Renting or Selling Property

Violet_12

Hi All,

Just after a bit of advice and words of wisdom...

We are relocating to the States sometime next year. We own a home in Kildare and have recently renovated parts of it. We are not planning on coming back to Ireland in the next few years. So my questions are:

1. Do we rent out our home to long term tenants, my only concern here is the state the place will be in should we ever decide to come back or sell. (I've heard horror stories recently of tenants and I'm not saying all people are painted with the same brush, however I'm not sure I'm willing to take the gamble...). I like the security of knowing that we still have a home here so that is definitely an advantage of this option.
2. Do we Air B and B our home, however this as far as my research goes looks like it could end up costing us more money.
3. Do we sell our home and invest the cash from the sale. The downside is that we won't have a home to come back to should we need it.

Any advice would be greatly appreciated.

Thanks a mil :-)

tradesman

After renting your family home it never seems to feel the same again. You will definitely need to repaint internally & maybe new flooring throughout. No one will keep your house like you used to keep it. From my experience I would sell, you can always rent when back or have a few places lined up for viewing before you come back

PhoenixParker

I'd wait three months after you go to make sure the move is working out, then sell. Way too much hassle to be a long distance landlord even with family and a decent agency on hand.

Onthefence

Based on our experience I would sell, sell, sell. I wish we had done so.

Violet_12

Onthefence wrote: »

Based on our experience I would sell, sell, sell. I wish we had done so.

Thank you,if you have time would you mind sharing your experience please?

Violet_12

PhoenixParker wrote: »

I'd wait three months after you go to make sure the move is working out, then sell. Way too much hassle to be a long distance landlord even with family and a decent agency on hand.

Thanks PhoenixParker so would you leave the house standing empty for three months before selling?

PhoenixParker

Violet_12 wrote: »

Thanks PhoenixParker so would you leave the house standing empty for three months before selling?

Yes, unless you can get someone to house sit.

Not often, but occasionally, big moves like yours don't work out right from the start. I'd want to leave it easy to come back for a very short while then assuming everything is fine I'd have it ready for the spring selling season.

I guess you could put it on the market straight away and not sign contracts until you're sure your happy in the US.

Definitely sell though.

dori_dormer

Definitely sell. The tax on non residents is 50% of the income and there are no deductibles. Letting agencies in Ireland are useless and do not look after property or tenants well. Its a a big burden to put on your extended family to vett tenants or check onproblems. You could have none or you could have one a week. If you aren't coming back for a few years definitely sell and put money inn a high interest savings account. You don't need the stress of tenants when you are trying to settle abroad.

Pkiernan

Be advised that if you sell your home in the same tax year as you are resident in the US you may have a tax bill to be paid to the IRS.
Capital gains tax will be assessed if your profit is $250000 or higher.
You can talk to an Ireland based US accountant.

Violet_12

Thanks everyone for your valuable input, given us loads of food for thought :-)

The_Conductor

Pkiernan wrote: »

Be advised that if you sell your home in the same tax year as you are resident in the US you may have a tax bill to be paid to the IRS.
Capital gains tax will be assessed if your profit is $250000 or higher.
You can talk to an Ireland based US accountant.

Google Boris Johnson and his struggles with the IRS- he ended up owing tax on the sale of his PPR in London..........

It is a concern- and you need proper international tax advice on this.
If this advice costs you a few grand (and I expect it will)- it'll have been money well spent.