We are trying to decide where we shall receive our income when we move onto a narrow boat early next year, our options at the moment are....
1. Keep our house here in Australia and rent it out.
Pros ...we keep a nice house to return to and it should carry on increasing in value.
Cons... it is a old house and with a swimming pool, which is very high maintenance and therefore too much of a risk and expense. (So we have ruled out option 1).
2. Sell the house and buy a smaller town house or unit and put the rest of the cash into a term deposit which at the moment in OZ are paying approx 6.5%
Pros...should get a good rental return and property should increase in value and not a bad term deposit rate.
Cons...cost associated with renting out a town house or unit as in Strata fees, landlord insurance, rates and risk of property remaining vacant. If the exchange rate between the Aussie dollar and British Peso swings the other way we could be go a bit short in the UK.
3. Sell the house and buy nothing and invest the money in a term deposit etc.
Pros...guaranteed income and safe.
Cons...no capital gain on property.
4.Buy a house or unit in the UK and invest the remaining cash in Oz in a term deposit etc .
Pros...the income on the UK rental will not be affected by currency swings, as we will be living in the same country as our investment. If we buy in the UK the property could increase in value and if the exchange rate swung the other way it would be a double whammy effect if we return to live in OZ.
Cons...we don't know the UK housing market... ??will the English property market carry on dropping.
So there you go! What to do ?! Of course the other thing is we don't know if we will return to OZ to live after our little adventure, but that will be another post. :)