If you are a homeowner who will soon be working overseas, you have many decisions to make regarding your house. Should you keep the house or sell it? Should you rent out the space? Should you make changes to your mortgage based on your current plans?
The answers, of course, depend on your personal situation. However, if your company is moving you abroad, you will likely receive several perks, including housing that is paid for when you are abroad as well as travel allowances and sometimes hardship pay, all of which can translate to a nice increase in pay. If you are going to be living in a country with a lower standard of living and you are going to also receive an increase in pay, you could find yourself in an enviable position of having quite a bit of extra cash.
Strategy One—Keep the House and Make Extra Payments
Several months before your move, if you decide you want to keep your home, you may want to compare home loans. With all of the extra allowances you will receive living abroad, you may find that you will be able to put more money on your mortgage and pay it off faster. In this case, a flexible mortgage may be right for you because it offers you the flexibility to pay more on your loan without incurring any penalties for early payment. If you are living abroad for several years, you may find that you have enough money to pay off your home during that time. You can use a loan repayment calculator to help plan how much extra you would need to pay on the house to pay it off while you are abroad and making extra money.
Strategy Two—Sell the House in the Next Few Years
If you don’t feel comfortable making any plans for your home before you move but think you may want to sell, you might want to consider refinancing and taking out an adjustable rate mortgage. Some adjustable rate mortgages are adjusted five years into the loan. If you can get a low interest rate now, you can continue making payments, and you will have five years to make up your mind whether or not you will keep the house. If you choose to sell before the adjustment at five years, you have saved yourself interest on your payments, and you do not have to worry about refinancing when the rate is set
to adjust. In addition, refinancing may reduce your monthly payments, so you will have more money to enjoy overseas, which may give you the opportunity to travel more.
Moving overseas to work is an exciting prospect. Still, before you can enjoy the move, there are many things you must take care of at home. Deciding what your future plans might be can help you determine if you want to sell or keep your home. If you decide to keep it, refinancing may be necessary to help you live a comfortable life when working overseas.