Moving back after 20 years

[Marisawright]

I have not posted for a while but I am still in Australia but have just put my Apartment up for rent after much indecision so the mortgage is covered

 

Good luck with the move, it sounds like the right thing to do. Just be prepared that your rent might not cover the mortgage as far as you think - if you become non-resident, you'll be treated as a foreign investor, and that means you'll lose your tax-free threshold. That means you get taxed on every penny of the rent.

 

Luckily you can still claim all your expenses including the interest on your mortgage, agent's fees, landlord's insurance etc. Get a valuer to do you a depreciation schedule before you go, so you can also claim depreciation - it can make a big difference

 

http://www.realestate.com.au/blog/property-depreciation-101/

 

The only other thing to bear in mind is Capital Gains Tax. As it's your own home, you wouldn't normally pay CGT when you sell. Once it's rented, you've got (I think) six years before you'll be liable for CGT - but I don't know if that changes if you've become non-resident. Possibly an idea to check with an accountant.

Edited May 25, 2014 by Marisawright

[KTM1963]

I'm sure if you just rent out your own residential property, not an investment, to spend a year or so in the UK, these rules do not apply. I checked out my mortgage and don't have to change mortgage type when I rent out my unit next year although I guess there will be some tax implication. Need to take out landlord insurance though

[normad76]

I say go and enjoy it, i am elderly now and have regrets although i have had quite a few holidays in the UK my dream was always to go back one day to try my luck, too old now, time marching on and holidays are becoming difficult with expensive travel and insurances not to mention the journey, things get more difficult with age, so i say do it now.

[Marisawright]

I'm sure if you just rent out your own residential property, not an investment, to spend a year or so in the UK, these rules do not apply. I checked out my mortgage and don't have to change mortgage type when I rent out my unit next year although I guess there will be some tax implication. Need to take out landlord insurance though

 

You're right, if it's only for a year or two and you can retain your Australian "resident" status, then you pay the same tax BUT you get a tax-free threshold, which makes a huge difference to how much tax you actually pay. However you have to be very careful because if the Australian tax office decides you've no intention of returning, they can classify you as non-resident and slug you for the tax anyway.

[Lostlily]

We have been in Perth in 13 years. Ready to move back now. Loved Perth when we first got here, fantastic place to live UNTIL ........ the prices for just a cup of coffee have rocketed, everything is seriously overpriced. We went out to Leederville a few weeks back with another couple. A night out and a couple of share plates and a taxi home cost us EACH couple $250!! A round of drinks in seriously over priced bars was $50+ one place the cheapest glass of wine was $15. Had enough of being ripped off, ready to head back to the UK. Time to move back to be closer to family and friends, time to pay $10 for two pints of beer and a glass of coke (that was in Leicester Square in London in 2013).

OMG I so agree with what you have said. We came to Perth 15 years ago, now we cannot ever consider going out for a meal or a drink so we are even more lonely and isolated. Am back in the UK on holiday and could afford to eat out every night, if we wished. We feel we have been betrayed by being lured into Australia and now for one reason or another we are pretty much stuck! SO BORING AND LONELY!!!

[Marisawright]

OMG I so agree with what you have said. We came to Perth 15 years ago, now we cannot ever consider going out for a meal or a drink so we are even more lonely and isolated. Am back in the UK on holiday and could afford to eat out every night, if we wished. We feel we have been betrayed by being lured into Australia and now for one reason or another we are pretty much stuck!

Just curious, who "lured" you? When we moved to Australia back in the 80's, the Australian government wasn't trying to lure anyone - in fact, they always had far more people wanting to migrate than they could accept.

 

I know you're in a bad situation, Lily, but don't blame your decision to emigrate on anyone else (except maybe your husband!).

[Frankozuk]

Well I have not posted for a long time, but I have been active. I still had a lot of confusion about what to do so I went over to London for 2 Months - Mid July to Mid September and I had a great time, I really got to get a good feel of London again and I did quite a lot of work there too which really made me feel like I was properly back not just on holiday. Work was fine much the same as here really and the money was much the same too but just a lot more going on which is good for me. Commuting is not so much fun, the Tube in rush hour is hideous but you get used to it. I had forgotten how big London is and how many flavours it has depending on what part of town you are in. There really is something for everyone. I did not find it much cheaper than here, clothes yes but eating out and supermarkets maybe a bit cheaper. I think accommodation is actually more expensive than Sydney - space is certainly at a premium. London has a particular energy that I really enjoyed. I really noticed how much more crowded it is too.

So after 2 months I came back to Sydney and its been OK, the coffee is good the weather is nice but it all feels a bit flat to me, there is nothing wrong with Sydney its a great place but I think I am not finished with the UK yet.

I work freelance and I am single with no children so it is easy for me to move around, I have made a decision to go back for a year.

I have rented my apartment out furnished and that will cover my costs here. I have put my personal stuff into storage and I am going with a very full suitcase for a year with an open mind. I am lucky enough to have free accommodation with family when I first arrive until I get sorted.

I am leaving on friday and I am nervous because its a big change and I second guess myself all the time, but the flat is rented the ticket is bought the suitcase is packed and I don’t actually have anywhere to live here at the moment, so I am off to London finally after a good 10 years of will I won’t I ?

I will report back in a few months when I have some experience to share. More will be reavealed.

[fizzybangs]

You will have a ball I'm sure. Haven't read all the posts but hope your Mum is okay? Enjoy your new home

[the bottler]

I look forward to your report ... as you say you are single , no children and work freelance ... could not be better ... enjoy your time and I hope your Mum is well ...

[Katie22]

Have a safe trip and wish you the best of luck. I've got a feeling you'll be fine! Pointless exercise in life worrying about what might happen and far more pleasant to dream about what could happen instead. If the pressure of it being a permanent move is taken away then you just go with the flow, if you like it you stay, if you miss Sydney, you eventually go back -with the added bonus of memories of quality time spent with your family - nothing lost and no regrets when you're old and grey. Looking forward to hearing your next instalment!

[Aunt Agatha]

Safe journey and good luck on your new adventure! Looking forward to an update.

[flag of convenience]

OMG I so agree with what you have said. We came to Perth 15 years ago, now we cannot ever consider going out for a meal or a drink so we are even more lonely and isolated. Am back in the UK on holiday and could afford to eat out every night, if we wished. We feel we have been betrayed by being lured into Australia and now for one reason or another we are pretty much stuck! SO BORING AND LONELY!!!

 

Indeed the costs have escalated over the time frame given, but betrayed don't quite get. Do you mean you fell for the glam and glamour portrayed overseas in the spin to entice people to Australia?

[Gbye grey sky]

Well I have not posted for a long time, but I have been active. I still had a lot of confusion about what to do so I went over to London for 2 Months - Mid July to Mid September and I had a great time, I really got to get a good feel of London again and I did quite a lot of work there too which really made me feel like I was properly back not just on holiday. Work was fine much the same as here really and the money was much the same too but just a lot more going on which is good for me. Commuting is not so much fun, the Tube in rush hour is hideous but you get used to it. I had forgotten how big London is and how many flavours it has depending on what part of town you are in. There really is something for everyone. I did not find it much cheaper than here, clothes yes but eating out and supermarkets maybe a bit cheaper. I think accommodation is actually more expensive than Sydney - space is certainly at a premium. London has a particular energy that I really enjoyed. I really noticed how much more crowded it is too.

So after 2 months I came back to Sydney and its been OK, the coffee is good the weather is nice but it all feels a bit flat to me, there is nothing wrong with Sydney its a great place but I think I am not finished with the UK yet.

I work freelance and I am single with no children so it is easy for me to move around, I have made a decision to go back for a year.

I have rented my apartment out furnished and that will cover my costs here. I have put my personal stuff into storage and I am going with a very full suitcase for a year with an open mind. I am lucky enough to have free accommodation with family when I first arrive until I get sorted.

I am leaving on friday and I am nervous because its a big change and I second guess myself all the time, but the flat is rented the ticket is bought the suitcase is packed and I don’t actually have anywhere to live here at the moment, so I am off to London finally after a good 10 years of will I won’t I ?

I will report back in a few months when I have some experience to share. More will be reavealed.

 

You sum up London well. It is a buzzing place but very crowded. I am 54 but most of the time feel like a geriatric there as most people you see around you are so much younger. You can feed off the energy there though to some extent. Not sure why you keep having doubts though. I reckon you will have an amazing time and may even conclude that a year is not long enough. Good luck.

[miw54]

Well I have not posted for a long time, but I have been active. I still had a lot of confusion about what to do so I went over to London for 2 Months - Mid July to Mid September and I had a great time, I really got to get a good feel of London again and I did quite a lot of work there too which really made me feel like I was properly back not just on holiday. Work was fine much the same as here really and the money was much the same too but just a lot more going on which is good for me. Commuting is not so much fun, the Tube in rush hour is hideous but you get used to it. I had forgotten how big London is and how many flavours it has depending on what part of town you are in. There really is something for everyone. I did not find it much cheaper than here, clothes yes but eating out and supermarkets maybe a bit cheaper. I think accommodation is actually more expensive than Sydney - space is certainly at a premium. London has a particular energy that I really enjoyed. I really noticed how much more crowded it is too.

So after 2 months I came back to Sydney and its been OK, the coffee is good the weather is nice but it all feels a bit flat to me, there is nothing wrong with Sydney its a great place but I think I am not finished with the UK yet.

I work freelance and I am single with no children so it is easy for me to move around, I have made a decision to go back for a year.

I have rented my apartment out furnished and that will cover my costs here. I have put my personal stuff into storage and I am going with a very full suitcase for a year with an open mind. I am lucky enough to have free accommodation with family when I first arrive until I get sorted.

I am leaving on friday and I am nervous because its a big change and I second guess myself all the time, but the flat is rented the ticket is bought the suitcase is packed and I don’t actually have anywhere to live here at the moment, so I am off to London finally after a good 10 years of will I won’t I ?

I will report back in a few months when I have some experience to share. More will be reavealed.

 

I think you are well on your way to being a ping pong pom. Both places are great and when you are in one you will miss the other. Its the life I lead but it is always a great feeling going back and forwards. Just make sure you always keep hold of property and enjoy !:smile:

[Frankozuk]

A few observations from my time back in UK. Well its a year later and I have been living in London for 12 months now. Many things have happened. I was worried about work and I got some, not better work than I got in Sydney - much the same really and about the same money. Off the top of my head things that I really notice here, Its too crowded, there is no space here and everybody wants some. The food is dreadful and expensive and for the coffee lovers - prepare for disappointment. The Indian food is great, the humour is fabulous and the Englishness is excellent if thats what you crave.

If you have been living in Australia for a long time which I had been 20 years - My standard of living is much the same but its just different. I thought accommodation to buy and rent in Sydney was crazy well its much worse here, space is at a premium and be prepared to pay a lot for it - I reckon 10 to up to 20% more than Sydney. I have travelled to Europe a couple of times but you don't go too much cause you need to work to be able to keep your head above water in London. Summer is great, Winter is hideous and it lasts and lasts. A 3 zone weekly Oyster card is £37.80 thats about $80 a week just to move around. I personally came back because I had an itch that needed to be scratched and plus I had an ageing mother who I wanted to spend time with while I could. Well for me coming back despite the cost the crowds the bad food and accommodation issues, London is still one of the best cities in the world, it is eclectic, interesting, fun, ever changing and engaging - there is only one London and it is a wonderful adventure being here. My mother passed recently and I will be eternally grateful that I was here for the last year and I have no unfinished business or guilt for not being here. For me coming back was one of the best decisions I ever made, but that chapter of my life is over now and I will return to Sydney and back to my Australian life which I have always loved. Don’t underestimate coming back, it is a big deal and there is lot of change to deal with, its hard and it can be lonely too but if you want to come back for a while or permanently, do it, but remove the rose coloured glasses first. An old friend of mine once said if you don't do anything - nothing happens, he also said you can go back but you can't return. I think both are true. I’m glad I got off the fence and to the airport but I am happy to leave again too.

[Jacaranda]

Sorry to hear of your Mum passing away.Atleast now though you have clarity and you cant put a price on that!Best wishes and good luck for the happy future.

[deryans]

Just curious, who "lured" you? When we moved to Australia back in the 80's, the Australian government wasn't trying to lure anyone - in fact, they always had far more people wanting to migrate than they could accept.

 

I know you're in a bad situation, Lily, but don't blame your decision to emigrate on anyone else (except maybe your husband!).

 

I disagree, South Australia as a strategy to attract people has dropped and been in the process of dropping eligibility criteria for the 190visa since 2012, thus making it more attractive to emigrate to South Australia, whilst spruiking how lovely the place is to live ?

 

What they did not inform these applicants was that SA was a basket case economically, and whilst the first casualties will be the degree level skilled, it won't take long for trades and finally unskilled to follow, infact we are already seeing a significant drop off in available work for Plumbers, Chippies and brickies.

 

Why emigrate to work in Woolies ? Not what I had in mind for my family.

[Marisawright]

Well its a year later and I have been living in London for 12 months now.... The food is dreadful and expensive and for the coffee lovers - prepare for disappointment...

 

I thought accommodation to buy and rent in Sydney was crazy well its much worse here...- I reckon 10 to up to 20% more than Sydney. I have travelled to Europe a couple of times but you don't go too much cause you need to work to be able to keep your head above water in London.

 

...Well for me coming back despite the cost the crowds the bad food and accommodation issues, London is still one of the best cities in the world, it is eclectic, interesting, fun, ever changing and engaging - there is only one London and it is a wonderful adventure being here.

 

I'm so interested to hear you say that. Moving to the South of England from Sydney, I've found the same as far as eating out, coffee etc., and was amazed to find that renting a nice property, even some distance from London, is almost as expensive as Sydney.

 

I do think I'd be much happier in London, because I agree with everything you say about it - but as you say, rentals are even higher, and as we're semi-retired it simply wouldn't be practical to settle there. I'm glad you were able to enjoy it. I'm sorry to hear about your mum, but the main thing is that you were there for her when it mattered. Good luck in Sydney!

Edited November 22, 2015 by Marisawright

[Tina2]

Thank you for posting such an honest and level headed review of how you found London. I have that "itch" so started to look at the cost of rentals not London but down south in the country and was shocked by the cost of renting in the UK. It removed that last "is there any way we can get back" so now I must continue with life here, and maybe it will make accepting the fact easier.

[ramot]

Have to agree with Marisa.

I was less than impressed with the quality of meals when back in UK the poor quality meals definitely out weighed the very occasional adequate to good.

 

We travelled over 3000 miles during our visit and we were very disappointed, and we ate in lots of pubs all over the country. Best not get me started about the coffee again either.

 

So best to agree to disagree as no one can agree on what constitutes a good quality meal.

 

Just to clarify I am not knocking UK,

 

To make posters feel better we had a couple of pretty lousy meals out last week here on the Sunshine Coast, but that is unusual.

[bristolman]

Have to agree with Marisa.

I was less than impressed with the quality of meals when back in UK the poor quality meals definitely out weighed the very occasional adequate to good.

 

We travelled over 3000 miles during our visit and we were very disappointed, and we ate in lots of pubs all over the country. Best not get me started about the coffee again either.

 

So best to agree to disagree as no one can agree on what constitutes a good quality meal.

 

Just to clarify I am not knocking UK,

 

To make posters feel better we had a couple of pretty lousy meals out last week here on the Sunshine Coast, but that is unusual.

 

That's fair enough, there will always be people who are on different sides of the fence. We have been extremely impressed with the quality of food here and have had meals all around the country. I most definitely know what constitutes a good quality meal, I'm fortunate enough to be married to a cook so I'm spoiled in that sense.

Now in Queensland we found pub food to be at best adequate and when good it was overpriced.

[Marisawright]

Now in Queensland we found pub food to be at best adequate and when good it was overpriced.

 

I would have to say that, in Queensland, I've found the same. But my experience of Queensland pubs is fairly limited. The ones I have visited were noticeably more expensive than their Sydney equivalents. There is a very strong "cheap eats" culture in Sydney and Melbourne but I haven't found it to exist in other parts of Australia that I've visited. Even Hobart's pubs were quite pricey, though the servings were enormous!

[bristolman]

I would have to say that, in Queensland, I've found the same. But my experience of Queensland pubs is fairly limited. The ones I have visited were noticeably more expensive than their Sydney equivalents. There is a very strong "cheap eats" culture in Sydney and Melbourne but I haven't found it to exist in other parts of Australia that I've visited. Even Hobart's pubs were quite pricey, though the servings were enormous!

 

My nephew took us to a pub in Ge long when we visited, I say pub but bar really. We left totally underwhelmed but he thought it was the best place ever. He has since been to England with my brother and seen the error of his ways

[fish.01]

I would have to say that, in Queensland, I've found the same. But my experience of Queensland pubs is fairly limited. The ones I have visited were noticeably more expensive than their Sydney equivalents. There is a very strong "cheap eats" culture in Sydney and Melbourne but I haven't found it to exist in other parts of Australia that I've visited. Even Hobart's pubs were quite pricey, though the servings were enormous!

 

In Brisbane I generally wouldn't go to a pub for good food with some exceptions. Cafes/restaurants are a lot better option imo.

[Marisawright]

In Brisbane I generally wouldn't go to a pub for good food with some exceptions. Cafes/restaurants are a lot better option imo.

 

That's probably why I haven't been in many Queensland pubs! Having checked out the prices at a few gastropubs, I found restaurants better value and didn't look back!