Home insurance while moving abroad?

my475visaquest

I am wondering if anybody knows whether there would be a problem insuring my home while I go to Australia? I am going on a 3 year contract, and I have been told by a number of people that I will not be covered because the house in Ireland is unoccupied... even though a close relative is going to keep an eye on the place....
Anybody any experience with this?

dodgylegs

Hi,

Did you have any luck figuring this out?

I'm going to head out for a few years aswell, but dont know what to do with house.

thinking it would be better not to rent it out, as i wouldnt have to worry about. And if i rent it out i woudl loose my first time buyers which is worth about 9k over the coming years

Any help would be appreciated

kkelly77

I was recently ringing around for home insurance quotes if the house was rented out. I too was asked if the house would be unoccupied for X amount of time. It does seem to make a difference if you get cover or not if the house will be unoccupied.

If you are planning to rent out your house, then there shouldn't be a problem getting insured.

dodgylegs

thanks, thats good to know,

I now need to figure out if I would be better off keeping my first time buyers, worth 9k over the coming years or renting it out (which would probably only accumulate the same money). Think its going to be hard to rent it if I emmigrate. Keeping my first tme buyers and claiming i am still an irish resident would prevent me claiming i am a resident in australia, which would mean i woudl pay a higher rate of tax there.

any advice?

kkelly77

dodgylegs wrote: »

thanks, thats good to know,

I now need to figure out if I would be better off keeping my first time buyers, worth 9k over the coming years or renting it out (which would probably only accumulate the same money). Think its going to be hard to rent it if I emmigrate. Keeping my first tme buyers and claiming i am still an irish resident would prevent me claiming i am a resident in australia, which would mean i woudl pay a higher rate of tax there.

any advice?

What do you mean when you say 'first time buyers'?

I'd be surprised if you have difficulty renting out the whole house. Have a chat with a few local estate agents. Most provide a property maintenance service and will source tenants for you and collect rent for a percentage of the monthly rental income.

thenightrider

If you ring around you will be able to get insurance.

Just a word of warning if there is going to be no one living there turn of the likes of the water as if a pipe burst's and no one is living there they will not pay out. Happened to someone i know home was wreaked and they would not pay out :mad:

dodgylegs

kkelly77 wrote: »

What do you mean when you say 'first time buyers'?

I'd be surprised if you have difficulty renting out the whole house. Have a chat with a few local estate agents. Most provide a property maintenance service and will source tenants for you and collect rent for a percentage of the monthly rental income.

My TRS on the house is based on my first time buyers status, being a first time buyer the house must be your permanent place of residence. If i rent the house out it will no longer be my permanent place of residence, so i will loose 9k in tax relief at source on the mortgage over a few years. i wont get much more that 9k in rent, so dont want to run the risk of the house getting wrecked and be no better off financially. Plus i wont have the stress of dealing with estae agents or tenants!

Pugins

I remember they ask about occupency so there might be a loading for home insurance if its unoccupied. Also you will be liable for NPPR ( as it won't be your primary residence) and the Household charge.

We have our house rented through an agent who deals with tenants, inspections, maintenance etc. If you rent you must make a tax return also (agent will do on your behalf for a fee). Good news is that you can claim back any expenses you incurr against tax. These expenses include agents fees, maintenance and even depreciation of items you leave in the house. So you essentially shouldn't be paying any tax on the income.

jackbhoy

dodgylegs wrote: »

thanks, thats good to know,

I now need to figure out if I would be better off keeping my first time buyers, worth 9k over the coming years or renting it out (which would probably only accumulate the same money). Think its going to be hard to rent it if I emmigrate. Keeping my first tme buyers and claiming i am still an irish resident would prevent me claiming i am a resident in australia, which would mean i woudl pay a higher rate of tax there.

any advice?

Resident and resident for tax purpose are two different things, so you won't have to pay higher rate of tax if you declare as resident for tax purposes here.

dodgylegs

jackbhoy wrote: »

Resident and resident for tax purpose are two different things, so you won't have to pay higher rate of tax if you declare as resident for tax purposes here.[/QUOTE

thanks for clarifying, i'm stiill a little confused though. If i am a resident in australia "fox tax purposes", do i have to pay tax in australia for Foreign earnings i.e. rent?

hussey

dodgylegs wrote: »

jackbhoy wrote: »

Resident and resident for tax purpose are two different things, so you won't have to pay higher rate of tax if you declare as resident for tax purposes here.

thanks for clarifying, i'm stiill a little confused though. If i am a resident in australia "fox tax purposes", do i have to pay tax in australia for Foreign earnings i.e. rent?

If your rental income is from Australia then yes, if you are renting house in Ireland, then you should pay tax in Ireland for it

*I think*

podgie.

if the asset in Ireland, you pay the tax in Ireland, but you may have to pay tax in both countries depending on what the tax rate for rent in Australia is,

if the rate of tax in Australia is higher then Ireland, you will pay the excess to Australian government,

if Australia rate of tax is lower the Ireland, you just have to pay tax to the Irish government.
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if the asset in Australia, change the word Ireland to Australia up above, and the word Australia to Ireland up above. (same thing but you pay the Australian government first and excess to the Irish government)
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I'm not sure of the terms of the Australian-Irish tax treaty (if there is one) but that is how it works.

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You will be a Ordinary residence in Ireland. if you have been resident (183 days in Ireland) for the previous three tax years (2010-12) then you become ordinarily resident from the start of the fourth year (2013). If you leave the country, you will continue to be ordinarily resident until you have been non-resident for three continuous tax years (2015).