You may be living overseas and wish to sell your property in Australia. Regardless of why you’re selling, you’ll need to know how to go about doing so as painlessly as possible. Wherever you may be, you’re likely to reside a major distance from our sunny shores. So, what does selling your property from overseas entail? What do you need to understand before taking the plunge? First up, selling from afar is no different from selling when you’re residing in Australia. There are key points to keep in mind and choices that need to be made. Your most important decision will be choosing a professional real estate agent to act on your behalf. Yet, the definitive question is: what type of tax status do you hold? Are you a permanent resident or a foreign investor? Your status determines how much you’re taxed on the sale.

The first thing we’ll clear up is your tax status. The Australian Tax Office decides this according to how long you’re absent from Australia. If you mainly reside overseas, then you’re considered a non-resident for tax purposes. But if you live overseas but are generally domiciled in Australia and return home regularly, then you’re a permanent resident. If you’re a foreigner and wish to sell your property, then you’re beholden to foreign investor rules. If you’re unclear on the topic, you can visit the ATO website to clarify your status. When you choose to sell your property as a foreign resident, you’ll be subject to a capital gains tax on Australian real estate worth $750,000 or more. This means unless you own an outhouse on a cattle station, you’ll be subject to CGT. The buyer holds 12.5 per cent of the sale price and pays it to the ATO.

Appointing A Real Estate Agent To Sell Your Property From Afar

In regards to the aforementioned CGT, there are ways around paying the full amount. Those need to be investigated by the seller. They won’t apply to foreign investors but to those who move from Australia while owning taxable assets. It’s beyond the scope of this article to detail all that can be better explained by a financial professional. So, we’ll proceed on the assumption that the overseas seller is a permanent resident. Let’s assume that you’ve taken an extended break overseas and have decided that when you return you wish to upgrade. You don’t want the hassle of dealing with the sale when you’re home but wish to handle it all from abroad. This is a reasonable scenario to address the process as it awaits those who are far from home. The very first thing you should do is to find a real estate agent.

You will need reassurance that the real estate agent you choose is the best for you. After all, you’ll be trusting them to sell your property. Technically, you don’t need a conveyancer or a solicitor, but it’s probably advisable if you sell your property while you’re abroad. Chances are, if you’re holidaying in Monte Carlo, you’re more than likely to be able to afford quality advice. If not, you need to be as proactive as possible. This doesn’t mean you should take your eyes off the ball, even if you have the best advisors. Make yourself aware of any time differences so that communication channels remain open. Don’t become panicky either, since we live in an age of consummate connectivity. You can even relax in the negotiation and signatory phases. Given that you’re whooping it up in Monte Carlo, why wouldn’t you?

The Checklist

Is your best mate, Nudge, looking after your property while you’re away? Did you agree to let him stay so he could water the plants and feed the cats? If so, your only worry is that he might assert squatter’s rights when the property is listed. If you’ve leased your property to garner income in your absence, you must terminate the lease. We’ll assume you’ve abided by the agreement and aren’t turfing them out ahead of its expiration. If you’ve engaged a property manager, then just notify them. Once they’ve gone, you or your agent will need to arrange for professionals to spruce up the place. Preparing your house for the market is the most important thing. Your agent should be able to arrange for a gardener and cleaner. You might decide to employ a home stylist as well, which always gives the seller an edge.

Once the house and garden are up-to-scratch and you’ve attained maximum kerb appeal, you may want to seek a valuation. We’ll disregard the valuation process at this point and take it for granted that you’ve settled on a selling price. Your agent should have listed your property and been busy advertising it on all the media available. If you don’t have an agent and are selling by private treaty, you’ll be spending less time by the pool. Rather, you’ll be anxiously sitting at your laptop and checking to see whether or not you’re getting offers. In any case, you’ll have to decide whether or not you’re selling by auction or conducting inspections. At this stage, it won’t hurt to ask a friend or relative to drop by and ensure everything’s hunky-dory. It’s not that you don’t trust your agent, but it’s good for peace of mind.

The Day You Sell Your Property

When the day arrives, when your agent informs you there’s a fish on the line, then comes the negotiating. You may consult back and forth with your agent, although you should by now have complete trust in them. Once you’ve agreed on a price and the seller is happy, you can consent to close the deal. Since you’ve hired an agent and a conveyancer, all you need do is sit back and relax. But given that you’re in Monte Carlo, there’s a chance that you’ve been seduced by the allure of their casinos. Now is not the time to give in to temptation. Wait until the agent and buyer have shaken hands. Once the papers are signed, you can blow it all on red or black, depending on your choice of game. We’re being flippant, but we’re also emphasising how easy it is to sell your property while abroad.

Your primary concern is that you’ve engaged a qualified real estate agent. After that, you just need to ensure you’ve adhered to the checklist. Any tenants have been given notice, the property is presentable, and the listings are accurate. Distance is no barrier to getting these things done. You can micro-manage this from the comfort of wherever you’re staying if you’re so inclined. Once you’ve sold your house overseas, you may want to buy a new property. If so, that’s practically as easy as selling it from afar. Indeed, it was the subject of our previous blog, in case you missed it. Naturally, our scenario involves a seller who is not using their property as a commercial asset. If you are investing and inviting tenants, then there will be different conditions. That’s a matter of advice between you and your financial advisor. Otherwise, pop the cork and celebrate!

Conclusion

There is no pressure when you sell your property while overseas. The only stresses relate to whether or not you’re a resident for tax purposes. Thereafter, it’s down to whether or not you’re buying an investment property or a home you plan to live in. Something is quite attractive about selling your property from afar. There is a great deal of stress involved in selling a house. But when you’re overseas and removed from the worst of it, then it’s a matter of your state of mind. The heavy schlepping that would otherwise be involved is left up to others. Your life has been made as salubrious as possible because of your real estate agent. This is where they bring their A-game. If you’re selling your property and need that sense of well-being, contact Perfect Agent. We’ll connect you cost-free with the best agent for you!