 3 bed duplex. Its in a big town, good location.There's 167k outstanding (fixed for 3 yrs at 5.3% with IIB). I've also an 18k loan with BOI at 7.5% and 7k on credit cards I'm switching to 0% offers. I've only about 1k in savings :-( . And yes I completely accept responsibility for my financial mess.
I could try and rent the duplex but frankly I don't want to 'open a can of worms' so to speak with the revenue and my mortgage provider re claw- back, conditions etc
I could rent 2 of the rooms and keep 1 (pretend it is my principal residence)? or does anyone think I could get payment breaks eg for 6 months or interest only for 6 months on my mortgage? or would I have any chance of re-mortgaging and getting a variable APR.
Or should I sell it and get out or should I just accept my lot and stay here.
Sorry to go on so much. Please advise if you could. Brutal honesty too.
 
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If you 'pretend' that you still live there you will be committing fraud. Might just open a can of worms which you will not want.

Best advice is to try and sell and cover all your debt.

The good news is that the aussie dollar has dropped by about 40% these last 4 months. With rising umemployment and a slowing economy, the dollar will fall a bit further. Any savings left over after you have cleared your bills should be converted into dollars, say 1/2 when you move, and remaining in a few months time to average your cost.

Good Luck.

p.s. i moved back to australia this year. great place to live.
 
If you may only be able to stay in oz for a year you may end up worse by going. Worst case scenario - You have to come back here in a year because you get booted out of oz. No harm putting it on the market now and renting out 2 rooms at the same time. If you can sell now at a loss better than 2 years at a bigger loss.

It's tough putting things on hold but I've consigned to doing that till 2015. It's a big psychological shift.

If you went to oz for less than 6 months would you duplex still be your principal residence? I think it might be. Isn't there something about you have to be in the country for 6 months.

Go to oz for 5 months and save every penny
 
Dustyman said:
I could rent 2 of the rooms and keep 1 (pretend it is my principal residence)?
Click to expand...
Do you think that perhaps those smart guys in Revenue might notice your lack of taxable income over the period that you are supposed to be living here?
 
Hi there,

We are going to Oz too, but hoping to move over permanently.

From what I gather, if you rent out your property and just rent in Oz, your irish property is still deemed your primary residence for up to 2 years (dual taxation agreement, though please double check!).

If you can rent, I would (especially if your going over short term). Speak to your mortgage provider, and as you suggested, ask for a mortgage holiday or interest only. If you go interest only, will the rent cover the mortgage?

Then how about the other repayments? bank loan and credit card?
With the aussie dollar exchange rate, it means its very expensive sending back money from oz. I have a niece sending back money to cover a student loan 200 euros but its costing her 425 dollars. Do you have a car of anything you can sell to try and pay any of these off?

Im not a financial expert, just doing similar (we are hoping to sell though).
There are a few good sites for people moving to oz;
www.irishozforum.com
www.pomsinoz.com

Good luck and have a great time in oz.
Cheers
Caz
 
Thanks for replies folks and info. contained therein. Much appreciated. I'm thinking long and hard about the situation.
 
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