ralphand nic

Has anyone considered this whilst still in the UK. Access equity /house sale funds and invest in property to let?

I understand that this has tax return benefits and gets you a credit rating, essential for mortgages/loans etc from Aussie lenders.

Saw ad in " Australia and NZ" mag Jan 08 and Feb 08 issue?

Sounds interesting.

Anyone got any ideas / good or bad experience in this?

NedKelly

Sure it's got tax return benefits. You will be making a loss and can offset it against any income you earn.

It ruins your credit rating as any lender looking at further borrowing from you will want to know how you are going to repay another loan now you have effectively reduced your income.

Swerv-o

It doesn't gain you a credit rating, and such a thing is not essential for obtaining credit in Australia. This is complete guff. Credit ratings here are completely different to the stupid system in the UK. You start from scratch, but are assumed to have a perfect rating. Only adverse credit history is considered here.

No adverse credit history = perfect rating.

Also, if you invest in an Australian based rental property before you arrive and purchase your main property, you may find that you do yourself out of valuable financial incentives such as the First Home Owners Grant and possible stamp duty exemptions (depending on which state you are heading towards).

Think very carefully, as you may find that a small saving in tax today could cost you a fortune in stamp duty further down the road.


S

Geelong Gent

It does not help with credit rating - the system here is based on reporting adverse credit history - therefore your best ever credit history is when you first arrive.

Beware property marketing shows offshore (ie central equity) ask yourself why they are not marketing locally.