I am planning to move overseas for 2 years and I think about renting out PPoP in Australia. We have quite a lot furniture and white goods which I do not want to sell them when moving overseas. Where should I keep them? 1. Rent fully furnished house out 2. Keep in my friends' garage (not preferable, as they will fill the garage) 3. Keep in rented storage (too costly) Do you have any other options?
I'd try to rent out fully furnished if you can. Might even get a better return. Could you airbnb it? If it's in a large town there might be a professional management company that will take care of everything. Otherwise I'd pay for storage - I wouldn't want to burden friends/family with storing my cr*p for 2 years. Cheers Jamie
I would go for this option first but will depend on the location of the property as to whether it is suitable for a furnished proeprty? You could also consider short term rental and/or air BnB but location will determines the suitability of this strategy. If they are willing and able but might stretch the friendship. Offer some remuneration as well so it is a win win for both parties. If the above 2 options fail then this may be your only choice.
When we moved to Canberra the first time in 2006, we were here for 18months and stored a lot of our stuff at a professional storage place. It’s not too expensive if you pay quarterly or half yearly. I also called around and picked a place about 20mins drive away from our PPOR as it was cheaper and still had the security. We also paid for insurance for our stored stuff.
Had no problem with either. Most of the good storage places include good fumigation. Mine had a ‘closet camel’ moisture catcher thing included as well, I checked our stuff twice while we were gone and there was no moisture in it (in logan). Our unit was in the second floor but it is easy to also find out if they flood so that’s also good advice for the OP to check...
Depends on the quality of your "stuff" as two years very quickly turns into 4-5-6 ... If you can, rent the house furnished, but I'd only do this for holiday rentals as long term renters usually have all their own furniture and will usually treat yours like *****. We have several furnished short term holiday accommodations and the renters are usually pretty good ... need a good agent/manager though and they will charge around 20-25% of gross income (worth every cent). If it's for long term renting, and you're going to put it into storage, then I'd go through your stuff ruthlessly and only keep anything of quality, or sentimental value. Sell, or give away the rest. The cheapest, quality storage place we found for a houseload of furniture was around $290/mth - $3,600/yr - $7,200 for two years ... nearly $15,000 for four years ... then you really need to start weighing up how much your furniture is worth.
You could also consider PODS etc who will store your POD in a warehouse stacked up like containers, generally cheaper than self storage lockups
What’s your intent of moving overseas? To live and work? Or just an extended holiday. If the prior storing/keeping your furniture may impact your residency status for tax. This potentially costing you a lot more than just the storage, and way more than the ‘stuff’ is worth. Blacky
Price up all the options and comparative rental demand/ income in your area of furnished vs unfurnished. We had our stuff stored for years and no doubt will do it again. Too much fun to be had travelling to worry about storing furniture. Just pick an option and go for it! So, now that's out of the way where are you going?
Blacky's point is relevant, and a good one. If you are going to work and earn money in another country, you are potentially taxed in Australia on your overseas income. If the tax rate is lower in that country, and if there's a tax treaty with Australia, you will have to pay the difference to ATO. But you've already said that you will be overseas for just two years, so it probably doesn't matter if you have stuff here, you will still be regarded as a resident for tax purposes. Get some tax advice from somebody who really knows, before you go, if you haven't already.
Thanks for your advice. Very appreciate it! As I known, the tax rate in Australia is lower than my home country. Also income in my home country is very low, may not reach tax threshold in Australia,
So you earn less and pay more tax. It sounds like paradise. Remember that if you have income still in Australia (like rent) both incomes will be added together. I understand you doing it. Well done on making the move. If you have family, doubly so. My daughter is going to work in Vietnam next year. My wife and I would like to spend at least several months in Mexico.
It may all be relevant... or maybe not. Specific tax advice is required. You could en up being taxed twice (or not at all). Blacky
