surfnturf Posted May 9, 2015 Share Posted May 9, 2015 I'm a Permanent resident, mid 20’s, no dependants and no long term plans to stay here in Oz or head back to UK, currently undecided. For time being I'm not making the most of my savings, which are in an account earning little interest. Considering buying a UK property as an investment to rent out. I’d try to deposit around 25% and mortgage of around 75%, if possible to do so. When it comes to Australian tax I understand I would need to declare any profits for tax due. Would loses/costs be eligible for tax deductions? Is there any UK/Australian tax issues that may arise if I ping and pong between Australia and UK? Or perhaps I should consider alternative investments to UK property? I'd be interested to hear your views, thanks. Link to comment Share on other sites More sharing options...
Bungo Posted May 9, 2015 Share Posted May 9, 2015 On your tax, you actually declare it on both UK and Australian tax returns. Then as it is a UK property, the UK taxman gets first bit of the cherry and if you pay any tax in UK (which you might not because of personal allowance), then this tax is shown as tax credit on the Australian return. Certain costs would be allowable for tax deduction yes, note that this does not mean your mortgage payment, that is not an allowable deduction, only interest charged by the lender is a deduction). As to whether it is worth it or not, I am just not sure anyone can help you out with that as it is personal choice. Yes it might earn more income than a bank account, but it is a lot of hassle as well, or it can be rather. Link to comment Share on other sites More sharing options...
newjez Posted May 9, 2015 Share Posted May 9, 2015 I'm a Permanent resident, mid 20’s, no dependants and no long term plans to stay here in Oz or head back to UK, currently undecided. For time being I'm not making the most of my savings, which are in an account earning little interest. Considering buying a UK property as an investment to rent out. I’d try to deposit around 25% and mortgage of around 75%, if possible to do so. When it comes to Australian tax I understand I would need to declare any profits for tax due. Would loses/costs be eligible for tax deductions? Is there any UK/Australian tax issues that may arise if I ping and pong between Australia and UK? Or perhaps I should consider alternative investments to UK property? I'd be interested to hear your views, thanks. I think you're mad. Renting out a property in another country is a pain. I wouldn't do it without good reason. There are easier ways to make money. Investing in shares is far easier, either going long or short. Link to comment Share on other sites More sharing options...
Chortlepuss Posted May 9, 2015 Share Posted May 9, 2015 Investing in BTL seems a bit risky due to hyper inflated house prices. If you are getting something you want to live in eventually it may be worth it to get on the ladder. Mind you as fuelling rising house prices form a solid part of Conservative party policy you may want to get in now- if you want to do it, I'd do it in Australia where it's easier to manage as it's local and prices (in Brisbane anyway) seem more affordable compared to wage levels. negative gearing rules mean that you can claim any losses against earnings. Or buy a place to live in and rent out rooms....The ATO will hammer you for tax if you move back to the UK though. I rent my UK property out - whilst I'm glad I kept it in a way as I've something to go back to - I'd have been better selling it and having somewhere decent to live here. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted May 10, 2015 Share Posted May 10, 2015 I think you're mad. Renting out a property in another country is a pain. I wouldn't do it without good reason. There are easier ways to make money. Investing in shares is far easier, either going long or short. I second this however I believe it is academic anyway as I would be amazed if you could get a mortgage in the UK when living and working overseas. Link to comment Share on other sites More sharing options...
le petit roi Posted May 10, 2015 Share Posted May 10, 2015 I second this however I believe it is academic anyway as I would be amazed if you could get a mortgage in the UK when living and working overseas. I agree. Even with the bank I've used exclusively for the last 25+ years and approaching them in person last year a) Changing from a 0.1% interest paying current account to a high interest account is proving impossible b) Despite having a 50%+ deposit with an excellent cash flow; getting a mortgage for a UK property has proved so far elusive I'd also be surprised if a UK shares account could be opened - unless you are going to be resident there for any part of a tax year. An online application I made earlier this year was rebuffed as soon as I stated country of residence as Australia. I'm past caring....but it does form one part of my disillusionment with Australia. I'm at an age where, although its not imminent, I need to consider retirement planning and I really don't want to tie-up all my capital and assets in a single country at this stage. I need that flexibility. Link to comment Share on other sites More sharing options...
Parley Posted May 10, 2015 Share Posted May 10, 2015 Most of the big share trading companies have international trading, eg Comsec and Nabtrade. you would have no problem opening an international share trading account and buying UK shares. eg. https://www.nabtrade.com.au/features/products/international-shares/overview Link to comment Share on other sites More sharing options...
le petit roi Posted May 10, 2015 Share Posted May 10, 2015 Most of the big share trading companies have international trading, eg Comsec and Nabtrade.you would have no problem opening an international share trading account and buying UK shares. eg. https://www.nabtrade.com.au/features/products/international-shares/overview Cheers, I'll look at the link later. My concerns are, given I have UK based capital, I want to avoid converting GBP into $AUS, deposit it into an Oz share service account only to have the Aus share service convert it back into GBP to buy the shares. Similarly if I want to sell and have it back in GBP. That meas overall, quadruple transaction costs and an increased exposure to currency fluctuations. Probably academic for me now anyway if I eventually decide, as its looking likely, to go back in the next 2-3 months. Link to comment Share on other sites More sharing options...
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