View Full Version : Rent out or out right sell?
11-26-2007, 09:46 PM
So, lets say you move to Austrailia and you plan to go for a few years (with a open mind of living there and or coming back. What do you do? Rent your house here in CO to break even on the loan or do you sell out right?
While Sydney is nice, the prices of real estate just makes my jaw drop and makes me second guess if I want to go out there. Should I not buy a house and just rent out there? I have two dogs so thats a concern to me...
The problem with renting when you are halfway around the world is that you can't stop by to check up on your place. However, if you're definitely planning on returning, then renting is probably the way to go.
11-27-2007, 12:01 AM
Agree with Matt on the problem with renting out when you are that far away...Is the house something that you would want to return to? By that I mean is it something you really want to hold on to?
If you do rent it out, include the water bill in the rental cost and pay the water bill yourself. I don't have first hand knowledge of this but I have heard that in Colorado a lien can be put on a home for failure to pay the water bill :eek: - So as I understand it, most folks that rent out homes pay the water bill regardless to fend off any issues.
11-27-2007, 06:31 AM
I know it can be done...my dad was in England for a couple of years, and he rented out his home in Austin. Maybe check with some property management companies? I just started renting out my other house, and so far so good but I couldn't imagine doing it myself half a world away!
Also with the market the way it is, I bet you're better off selling it in a few years than now, but then again, it would be cool to just shell everything and head to OZ!!
11-27-2007, 08:22 AM
I say sell the house, then invest whatever extra money you've got after the mortgage is paid off. That equity will probably grow faster when invested well than it would if left in your house for the next two years.. but don't give yourself a head ache and take on the rental, and don't force yourself to come back in 2 years, and don't worry about being able to buy back into the market here when you return. ok that's my 2 cents, fwiw. :beer:
11-27-2007, 08:49 AM
There are advantages to each, depending on a ton of factors. Is your mortgage such that you could rent it, pay a 8-10% mgmt fee, and still (at least) break even?
It's a tough market to sell right now, but if you thought you could sell it relatively painlessly and easily, that would make life easier, and you'd have money to invest elsewhere. I think there is more demand for rentals because some people are afraid to buy in this market. Depends on where you are located to some degree.
Another nice thing about rentals is that you can depreciate the property on your tax returns, and itemize money you have to sink into it for upkeep. But even with a mgmt company doing a lot of the work for you, it's still kind of a PITA.
When I went to college my parents moved to Germany and rented out our house. The good news is that they had a decent rental income that funded about 50% of my school expenses. The bad news is that the house appreciated for about 4 years after they left, but then the bottom fell out and they ended up selling it 2 years after that for just about what they paid for it (but this was in Georgia, not Colorado).
11-27-2007, 03:12 PM
If you rent, make sure you have a real estate attorney who you can call if you need to get the tenants in line or evicted.
Oh yeah.... I'm a real estate attorney! :-)
Seriously, if you want we can take 15-20 min on the phone sometime and chat about the issues.
11-28-2007, 06:58 PM
Another nice thing about rentals is that you can depreciate the property on your tax returns, and itemize money you have to sink into it for upkeep.
Maybe not if your income is from Australia?
Renting is very common in the town where I live when folks leave. It is an Air Force town. One of my friends is a retired Kernel. They are making bank. They bought 16 houses during their time in the military. They've been renting them out. Most of them are near paid for. Talk about a nice retirement income.
11-28-2007, 07:03 PM
Its a tough call....
to move a dog is $4800 x3 (and I can't even think about leaving one behind. They love each other and are all family.)
Moving cost... $3k for myself and my soon to be wife....(maaaaaaaybe covered by work)
Who knows what else....so we don't know yet until the terms are laid out if I make it that far.
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