Leaving our jobs, renting out our house and going travelling.

Happyhouse22

https://www.boards.ie/discussion/comment/118694324#Comment_118694324

Ya Australia is expensive alright. We lived there for a year prior to covid so want to go back and connect with a few people. Will stay with family mostly there so hopefully that reduces cost - but even at that we won’t stay too long for budget reasons!

Interesting that New Zealand was cheaper - in 2019 we def found New Zealand a bit more expensive than Australia - that said we were doing “touristy” things there whereas we lived and worked in Australia - so different kinds of costs.

Hopefully the affordability of India and SEA balances out Australia.

Then thinking Peru and Colombia in South America so hopefully not too bad budget wise too. We visited Brazil and Chile in2017 amd found them very expensive too.

yagan

https://www.boards.ie/discussion/comment/118694369#Comment_118694369

Worked in oz too but travelled in NZ in the shoulder months when the locals weren't on break. If you found Chile expensive then I'd highly recommend Ecuador for chilling out, Cuenca was bliss.

cj maxx

OP, 1 question. After your done travelling, what happens your tenants ? Might not be that easy.

Happyhouse22

https://www.boards.ie/discussion/comment/118694724#Comment_118694724

Will definitely hope to spend a few days in Ecuador.

Happyhouse22

https://www.boards.ie/discussion/comment/118695267#Comment_118695267

If we get the tenants we want they will be looking for a mortgage. So hopefully they will find a place exactly as we return :)

If earlier that’s okay - maybe we can Airbnb for a few months

if later they could stay with us for a period (only really willing to give the place to close friends we can trust)

neenam

Given that you wouldn't be readily available to come to the house if any issues required immediate attention - what would happen if say a tenant had an accident (as in a physical injury) or something else that would require them to leave at short notice? Need to consider hiring out tradespeople and cleaners as well, and you may run into bad luck with them - seems a lot of hassle that is made harder by the fact that you wouldn't be in the same country. It seems as though a property management agent would be needed.

Other things - Check the mortgage contract, would this be permitted, will changes made to the mortgage be required, paying more interest during this period? Would the lack of a fixed postal address be an issue? Landlord insurance against the property - and how much is left over to support yourselves after all those expenses.

I'm not an expert so what I've said may not be 100% accurate, but just some things to consider....

Another option: https://www.homeexchange.com/

cj maxx

https://www.boards.ie/discussion/comment/118695999#Comment_118695999

I'd still be worried that , given the housing situation In Dublin ( I'm assuming you're in the city ) they would dig their heels in. I suppose close friends at a good friend's rate might work if the situation is agreed. Good luck.

Happyhouse22

https://www.boards.ie/discussion/comment/118696274#Comment_118696274

My uncle lives next door (in fact acces to our house us through his land) - I’m sure he would manage the property and keep everything working for us.

No mortgage so okay on that front.

Happyhouse22

Ya In Dublin alright

I def get what you are saying - will only consider certain friends too 😆

Happyhouse22

Thanks for all the comments - very helpful

thehairygrape

first off, go for it. Enjoy and best of luck with it. If you have no mortgage and a relative nearby, I’d not rent at all. It’s just a hassle you can do without. Something always goes wrong and you might be someplace where it’s not so easy to get it sorted. Just my twopence worth.

Happyhouse22

https://www.boards.ie/discussion/comment/118708489#Comment_118708489

Thanks - look that definitely the ideal situation. We don’t want to rent our new house out really but it seems like such a waste not to.

Go for it if your able. There is a whole world out there that most will never experience.

enricoh

By the time you get back sinn Fein could be running the show and paying rent will be totally optional! I'd only rent to someone building / renovating a house even if it meant saying no to the first 100 people. I've heard of people renting to eg Google to house staff but dunno the in n outs of it.

A few months in South America never did anyone any harm!

Mrs OBumble

https://www.boards.ie/discussion/comment/118711216#Comment_118711216

Would there be any BnB market for it? A few short term lets might get you as much as a regular tenancy, without the overholding risks.

Tip: a friend of mine does a bit of it in her home. Has still had people from booking.com, even when airbnb.com dried up with Covid.

Gant21

Your friend is sharing more than her home

Happyhouse22

https://www.boards.ie/discussion/comment/118711413#Comment_118711413

Solid advice, pretty determined to rent to trusted friends only...

Happyhouse22

https://www.boards.ie/discussion/comment/118711961#Comment_118711961

We definitely considered it.

But two concerns

1/ it is against the terms of our planning permission, not sure how these things are checked? I’m guessing it would only be an issue if so,done complains but still a consideration.

2/ What If someone destroyed the property - feel like this could easily happen over a party filled weekend!

Haven’t completely ruled it out as an option - but certainly not the first choice for now.

Happyhouse22

https://www.boards.ie/discussion/comment/118711967#Comment_118711967

In what way?

Yoya432

https://www.boards.ie/discussion/comment/118712151#Comment_118712151

Would be surprised if any local authority enforced something like this - of course if someone complains it might be another story.

Happyhouse22

https://www.boards.ie/discussion/comment/118716063#Comment_118716063

I think we would risk it - if it makes sense to Airbnb otherwise

_Brian

No mortgage is the big deal here.

with many people expecting a recession you have to prepare for a period of non rent payments or reduced payments. It was very common during the last recession and encouraged by many support groups as tenant rights are so strong.

yagan

The question of renting out your place has only arisen because you will be away on adventure, so essentially any rental return is secondary to enjoying your travels.

So to recap to only two obvious pluses

1. rental return
2. someone you trust looking after the property.

The downsides are multiple,

1. Not having a place to return to if you or someone at home becomes ill.
2. Possible tax implications
3. tenant might not pay; even a trusted friend can fall on hard times.
4. The cost of putting valuables in storage
5. The hassle of fixing house problems for a tenant while on the far side of the world will cramp your enjoyment of being away.

Or look at them as being advantages of not renting out your place.

1. No hassle if you have to return suddenly.
2. No storage costs or headaches for valuables and cars.
3. Not having to deal to tenant who refuses to leave.
4. No tax implications needing sorting out.
5. Simply drop you rucksack and collapse on the bed on return from the airport.
6. No sudden phone calls about leaking pipes, broken machines when you're chilling on a beach or on a ten day jungle hike.

The only thing you're missing out on is possible rental return for the time you're away which you could as quickly blow on a kitchen refit, whereas the memories of your adventure will stay with you for life.

For us there is a distant possibility that we might go abroad again with work for a year or two, but in chatting about it and having had to come home suddenly before we're adamant that our house remains our haven, our retreat, and we want need it constantly to be available.

CreadanLady

The big risk with getting tradesmen, or managment agents, cleaners etc involved is that as soon as they hear that you are out of the country they will commence their opportunistic shenanigans to get a piece of the pie, knowing that you are not around to keep tabs on them.

Cleaners alleging here is a leak so her plumber friend gets a days "work" out of it.

Management agent claiming a few tiles blew off on a windy day but he knows a good fella who will fix for a few hundred.

Cleaner swiping things out of the house and later claiming that air bnb guests must have taken or broken it.

Any of the above keyholders opportunistically using the house to put up friends, parties, entertaining mistresses, or letting it out under the radar for cash during periods when there is no air bnb bookings.

I'm telling you, this opportunistic chicanery goes on.

Furze99

https://www.boards.ie/discussion/comment/118711331#Comment_118711331

Like what? Sure differences in culture, scenery & weather. But human beings are much of a muchness the world over - the same basic needs and preoccupations. You don't have to travel from Ireland or even your own locality to see the best & worst of people.

In fact, the closer the look at your own locality, the more there is to be seen.

Happyhouse22

https://www.boards.ie/discussion/comment/118718227#Comment_118718227

Thanks - lots to think about there..

1. Not having a place to return to if you or someone at home becomes ill. A definite consideration - we would have other accomodation available but would obviously prefer to return to our own home.
2. Possible tax implications- Would be minor I think
3. tenant might not pay; even a trusted friend can fall on hard times. Could happen - but would be relatively confident. To be honest it’s. A lose friendship so if the genuinely hit in this position we would probably be happy to let them stay for free anyway.
4. The cost of putting valuables in storage - would probably keep a room in the house with all our stuff.
5. The hassle of fixing house problems for a tenant while on the far side of the world will cramp your enjoyment of being away.Ya this is a big one- would have people around to help at home but still a huge consideration.

Happyhouse22

https://www.boards.ie/discussion/comment/118726488#Comment_118726488

Thanks I would worry about all these things- but having family around nearby should definitely help.

Nearby as in they can see if the lights are on - and the two houses share an entrance.