Moving back after 11 years - property advice

[hebs81]

So I've begun the process of moving back home (Isle of Man) after 11 years in Australia. I've mostly enjoyed my time here, traveled a fair bit, lived in different places but nothing quite feels like home, I even moved to the Snowy Mountains in NSW to get the snow!

I miss the closeness of everything in the UK, miss my family (I have none here), I miss greenery and deciduous trees (this is a weird one I know)

I'll hopefully have citizenship this year, been through the test just awaiting approval and ceremony, so I know I can come back if I want. My partner is Australian and is getting quite stressed about the whole thing, he's only ever moved once and that was only 500kms. I'm trying to reassure him that it will all work out but it's difficult.

We have just purchased an investment property here and as we won't be here we can't reap the benefits of depreciation on it, not unless we come back, this is stressing him big time.

Has anyone else got and intend on keeping property here when they move back, or have moved back? I know the tax system is different on the IOM but is there any way of claiming losses on an overseas property? It is fully mortgaged so it won't be giving us any income for quite some time, if ever, it's only for long term gain.

So so much to think about 

[Marisawright]

The problem is that you will pay double the capital gains tax because you’re an overseas investor, so that’s going to wipe out a big chunk of your long term growth.

[hebs81]

7 minutes ago, Marisawright said:

The problem is that you will pay double the capital gains tax because you’re an overseas investor, so that’s going to wipe out a big chunk of your long term growth.

The investment property won't be sold for at least 10 years (all being well) and also the IOM does't have capital gains tax so hoping to avoid that one

[Marisawright]

2 hours ago, hebs81 said:

The investment property won't be sold for at least 10 years (all being well) and also the IOM does't have capital gains tax so hoping to avoid that one

You will continue to be liable for Australian tax on your Australian investment property.   You'll have to submit an Australian tax return every year.   On the Aussie tax return, you'll still be able to claim your depreciation and expenses, exactly as you do now.

When you complete your IOM tax return, you'll declare your income from the Australian property and also declare the Australian tax paid.   They will deduct the Australian tax paid from the tax due to IOM.  

[hebs81]

Thanks for the advice, it's so hard to find someone to talk to who has experience across the two countries.

If we'd had the place longer we'd probably sell it too before moving, but it was always long term investment for capital gains so just a case of managing it from the IOM

[Marisawright]

41 minutes ago, hebs81 said:

Thanks for the advice, it's so hard to find someone to talk to who has experience across the two countries.

If we'd had the place longer we'd probably sell it too before moving, but it was always long term investment for capital gains so just a case of managing it from the IOM

Please do your calculations before you decide. You’ll get no tax-free threshold once you’ve left Australia, so you’ll be taxed on every single dollar

[bunbury61]

10 hours ago, hebs81 said:

So I've begun the process of moving back home (Isle of Man) after 11 years in Australia. I've mostly enjoyed my time here, traveled a fair bit, lived in different places but nothing quite feels like home, I even moved to the Snowy Mountains in NSW to get the snow!

I miss the closeness of everything in the UK, miss my family (I have none here), I miss greenery and deciduous trees (this is a weird one I know)

I'll hopefully have citizenship this year, been through the test just awaiting approval and ceremony, so I know I can come back if I want. My partner is Australian and is getting quite stressed about the whole thing, he's only ever moved once and that was only 500kms. I'm trying to reassure him that it will all work out but it's difficult.

We have just purchased an investment property here and as we won't be here we can't reap the benefits of depreciation on it, not unless we come back, this is stressing him big time.

Has anyone else got and intend on keeping property here when they move back, or have moved back? I know the tax system is different on the IOM but is there any way of claiming losses on an overseas property? It is fully mortgaged so it won't be giving us any income for quite some time, if ever, it's only for long term gain.

So so much to think about 

Yes , I kept two properties in oz , owned one outright , mortgage on the other .

The rent from the two , just about covered the mortgage on the one , as prices had risen .

IN SHORT ,IT WAS A BLOODY NIGHTMARE ....long long story .

SImply your life , if possible .

Whatever that means to you , that would be my advice .

Get your aussie citizenship 

[VERYSTORMY]

Will just chip in and say if you had to sell after being back in the UK it is fairly painless. We sold our house after moving back and it just needs a trip to Australia House in London to get the documents stamped. 

[Marisawright]

6 hours ago, VERYSTORMY said:

Will just chip in and say if you had to sell after being back in the UK it is fairly painless 

The actual process is painless but paying double the Australian capital gains tax isn’t 

[hebs81]

Thanks for all the advice, it's a bit of a mine field

 

[Marisawright]

42 minutes ago, hebs81 said:

Thanks for all the advice, it's a bit of a mine field

 

Indeed it is. Just to be clear, when you sell, you’ll be taxed by Australia on 100% of the capital gain in the property.