Gazzap

Not wanting to count our chickens...etc, but it appears we are nearing the end of the visa process.

I thought I knew the answer to this (sell up), but have recently been having thoughts on other ways of accumulating enough money in Aus for:
a/ The $100k bond
b/ Money to get started- rent, expenses on arrival
c/ Starting/buying/investing in a business

I doubt that we have enough 'equity' in our house, so I guess a 2nd mortgage is a consideration other than selling up? What with interest rates in UK being lower than Australia? I guess getting any credit or a mortgage isn't going to be easy initially on arrival over there?

If we re-mortgage, we should easily cover our first mortgage by renting it out, with a little to spare hopefully. Then we'll just need to be paying our 2nd mortgage....

I was wondering if others have had to make a similar decision, or if in hindsight anyone might have some advice? Or is there something obvious I am not considering?

Cheers
Gaz

walaj

For starters, have you taken into account the tax implications plus costs of someone/a company managing your property in UK?

Wendy

I think you may find it hard covering UK mortgage payments when you are earning Australian Dollars. Especially when you take into consideration the fact that you'll have to pay comission to convert your cash to pounds.

Not only that, but don't you have to pay the first mortgage off to be able to get a 2nd one?

Gazzap

Hi,
No, not yet (financial advisor appointment booked ).
Are you able to enlighten me?

Cheers
Gaz

Gazzap

Yeah, as I say, I'm not sure it'll work, hence the questions
Assuming we have some money over from the tenants, that will hopefully help with any comissions and still be cheaper than Oz interest rates?

2nd mortgage- http://en.wikipedia.org/wiki/Second_mortgage

Wendy

We are paying 7.25% (fixed for a few years) per annum, but there is talk interest rates will go up again. Get that advisor of your to do you a few possible scenario's and see which way you are going to be better off.

Gazzap

Hi
I assume you mean 7.25% in Oz?
I don't think an Oz mortgage will be an option immediately for us- as (currently) no job, not much to put down as a mortgage deposit.

I was really hoping for advice on either selling up here in UK and trying to use what we have from the sale. Or try to sort out a 2nd mortgage, or similar.

To be honest I am a little dubious anyway about jumping straight in to the property market in Australia- I would rather rent, and use what money we can secure for a business/investments. Then maybe buy a house later.

Cheers
Gaz

acbh2

Would the second mortgage be a buy to let?

You could get a buy to let mortgage that releases all the equity in your house but has lower payments than a standard mortgage as you only pay the interest. could be good for a short term thing.

We had considered this but think we're just gona sell as we've got a lot of equity and couldn't get a big enough buy to let to release it all.

Axx

InBetween

I think you are right to be dubious - you really need to get a feel for where you want to live first, this will also be determined by your Business, no good living in the outback selling surfboards , if you know what I mean.
Having said that, it doesn't hurt to talk to a local IFA, so if your headed to NSW and need free advice then PM me and I will give you a email add. of a company and to write to, they will give you some sound advice on both personal mortgages and business planning.
Personally, I would rent first, and if you do rent - try an offer to pay up front for a reduced rental - some agents will barter the rent down on this.
Good Luck whatever the choice.

Gazzap

Yes, possibly- we are open to advice
Cheers
Gaz

Gazzap

Thanks- PM sent.
Gaz