renting flat out or high int account?

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Apr 9th 2007, 3:50 pm

Loiner

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Joined: Feb 2007

Location: Leeds

Posts: 120

renting flat out or high int account?

we are trying to decide what to do when we move to Quuensland. Buy a flat in North Leeds with equity in house (£135,000) and rent out for £550 a month or take money with us and put in high interest account. Not sure which would give us best return for about a year or two?? im not sure what interest rate would be in Oz in high interest account or what tax we would have to pay on rental income from UK.

Apr 9th 2007, 7:17 pm

Grayling

Bitter and twisted

Joined: Dec 2003

Location: Upmarket

Posts: 17,503

Re: renting flat out or high int account?

Quote:

Originally Posted by Loiner

im not sure what interest rate would be in Oz in high interest account or what tax we would have to pay on rental income from UK.

They will both be taxed the same as part of your annual income.You are taxed on your worldwide income from any source.

there are ways to offset tax on rental income.

G