Investor Retirement Visa
May 1st 2007, 11:56 pm
#1
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Joined: Apr 2007
Posts: 8
Investor Retirement Visa
Interested to hear from anyone with experience of applying for this type of visa and of the pitfalls. Also would like any tips with regard to the government bond.
May 4th 2007, 5:07 am
#2
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Joined: Mar 2007
Posts: 86
Re: Investor Retirement Visa
My parents are in the process of applying (Queensland). There aren't a huge number of 405 holders yet from what we can ascertain. What are your specific questions? If they are the same as ones we've already had answered - I'll be happy to give it a go!
May 4th 2007, 2:01 pm
#3
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Joined: Apr 2007
Posts: 54
Re: Investor Retirement Visa
My parents are in a similar positon, and are about to lodge an application for Melbourne. As the other respondee says there aren't many of us - so if you could keep us posted through this site of your progress once you get going it would be of interest to us all. We similarly are going to do the same.
The only progress I have to report so far is that the application to Victoria Government to sponsor my parents as investors was sent to their offices a fortnight ago, and they normally suggest 30 days to turn it round. When this is received the visa application is all ready to go in. They have organised their health insurance with BUPA Australia who will cover their pre existing conditions because they are with BUPA in the UK. They have had their medicals and ordered their police checks, so from my viewpoint we have done all we can until we next hear.
Once again to any other investor retiree visa applicants or those who have been succesful, please could you share your stories and give any advice you think would be helpful.
HJG
The only progress I have to report so far is that the application to Victoria Government to sponsor my parents as investors was sent to their offices a fortnight ago, and they normally suggest 30 days to turn it round. When this is received the visa application is all ready to go in. They have organised their health insurance with BUPA Australia who will cover their pre existing conditions because they are with BUPA in the UK. They have had their medicals and ordered their police checks, so from my viewpoint we have done all we can until we next hear.
Once again to any other investor retiree visa applicants or those who have been succesful, please could you share your stories and give any advice you think would be helpful.
HJG
May 4th 2007, 6:25 pm
#4
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Joined: Apr 2007
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Re: Investor Retirement Visa
a) As I do not reach 60 until June next year and cannot access my company pension until then, I appear to have time to make the application but is this the case, i.e. how long does the system take?
b) I will have a slight shortfall on my company pension in relation to the £20,000 income required but I understand that the interest from the government bond is taken into consideration. Can this be confirmed and how do the government determine the amount of interest at that point?
c) When is the bond taken out? On arrival or before?
d) What happens to my UK state pension when I reach 65? That's making the assumption that we will remain in Australia but we are so taken with the country that our returning to the UK is highly unlikely!
e) Are you using a migration agent and, if so, can you recommend them?
f) We too are looking at Queensland having fallen in love with the Noosa area but property is a little more expensive. Do you have any knowledge of another coastal area, local to Noosa, that we might investigate?
May 4th 2007, 6:33 pm
#5
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Joined: Apr 2007
Posts: 8
Re: Investor Retirement Visa
My parents are in a similar positon, and are about to lodge an application for Melbourne. As the other respondee says there aren't many of us - so if you could keep us posted through this site of your progress once you get going it would be of interest to us all. We similarly are going to do the same.
The only progress I have to report so far is that the application to Victoria Government to sponsor my parents as investors was sent to their offices a fortnight ago, and they normally suggest 30 days to turn it round. When this is received the visa application is all ready to go in. They have organised their health insurance with BUPA Australia who will cover their pre existing conditions because they are with BUPA in the UK. They have had their medicals and ordered their police checks, so from my viewpoint we have done all we can until we next hear.
Once again to any other investor retiree visa applicants or those who have been succesful, please could you share your stories and give any advice you think would be helpful.
HJG
The only progress I have to report so far is that the application to Victoria Government to sponsor my parents as investors was sent to their offices a fortnight ago, and they normally suggest 30 days to turn it round. When this is received the visa application is all ready to go in. They have organised their health insurance with BUPA Australia who will cover their pre existing conditions because they are with BUPA in the UK. They have had their medicals and ordered their police checks, so from my viewpoint we have done all we can until we next hear.
Once again to any other investor retiree visa applicants or those who have been succesful, please could you share your stories and give any advice you think would be helpful.
HJG
I will keep posting my progress although, for me, it is early days.
May 4th 2007, 8:28 pm
#6
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Joined: Mar 2007
Posts: 86
Re: Investor Retirement Visa
My parents have sent their application off to Queensland and are awaiting the sponsorship form to return, and as soon as it does, the main application will go into Perth. Our family (me, husband and 4 year old) are off too, on a different visa. We plan to go towards the end of the year if everything goes to plan.
They are looking at either a BUPA transfer or Medibank cover for health insurance (thanks HJG for your tip on that I followed it up and it does seem a good idea). My mother and I are off to Melbourne and Noosa this week actually, as my parents have only spent a day in Australia (one a cruise!).
We've been getting lots of advice from some good people over here including Prism Expat on inheritance tax and transfer of pensions, Jeff Bomwan who's an international tax consultant on how to best organise our finances - as we also have business issues of course.
It's all pretty complicated and stressful to be honest, I just keep telling myself it'll all be worth it.
re your specific questions:
The visa doesn't stipulate anything about being in receipt of a pension. As long as you are over 55 you can apply. It's the financial thresholds you have to meet, whether the source is your pension or from anywhere else
Bond is taken out just before you get your visa, when they ask for you to make your investment you know your visa is about to be approved. But I understand they give you time if necessary to get the cash together (i.e. you may have to sell your house).
You can use your expected interest from your investment as part of your income stream (Queensland currently paying around 6.22% on that bond).
You'll get your state pension when you reach 65, but at present it will remain frozen at that point, so you won't get any inflation increases that apply to UK based pensioners.
We're using Concept Australia. Can't recommend them yet as we're still having our visas processed, but happy to let you know once it's all done. So far they seem fine.
We're also off to Noosa - as we fell in love too! You're right though it is pricey. But all along that coast is pretty desirable.
Do stay in touch
Kegsta
They are looking at either a BUPA transfer or Medibank cover for health insurance (thanks HJG for your tip on that I followed it up and it does seem a good idea). My mother and I are off to Melbourne and Noosa this week actually, as my parents have only spent a day in Australia (one a cruise!).
We've been getting lots of advice from some good people over here including Prism Expat on inheritance tax and transfer of pensions, Jeff Bomwan who's an international tax consultant on how to best organise our finances - as we also have business issues of course.
It's all pretty complicated and stressful to be honest, I just keep telling myself it'll all be worth it.
re your specific questions:
The visa doesn't stipulate anything about being in receipt of a pension. As long as you are over 55 you can apply. It's the financial thresholds you have to meet, whether the source is your pension or from anywhere else
Bond is taken out just before you get your visa, when they ask for you to make your investment you know your visa is about to be approved. But I understand they give you time if necessary to get the cash together (i.e. you may have to sell your house).
You can use your expected interest from your investment as part of your income stream (Queensland currently paying around 6.22% on that bond).
You'll get your state pension when you reach 65, but at present it will remain frozen at that point, so you won't get any inflation increases that apply to UK based pensioners.
We're using Concept Australia. Can't recommend them yet as we're still having our visas processed, but happy to let you know once it's all done. So far they seem fine.
We're also off to Noosa - as we fell in love too! You're right though it is pricey. But all along that coast is pretty desirable.
Do stay in touch
Kegsta
May 5th 2007, 7:19 am
#7
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Joined: Apr 2007
Posts: 8
Re: Investor Retirement Visa
Thank you for you very useful response. I will look into the transfer of pensions and seek the advice of Prism Xpat.
I do appear to have time on my side at the moment but I'm sure that there are people out there who will advise me otherwise!
I do appear to have time on my side at the moment but I'm sure that there are people out there who will advise me otherwise!
My parents have sent their application off to Queensland and are awaiting the sponsorship form to return, and as soon as it does, the main application will go into Perth. Our family (me, husband and 4 year old) are off too, on a different visa. We plan to go towards the end of the year if everything goes to plan.
They are looking at either a BUPA transfer or Medibank cover for health insurance (thanks HJG for your tip on that I followed it up and it does seem a good idea). My mother and I are off to Melbourne and Noosa this week actually, as my parents have only spent a day in Australia (one a cruise!).
We've been getting lots of advice from some good people over here including Prism Expat on inheritance tax and transfer of pensions, Jeff Bomwan who's an international tax consultant on how to best organise our finances - as we also have business issues of course.
It's all pretty complicated and stressful to be honest, I just keep telling myself it'll all be worth it.
re your specific questions:
The visa doesn't stipulate anything about being in receipt of a pension. As long as you are over 55 you can apply. It's the financial thresholds you have to meet, whether the source is your pension or from anywhere else
Bond is taken out just before you get your visa, when they ask for you to make your investment you know your visa is about to be approved. But I understand they give you time if necessary to get the cash together (i.e. you may have to sell your house).
You can use your expected interest from your investment as part of your income stream (Queensland currently paying around 6.22% on that bond).
You'll get your state pension when you reach 65, but at present it will remain frozen at that point, so you won't get any inflation increases that apply to UK based pensioners.
We're using Concept Australia. Can't recommend them yet as we're still having our visas processed, but happy to let you know once it's all done. So far they seem fine.
We're also off to Noosa - as we fell in love too! You're right though it is pricey. But all along that coast is pretty desirable.
Do stay in touch
Kegsta
They are looking at either a BUPA transfer or Medibank cover for health insurance (thanks HJG for your tip on that I followed it up and it does seem a good idea). My mother and I are off to Melbourne and Noosa this week actually, as my parents have only spent a day in Australia (one a cruise!).
We've been getting lots of advice from some good people over here including Prism Expat on inheritance tax and transfer of pensions, Jeff Bomwan who's an international tax consultant on how to best organise our finances - as we also have business issues of course.
It's all pretty complicated and stressful to be honest, I just keep telling myself it'll all be worth it.
re your specific questions:
The visa doesn't stipulate anything about being in receipt of a pension. As long as you are over 55 you can apply. It's the financial thresholds you have to meet, whether the source is your pension or from anywhere else
Bond is taken out just before you get your visa, when they ask for you to make your investment you know your visa is about to be approved. But I understand they give you time if necessary to get the cash together (i.e. you may have to sell your house).
You can use your expected interest from your investment as part of your income stream (Queensland currently paying around 6.22% on that bond).
You'll get your state pension when you reach 65, but at present it will remain frozen at that point, so you won't get any inflation increases that apply to UK based pensioners.
We're using Concept Australia. Can't recommend them yet as we're still having our visas processed, but happy to let you know once it's all done. So far they seem fine.
We're also off to Noosa - as we fell in love too! You're right though it is pricey. But all along that coast is pretty desirable.
Do stay in touch
Kegsta
May 5th 2007, 7:51 am
#8
Forum Regular
Joined: Apr 2007
Posts: 54
Re: Investor Retirement Visa
It's good to know other's are going throught the same process we are.
My family all got visa stickers just before Easter, and we are waiting to confirm my parents can get their visa through before we go permanently. Its difficult not knowing whether we are talking about weeks or months? We have a visit due at the end of June to validate our visas and to start house hunting and school hunting - I would love to be going to Queensland, but my other half likes the cold!!!!!So its Melbourne for us which is where my sister lives.
One thing you may be able to help me with is this - our long term strategy is for my sister who has been in Oz for 12 months to apply for a contib parents visa for them when she is eligible next year. Assuming this takes a year to come trhough they would not need their investor visa in two years time - does anyone know if the bond can be repaid at this time, or if we need to wait until it matures - not a key issue as the investment is one which my parent's are comfortable with.
Just one other question if you don't mind, has anyone worked out whether a move to Australia will mean that the inheritance tax in the UK is no longer paid?
HJG
My family all got visa stickers just before Easter, and we are waiting to confirm my parents can get their visa through before we go permanently. Its difficult not knowing whether we are talking about weeks or months? We have a visit due at the end of June to validate our visas and to start house hunting and school hunting - I would love to be going to Queensland, but my other half likes the cold!!!!!So its Melbourne for us which is where my sister lives.
One thing you may be able to help me with is this - our long term strategy is for my sister who has been in Oz for 12 months to apply for a contib parents visa for them when she is eligible next year. Assuming this takes a year to come trhough they would not need their investor visa in two years time - does anyone know if the bond can be repaid at this time, or if we need to wait until it matures - not a key issue as the investment is one which my parent's are comfortable with.
Just one other question if you don't mind, has anyone worked out whether a move to Australia will mean that the inheritance tax in the UK is no longer paid?
HJG
May 5th 2007, 8:20 am
#9
Forum Regular
Joined: Mar 2007
Posts: 86
Re: Investor Retirement Visa
Hi HJG
I believe you can relinquish the bond mid-term, but will not necessarily receive back the full amount invested. I'd suggest getting professional advice on this. Same goes for inheritance tax, and Prism Expat or Jeff Bowman who we are using can both advise on this. One thing though that your parents may want to consider: there are some fairly considerable tax advantages to being a temporary resident (due to legislation enacted in July last year), and those advantages will disappear once they become permanent. Depending on the level of their investments overseas, they may even be better off staying on a 405! I'd definitely recommend you look into that aspect further.
I wouldn't call Melbourne cold by the way! Only for a few months of the year - most of the rest it can be pretty scorching (it hit 40 when we were there in January). But understand that humid Queensland not for everyone.
I'll let you know when my parents sponsorship comes through. We aren't as ahead as you on ours though, only submitting this week. Hope to get it all through by Sept/Oct though. Out of interest, which BUPA insurance are your parents opting for - the basic one looked a bit too basic to me!
Do stay in touch. And good luck Ron, never too early to plan ahad
Kegsta
I believe you can relinquish the bond mid-term, but will not necessarily receive back the full amount invested. I'd suggest getting professional advice on this. Same goes for inheritance tax, and Prism Expat or Jeff Bowman who we are using can both advise on this. One thing though that your parents may want to consider: there are some fairly considerable tax advantages to being a temporary resident (due to legislation enacted in July last year), and those advantages will disappear once they become permanent. Depending on the level of their investments overseas, they may even be better off staying on a 405! I'd definitely recommend you look into that aspect further.
I wouldn't call Melbourne cold by the way! Only for a few months of the year - most of the rest it can be pretty scorching (it hit 40 when we were there in January). But understand that humid Queensland not for everyone.
I'll let you know when my parents sponsorship comes through. We aren't as ahead as you on ours though, only submitting this week. Hope to get it all through by Sept/Oct though. Out of interest, which BUPA insurance are your parents opting for - the basic one looked a bit too basic to me!
Do stay in touch. And good luck Ron, never too early to plan ahad
Kegsta
May 5th 2007, 9:45 am
#10
Forum Regular
Joined: Apr 2007
Posts: 54
Re: Investor Retirement Visa
Hi - to be honest my mum is so paranoid when it comes to health that she will definitely go for the top cover of those offered whatever it might be!
They had reconciled themselves with English health costs, and the Australian ones appear much lower because under Australias rules they pool the risk rather than allocate it to individuals as happens in the UK.
Thanks for the advice about checking out the tax postion with the experts.
How about if we post again on the other May bank holiday with a progress report?
HJG
Hi Ron - I think you are doing the right thing in planning ahead - the general advice seems to be to do everything as early as possible. Besides we will all be old hands by then and be able to help you along.
HJG
They had reconciled themselves with English health costs, and the Australian ones appear much lower because under Australias rules they pool the risk rather than allocate it to individuals as happens in the UK.
Thanks for the advice about checking out the tax postion with the experts.
How about if we post again on the other May bank holiday with a progress report?
HJG
Hi Ron - I think you are doing the right thing in planning ahead - the general advice seems to be to do everything as early as possible. Besides we will all be old hands by then and be able to help you along.
HJG
May 5th 2007, 12:45 pm
#11
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Investor Retirement Visa
I have a factsheet I can send to anyone who is interested about the taxation of "temporary tax residents" in Australia from 1st July 2006 if anyone reading this thread is interested - send me an email if so.
Best regards.
Best regards.
May 6th 2007, 7:38 am
#12
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Joined: Apr 2007
Posts: 8
Re: Investor Retirement Visa
Having read and re-read the conditions of the visa, can I ask a simple question about a point that is still not clear to me?
I appreciate that I will need $500,000 to purchase the government bond but, apart from prove of annual income and the medical insurance, do I also need to be able to show that I have a further $500,000 available at the time of application in order to obtain the visa?
I realise now that this could be a crucial issue in my pursuing an application!
Help!! Is my dream to be shattered?!!
I appreciate that I will need $500,000 to purchase the government bond but, apart from prove of annual income and the medical insurance, do I also need to be able to show that I have a further $500,000 available at the time of application in order to obtain the visa?
I realise now that this could be a crucial issue in my pursuing an application!
Help!! Is my dream to be shattered?!!
Hi - to be honest my mum is so paranoid when it comes to health that she will definitely go for the top cover of those offered whatever it might be!
They had reconciled themselves with English health costs, and the Australian ones appear much lower because under Australias rules they pool the risk rather than allocate it to individuals as happens in the UK.
Thanks for the advice about checking out the tax postion with the experts.
How about if we post again on the other May bank holiday with a progress report?
HJG
Hi Ron - I think you are doing the right thing in planning ahead - the general advice seems to be to do everything as early as possible. Besides we will all be old hands by then and be able to help you along.
HJG
They had reconciled themselves with English health costs, and the Australian ones appear much lower because under Australias rules they pool the risk rather than allocate it to individuals as happens in the UK.
Thanks for the advice about checking out the tax postion with the experts.
How about if we post again on the other May bank holiday with a progress report?
HJG
Hi Ron - I think you are doing the right thing in planning ahead - the general advice seems to be to do everything as early as possible. Besides we will all be old hands by then and be able to help you along.
HJG
May 6th 2007, 8:14 am
#13
Forum Regular
Joined: Apr 2007
Posts: 54
Re: Investor Retirement Visa
Hi Ron,
The short answer to this is yes - you would actually need assets of 1 million australian dollars equivalent to £400K in order to qualify for an investor visa.
Of this half of it would be required for the bond, and the other half would be available for you to buy a house or whatever in Australia. (You do not have to buy a house immediately or anything)
The assets you have would would count include your house in the UK, and any pension lump sums etc, premium bonds, life insurance, ISAs, cars, etc. They would also include the assets of anyone applying for the visa with you if that is relevant.
Hope this helps
HJG
The short answer to this is yes - you would actually need assets of 1 million australian dollars equivalent to £400K in order to qualify for an investor visa.
Of this half of it would be required for the bond, and the other half would be available for you to buy a house or whatever in Australia. (You do not have to buy a house immediately or anything)
The assets you have would would count include your house in the UK, and any pension lump sums etc, premium bonds, life insurance, ISAs, cars, etc. They would also include the assets of anyone applying for the visa with you if that is relevant.
Hope this helps
HJG
May 7th 2007, 7:29 pm
#14
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Joined: Apr 2007
Posts: 8
Re: Investor Retirement Visa
Thanks for your response HJG, sadly not the one I wanted to hear but one I feared was the case. I will have to look at all my other assets, apart from my house, and see if I can cover the shortfall.
Do you know if they require you to show outstanding debts, i.e. mortgage, credit cards etc? And what do you mean by life insurance? The amount I and my wife are insured for? This could make a big difference.
Ron
Do you know if they require you to show outstanding debts, i.e. mortgage, credit cards etc? And what do you mean by life insurance? The amount I and my wife are insured for? This could make a big difference.
Ron
Hi Ron,
The short answer to this is yes - you would actually need assets of 1 million australian dollars equivalent to £400K in order to qualify for an investor visa.
Of this half of it would be required for the bond, and the other half would be available for you to buy a house or whatever in Australia. (You do not have to buy a house immediately or anything)
The assets you have would would count include your house in the UK, and any pension lump sums etc, premium bonds, life insurance, ISAs, cars, etc. They would also include the assets of anyone applying for the visa with you if that is relevant.
Hope this helps
HJG
The short answer to this is yes - you would actually need assets of 1 million australian dollars equivalent to £400K in order to qualify for an investor visa.
Of this half of it would be required for the bond, and the other half would be available for you to buy a house or whatever in Australia. (You do not have to buy a house immediately or anything)
The assets you have would would count include your house in the UK, and any pension lump sums etc, premium bonds, life insurance, ISAs, cars, etc. They would also include the assets of anyone applying for the visa with you if that is relevant.
Hope this helps
HJG
May 7th 2007, 9:11 pm
#15
Forum Regular
Joined: Apr 2007
Posts: 54
Re: Investor Retirement Visa
Hi Ron,
I'm sorry the situation is as it is - the info is very confusing and I thought the same as you about the $500K at first. By life insurance I meant where you have an endowment policy which has some value now even if it matures in the future. Just one thought, it might be worth getting an up to date valuation on your house - my parent was worth more than they thought and this made a difference.
Thanks
HJG
I'm sorry the situation is as it is - the info is very confusing and I thought the same as you about the $500K at first. By life insurance I meant where you have an endowment policy which has some value now even if it matures in the future. Just one thought, it might be worth getting an up to date valuation on your house - my parent was worth more than they thought and this made a difference.
Thanks
HJG
