who else can't sell house in Uk and has visa
#31
Re: who else can't sell house in Uk and has visa
Yep it comes up time and time again and most people aren't aware of the implications of not selling their house when they move to Oz.
So we'll get a ruling from the ATO to say how long we have to take our house sale money to Oz before we are taxed on it and we'll abide by their ruling.
So we'll get a ruling from the ATO to say how long we have to take our house sale money to Oz before we are taxed on it and we'll abide by their ruling.
#32
Forum Regular
Joined: Jun 2008
Location: Dorset
Posts: 39
Re: who else can't sell house in Uk and has visa
Hello All,
We know exactly how you feel..... we had to drop the house price by 20K, gutting at the time, but we had an offer on Saturday, of which we accepted!!! So we will be over to start our new life in June! Staying with my Mum before. The reality is setting in though, the new owners want to be in in 6 weeks, so the packing and sorting has begun, big time! As well as both working full time and two young boys...... but at least we haven't much time to panic!!!!
Good luck to everyone, hang in there!!!
Katie and Paul
We know exactly how you feel..... we had to drop the house price by 20K, gutting at the time, but we had an offer on Saturday, of which we accepted!!! So we will be over to start our new life in June! Staying with my Mum before. The reality is setting in though, the new owners want to be in in 6 weeks, so the packing and sorting has begun, big time! As well as both working full time and two young boys...... but at least we haven't much time to panic!!!!
Good luck to everyone, hang in there!!!
Katie and Paul
#33
Re: who else can't sell house in Uk and has visa
Hello All,
We know exactly how you feel..... we had to drop the house price by 20K, gutting at the time, but we had an offer on Saturday, of which we accepted!!! So we will be over to start our new life in June! Staying with my Mum before. The reality is setting in though, the new owners want to be in in 6 weeks, so the packing and sorting has begun, big time! As well as both working full time and two young boys...... but at least we haven't much time to panic!!!!
Good luck to everyone, hang in there!!!
Katie and Paul
We know exactly how you feel..... we had to drop the house price by 20K, gutting at the time, but we had an offer on Saturday, of which we accepted!!! So we will be over to start our new life in June! Staying with my Mum before. The reality is setting in though, the new owners want to be in in 6 weeks, so the packing and sorting has begun, big time! As well as both working full time and two young boys...... but at least we haven't much time to panic!!!!
Good luck to everyone, hang in there!!!
Katie and Paul
Not jealous at all...no sirreee.
#34
Account Closed
Joined: Jun 2007
Posts: 8,913
Re: who else can't sell house in Uk and has visa
I am looking to buy in the UK having lived in OZ for 3 years. The problem i face is that some people are not prepared to drop in price at all. I have offered on 3 houses (all said no) as they can't afford to drop a penny. But to buy a house that isn't worth what they are asking (because they owe more than what they paid for it) is no good to us as we could end up in negative equity too with it.
It is a vicious circle.
It is a vicious circle.
#35
Just Joined
Joined: Jan 2007
Posts: 26
Re: who else can't sell house in Uk and has visa
It seems to me that the recent uptick in the UK property market has been confined to London and the South East. I know a couple of local estate agents very well and they tell me a lot of deals over the last year have been from cash buyers (and I'm not talking about bankers). Ordinary people with a bit of money in the bank have been buying houses (rather than flats) for cash - their thinking seems to be that they're earning little interest in the bank and houses always go up.
Where is the UK economy going next? The Bank of England has printed and spent nearly 200 billion - with the admitted intention of maintaining asset (house) prices. The government/BOE has been desperate to avoid a house price crash before the election - hence interest rates at half a percent. Their strategy of making it pointless to keep money in the bank and of printing money to support asset prices has worked. House prices seem to have stabilised. But, all they have done is put off the day of reckoning until after the election.
If, at any point, investors decide UK government debt is risky, they will demand a higher risk premium. In simple terms this means there is the potential at any time for interest rates to be moved upwards sharply. For all of you waiting to leave this dump, this will be great news - in one way - because sterling will recover some of its recent falls against the Australian dollar. The flip side is WHEN (not if) interest rates rise, the UK property market may well crash. When this government's insane spending practices come to an end, the recession will deepen. We've had 10 years of growth between 1997 and 2007 caused by a massive growth in consumer spending fuelled by debt. It led, inevitably, to a credit crunch.
Since then the government has taken over the borrowing. Sooner or later the government will have to stop borrowing. Interest on the debt will become unmanageable if they continue. When the government stop borrowing, the economy will decline again.
All in all, it's not a rosy picture. If I were moving to Australia at the moment, I'd sell up for whatever I could get, keep a chunk of the money in Sterling (it will go back up again) and rent in Australia. House prices in Australia are ludicrous and must fall in time.
Where is the UK economy going next? The Bank of England has printed and spent nearly 200 billion - with the admitted intention of maintaining asset (house) prices. The government/BOE has been desperate to avoid a house price crash before the election - hence interest rates at half a percent. Their strategy of making it pointless to keep money in the bank and of printing money to support asset prices has worked. House prices seem to have stabilised. But, all they have done is put off the day of reckoning until after the election.
If, at any point, investors decide UK government debt is risky, they will demand a higher risk premium. In simple terms this means there is the potential at any time for interest rates to be moved upwards sharply. For all of you waiting to leave this dump, this will be great news - in one way - because sterling will recover some of its recent falls against the Australian dollar. The flip side is WHEN (not if) interest rates rise, the UK property market may well crash. When this government's insane spending practices come to an end, the recession will deepen. We've had 10 years of growth between 1997 and 2007 caused by a massive growth in consumer spending fuelled by debt. It led, inevitably, to a credit crunch.
Since then the government has taken over the borrowing. Sooner or later the government will have to stop borrowing. Interest on the debt will become unmanageable if they continue. When the government stop borrowing, the economy will decline again.
All in all, it's not a rosy picture. If I were moving to Australia at the moment, I'd sell up for whatever I could get, keep a chunk of the money in Sterling (it will go back up again) and rent in Australia. House prices in Australia are ludicrous and must fall in time.
#36
Banned
Joined: Aug 2008
Posts: 22,348
Re: who else can't sell house in Uk and has visa
SinkingShip's sound analysis of the situtation makes me wonder whether I should be putting the house on the market now to avoid falling foul of a double-whammy loss.
#37
Re: who else can't sell house in Uk and has visa
In a sense (at least for those of us trying to "gap it") thanks to "New" Labour's quantitive easing, we are suffering house price devaluation by stealth. Then again, without quantitive easing the house prices would have crashed. We're buggered whichever way we look at it .
SinkingShip's sound analysis of the situtation makes me wonder whether I should be putting the house on the market now to avoid falling foul of a double-whammy loss.
SinkingShip's sound analysis of the situtation makes me wonder whether I should be putting the house on the market now to avoid falling foul of a double-whammy loss.
As Bart Simpson once said "Well, you're damned if you do and you're damned if you don't"
Ours is going on the market before April.
#38
Re: who else can't sell house in Uk and has visa
Been in oz 27 months now
Jazzys
#39
Banned
Joined: Aug 2008
Posts: 22,348
Re: who else can't sell house in Uk and has visa
Thinking of putting it on the market immediately after validation. If it sells and we have to move out before the end of the year maybe I could send the wife and kids as an advance party . It might be a good plan and help ensure that we have at least one income for every step of the way.
#40
Re: who else can't sell house in Uk and has visa
It seems to me that the recent uptick in the UK property market has been confined to London and the South East. I know a couple of local estate agents very well and they tell me a lot of deals over the last year have been from cash buyers (and I'm not talking about bankers). Ordinary people with a bit of money in the bank have been buying houses (rather than flats) for cash - their thinking seems to be that they're earning little interest in the bank and houses always go up.
Where is the UK economy going next? The Bank of England has printed and spent nearly 200 billion - with the admitted intention of maintaining asset (house) prices. The government/BOE has been desperate to avoid a house price crash before the election - hence interest rates at half a percent. Their strategy of making it pointless to keep money in the bank and of printing money to support asset prices has worked. House prices seem to have stabilised. But, all they have done is put off the day of reckoning until after the election.
If, at any point, investors decide UK government debt is risky, they will demand a higher risk premium. In simple terms this means there is the potential at any time for interest rates to be moved upwards sharply. For all of you waiting to leave this dump, this will be great news - in one way - because sterling will recover some of its recent falls against the Australian dollar. The flip side is WHEN (not if) interest rates rise, the UK property market may well crash. When this government's insane spending practices come to an end, the recession will deepen. We've had 10 years of growth between 1997 and 2007 caused by a massive growth in consumer spending fuelled by debt. It led, inevitably, to a credit crunch.
Since then the government has taken over the borrowing. Sooner or later the government will have to stop borrowing. Interest on the debt will become unmanageable if they continue. When the government stop borrowing, the economy will decline again.
All in all, it's not a rosy picture. If I were moving to Australia at the moment, I'd sell up for whatever I could get, keep a chunk of the money in Sterling (it will go back up again) and rent in Australia. House prices in Australia are ludicrous and must fall in time.
Where is the UK economy going next? The Bank of England has printed and spent nearly 200 billion - with the admitted intention of maintaining asset (house) prices. The government/BOE has been desperate to avoid a house price crash before the election - hence interest rates at half a percent. Their strategy of making it pointless to keep money in the bank and of printing money to support asset prices has worked. House prices seem to have stabilised. But, all they have done is put off the day of reckoning until after the election.
If, at any point, investors decide UK government debt is risky, they will demand a higher risk premium. In simple terms this means there is the potential at any time for interest rates to be moved upwards sharply. For all of you waiting to leave this dump, this will be great news - in one way - because sterling will recover some of its recent falls against the Australian dollar. The flip side is WHEN (not if) interest rates rise, the UK property market may well crash. When this government's insane spending practices come to an end, the recession will deepen. We've had 10 years of growth between 1997 and 2007 caused by a massive growth in consumer spending fuelled by debt. It led, inevitably, to a credit crunch.
Since then the government has taken over the borrowing. Sooner or later the government will have to stop borrowing. Interest on the debt will become unmanageable if they continue. When the government stop borrowing, the economy will decline again.
All in all, it's not a rosy picture. If I were moving to Australia at the moment, I'd sell up for whatever I could get, keep a chunk of the money in Sterling (it will go back up again) and rent in Australia. House prices in Australia are ludicrous and must fall in time.
#41
Re: who else can't sell house in Uk and has visa
Ok so I am hoping that:-
- House prices in the South East will climb rapidly from Spring onward.
- We manage to sell ours for a huge profit.
- Sterling rises back to what it should be e.g. £1 = $2.3x.
- House prices in Oz plunge by 20 -30 percent while all the above happens.
- We can buy a MacMansion in Oz for peanuts and have enough left over for a yacht.
#42
Re: who else can't sell house in Uk and has visa
Sound good to me too, ALfresco.
We're basically stuffed as I get a chunk of my horrendously expensive childcare paid by tax credits. So if we sell then we won't recieve any help as our equity will count as savings and I assume likewise when we get to Oz. So we're going to sell (hopefully) and buy in the UK a smaller more sellable/rentable property.
That'll give us smaller mortgage - so we can pay off debt and save a little and ultimately have somewhere that's easier to let out whilst we get settled in Oz. Then we'll sell it when we're ready to buy over there.
Complicated plan I think!!!
btw we're not validating til november so we've got some time.
We're basically stuffed as I get a chunk of my horrendously expensive childcare paid by tax credits. So if we sell then we won't recieve any help as our equity will count as savings and I assume likewise when we get to Oz. So we're going to sell (hopefully) and buy in the UK a smaller more sellable/rentable property.
That'll give us smaller mortgage - so we can pay off debt and save a little and ultimately have somewhere that's easier to let out whilst we get settled in Oz. Then we'll sell it when we're ready to buy over there.
Complicated plan I think!!!
btw we're not validating til november so we've got some time.
Last edited by Lyx; Jan 24th 2010 at 3:41 pm. Reason: spelling!!
#43
Banned
Joined: Aug 2008
Posts: 22,348
Re: who else can't sell house in Uk and has visa
Sound good to me too, ALfresco.
We're basically stuffed as I get a chunk of my horrendously expensive childcare paid by tax credits. So if we sell then we won't recieve any help as our equity will count as savings and I assume likewise when we get to Oz. So we're going to sell (hopefully) and buy in the UK a smaller more sellable/rentable property.
That'll give us smaller mortgage - so we can pay off debt and save a little and ultimately have somewhere that's easier to let out whilst we get settled in Oz. Then we'll sell it when we're ready to buy over there.
Complicated plan I think!!!
btw we're not validating til november so we've got some time.
We're basically stuffed as I get a chunk of my horrendously expensive childcare paid by tax credits. So if we sell then we won't recieve any help as our equity will count as savings and I assume likewise when we get to Oz. So we're going to sell (hopefully) and buy in the UK a smaller more sellable/rentable property.
That'll give us smaller mortgage - so we can pay off debt and save a little and ultimately have somewhere that's easier to let out whilst we get settled in Oz. Then we'll sell it when we're ready to buy over there.
Complicated plan I think!!!
btw we're not validating til november so we've got some time.
#44
Re: who else can't sell house in Uk and has visa
I still havent figured out if you pay tax on exchange rate fluctuations.
e.g. if when you migrate you own a house worth £100,000 or AUD$175,000 then 6 months later the rate is 2/1, you sell for £100,000 which is then worth $200,000 are you liable for tax on the additional $25,000
e.g. if when you migrate you own a house worth £100,000 or AUD$175,000 then 6 months later the rate is 2/1, you sell for £100,000 which is then worth $200,000 are you liable for tax on the additional $25,000
Yes, they look at the value of the property (in Australian dollars) when you emigrate compared to when you sell.
But it's funny how everyone is talking about gains when losses are just as likely if not more, ... if 6 months later you sell the house for GBP90,000 and the exchange rate is 1.50, then your sale revenue is AUD135,000 and you have made a capital loss not a capital gain. In some cases the resulting loss can offset other gains.
#45
BE Enthusiast
Joined: Sep 2008
Location: newbury
Posts: 943
Re: who else can't sell house in Uk and has visa
Not wanting to put any more of a dampner on but for those who've been trying to sell for a year, the value of the £'s you would have cleared 12 months ago had you sold now buys about 20-30% less Australian $'s than at that time.
This applies to me too and dwarfs any drop in price my house may have suffered.
This applies to me too and dwarfs any drop in price my house may have suffered.