Bed Of Roses

Mornin Australia, evenin UK and hi anyone else in a dif time zone.

A question for the the learned many,

Sell up the abode in the UK or rent it out?


What are the Tax implications of renting out here in the UK to pay the Mortgage on our UK property and will this impact us trying to get mortgaged in Australia?? Will the Oz banks lend again ie 2 mortgages?

We will have some spons to take to Aus with us for a sizable deposit but possibly may not find work as readily as some people may think.

We are not getting cold feet but would like a bridge back to the UK if for some reason we don’t like Oz i.e. climate no work the usual sort of stuff.

If anyone has actually done this type of thing I would be most interested how you faired. I know the big boys of the site will have advice but I would like to here if anyone has actually done it or is about too.

Thanks in anticipation.

Uni.

snowhite

Funny ,my husband has just got out of a meeting with his accountant where they were discussing this very subject !!!
From the British side of things it seems like we are selling but he is still to check out the Aus tax side of things ?

Bix

Good question.
Check out this thread which has been going over the last few days and discusses tax issues etc:-

"Have you rented your UK home out ?"

Bed Of Roses

Nice Bix Will Do

Ta.

Thomaz

As Bix says, you should refer to the other thread for all the tax implications.

I seriously looked into renting my UK house out but came to the conclusion that as I believed my chances of staying in Australia were greater than returning home, it would be better to sell rather than pay the Australian government tax on income and more importantly, Capital Gains Tax when I eventually sold after a period of renting.

For what it's worth, for me, that may have been the wrong choice. For you...

What do you think house prices are likely to do over the next year or so in the UK? As interest rates are on the rise I am wondering if there might be a period a stability for the next year or so. Well, I'm hoping more than wondering as I would like to think I can still get back on the property ladder if I decide to return at some future date.

katiej

Hi Ya
Two years ago we bought a house in Brisbane Queensland. We had been working in the UK for one year and had a sizeable deposit but no other assets. and we did get a loan. There is a company here called Aussie Home Loans (mortgage brokers) that we have found are very flexible and better than banks to deal with.
As for selling up right away. Our advice is DON'T. You just may need that bridge, I'm not being negative but realistic. Australia is a beautiful place but so is the UK in many respects. The culture here in Australia is VERY different and you may find that it grates on you after awhile.
I am Australian born and I live in the UK for the past three years and am returning back this year. I've been back in Australia now for almost a year and have found the transition back very difficult.
You will find that Melbourne is more suited to the English sensibilites than any other city in Australia. The further north you go the more 'culturally challenged' it gets. Take my word for it. I DO know of what I speak.
The cost of living here compared to the UK is slightly cheaper (not in metro sydney though). Housing prices in Melbourne and Sydney are the most expensive and Brisbane Perth less so. However my choice is go for Melbourne anyway.
But if you are looking for warm weather then maybe Brisbane is your thing (tropical) Rental properties in Australia are not generally furnished and the ones that are are very expensive.

Good luck
Cheers
Katie J

hevs

Nige,
some people we have met overhere have got one property in high wycombe, which they rent out and declare on their Aussie tax return, one property here which they live in and are building another one. Is it worth it? They say a big fat YES if you can afford to do it!
If you need any facts and figures pm me and i'll help if i can
H

Bed Of Roses

Hi Heather

Cant wait to live the dream, but i still am trying to keep a grip and take the odd rain check my parents did the emi thing about 15 year back and now they cant afford to come back and unfortunately they want too!!!

I am 99.9% sure I will cope with the heat but her indoors??

The chips and sausages are awful from what U say I may not be able to cope

Still the beer is always cold .

ABCDiamond

I agree, if you can AFFORD to keep a property in the UK do so. But remember the potential difficulties with tenants etc.