Here's my problem...
We have sold our house (should sign contracts next week) and thought it would be a grand idea to buy another home here outright so no mortgage, and get a rental income.
We've not got PR in Oz and are on a state sponsored so after 2 years we can apply for PR.
I wasn't really aware of all the taxes we'd end up paying and have suddenly realised we'll be liable for capital gains tax, and other taxes.
We intended on moving straight to Oz once the house went through and renting the UK house straight out. Now I look at it and am wondering if we should move into the new house for a short period of time before renting it out to avoid hefty CGT bills???
I'm so so so confused. Not sure how long we'd have to live in the new house though before renting it out?
It would now be deemed as a buy to let, so tax big time! What tax would we pay in Oz too?
I feel like we've made a huge mistake and will be out of pocket.
Anyone got any suggestions? Frankly I'm ready to pull out of the purchase today and find other ways to invest our life savings!
Cheers in advance for any answers in laymans terms as I'm not feeling too clever right now!