Jc86 Posted June 6, 2019 Share Posted June 6, 2019 Is it possible to buy a house in the UK whilst still living and earning in Australia. wanting to buy it for my parents to live in and pay us rent etc... Quote Link to comment Share on other sites More sharing options...
rammygirl Posted June 6, 2019 Share Posted June 6, 2019 Depends - if you are paying cash, yes but if you own another home anywhere in the world you will pay additional stamp duty. If you need a mortgage then it gets tricky as few will lend on foreign earnings, even re mortgaging a property in the UK is almost impossible now and you will pay for it. Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted June 8, 2019 Share Posted June 8, 2019 On 06/06/2019 at 08:21, rammygirl said: Depends - if you are paying cash, yes but if you own another home anywhere in the world you will pay additional stamp duty. If you need a mortgage then it gets tricky as few will lend on foreign earnings, even re mortgaging a property in the UK is almost impossible now and you will pay for it. If you intend on getting a buy to let mortgage then you will struggle because family are not allowed to be your tenants Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted June 8, 2019 Share Posted June 8, 2019 (edited) On 06/06/2019 at 08:21, rammygirl said: Depends - if you are paying cash, yes but if you own another home anywhere in the world you will pay additional stamp duty. If you need a mortgage then it gets tricky as few will lend on foreign earnings, even re mortgaging a property in the UK is almost impossible now and you will pay for it. If it’s a buy to let then it is looked at from the rental income that it will get rather than owners income but you cannot have your parents as tenants Edited June 8, 2019 by Tulip1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 8, 2019 Share Posted June 8, 2019 On 06/06/2019 at 15:33, Jc86 said: Is it possible to buy a house in the UK whilst still living and earning in Australia. wanting to buy it for my parents to live in and pay us rent etc... If you are buying it for your parents to live in, it won't count as an "investment property" for tax purposes in Australia, even if they pay you rent. You'll have to declare all the income on your Australian tax return but you won't be able to claim any of the expenses. Quote Link to comment Share on other sites More sharing options...
steven106 Posted June 29, 2019 Share Posted June 29, 2019 We are basically looking at expat Mortgages, we have enough to put a deposit down in the uk for a house and easily pay for it with earnings we get from our Aussie wage. we are looking at moving options in both countries. for future retirement,. We are wanting to know if anyone has done it before and have any advise.. surly there is people out there who earn a out of uk wage but are wanting to have there base in the uk. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 29, 2019 Share Posted June 29, 2019 (edited) 56 minutes ago, steven106 said: We are basically looking at expat Mortgages, we have enough to put a deposit down in the uk for a house and easily pay for it with earnings we get from our Aussie wage. we are looking at moving options in both countries. for future retirement,. I can't help with expat mortgages but want to mention, in case you're not aware - just be very careful when planning for retirement back in the UK, as pensions and superannuation get to be a minefield. If you go back to the UK, for instance, you can't get the Australian govt pension and you'll get taxed on your super. So even if it's a long way away, it's important to look into it all. People do end up getting stuck in Australia, in spite of longing to go back, because they would lose too much money by doing so. Also of course, if you have kids and wait until they're grown, you could end up with grandkids in Australia that you'll be reluctant to leave. In summary, if you're missing the UK, plan to go back earlier than later - and in the meantime, keep up your NI contributions. Edited June 29, 2019 by Marisawright Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted June 29, 2019 Share Posted June 29, 2019 11 hours ago, steven106 said: We are basically looking at expat Mortgages, we have enough to put a deposit down in the uk for a house and easily pay for it with earnings we get from our Aussie wage. we are looking at moving options in both countries. for future retirement,. We are wanting to know if anyone has done it before and have any advise.. surly there is people out there who earn a out of uk wage but are wanting to have there base in the uk. But if you’re needing a mortgage then your parents living in it is likely to cause issues. You need to contact UK banks/building societies and ask them what their stance is on that. I do know many will not allow close relatives living in it. As I’ve mentioned, if you do not intend on living in it yourself then it is a buy to let. If that’s the case I think you will struggle to find a lender who will allow your parents to be the tenants. If you are renting it out to others then different. Why not do a generic email and send to the big lenders. At least that way you’ll know your options Quote Link to comment Share on other sites More sharing options...
steven106 Posted June 29, 2019 Share Posted June 29, 2019 Parents living in it will not meaning we need the money to rent it.. we are in a position to still pay for the mortgage outright on a uk home as well as an Australian home, we would be putting the in-laws in there basically to look after the house not to cover the rent etc. We would be back ever year and be half in uk and and Australia basically so we have a base in both countries. Quote Link to comment Share on other sites More sharing options...
Parley Posted June 30, 2019 Share Posted June 30, 2019 I don't think the bank would know who your tenants are. Quote Link to comment Share on other sites More sharing options...
steven106 Posted June 30, 2019 Share Posted June 30, 2019 18 minutes ago, Parley said: I don't think the bank would know who your tenants are. No because i will be still paying for the mortgage as if i was living in the house... would be no letting agent involved... Quote Link to comment Share on other sites More sharing options...
Nemesis Posted June 30, 2019 Share Posted June 30, 2019 2 minutes ago, steven106 said: No because i will be still paying for the mortgage as if i was living in the house... would be no letting agent involved... be careful when it comes to insurance purposes though, just n case the worst happens. If the contract says "no family and you don't abide by it, that may invalidate any future insurance claims. 1 Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted July 1, 2019 Share Posted July 1, 2019 On 30/06/2019 at 03:51, Parley said: I don't think the bank would know who your tenants are. The question would be asked as part of the application process so they would know Quote Link to comment Share on other sites More sharing options...
Tulip1 Posted July 1, 2019 Share Posted July 1, 2019 On 30/06/2019 at 04:10, steven106 said: No because i will be still paying for the mortgage as if i was living in the house... would be no letting agent involved... It’s not a case of if you’re still paying the mortgage and whether there’s a letting agent involved. It’s the lenders rules. You have stated that parents will live in it and rent it from you therefore you will have to disclose that to the lender. You later state you will live half and half in Oz and the UK. You are very fortunate to have jobs that allow that. You’ve gone from your original question “Is it possible to buy a house in the uk whilst still living and earning in Oz. Wanted to buy it for my parents to live in and pay us rent” also said you want an ex pat mortgage. That sounds like you are an ex pat wanting to buy a property by way of a mortgage and your parents live in it and pay you rent. When someone answered they wouldn’t know if you had tenants your reply was no because I’ll be paying the mortgage and they’ll be no agent. It’s quite likely the lender wouldn’t know unless you told them. However, you will be asked about the use of the property and who will live in it. If you tell them the truth then it will either be a yes or a no. It’s simple, just contact lenders and ask the question Quote Link to comment Share on other sites More sharing options...
rammygirl Posted July 1, 2019 Share Posted July 1, 2019 On 09/06/2019 at 09:02, Marisawright said: If you are buying it for your parents to live in, it won't count as an "investment property" for tax purposes in Australia, even if they pay you rent. You'll have to declare all the income on your Australian tax return but you won't be able to claim any of the expenses. Not entirely true but a bit of a grey area. If they are paying you commercial rent amount and have a contract then it will still count as an investment. If they are paying less than the going rate then it will come under personal use. Or at least this is how I understand it. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 1, 2019 Share Posted July 1, 2019 (edited) 49 minutes ago, rammygirl said: Not entirely true but a bit of a grey area. If they are paying you commercial rent amount and have a contract then it will still count as an investment. If they are paying less than the going rate then it will come under personal use. Or at least this is how I understand it. I'm talking about Australian tax and they changed the rules a few years ago so that renting to family members means it no longer counts as an investment and you can't claim any deductions (but you still have to declare the income so they get you both ways!). The bank might still regard it as an investment for mortgage purposes but for tax, no. Edited July 1, 2019 by Marisawright Quote Link to comment Share on other sites More sharing options...
rammygirl Posted July 2, 2019 Share Posted July 2, 2019 1 hour ago, Marisawright said: I'm talking about Australian tax and they changed the rules a few years ago so that renting to family members means it no longer counts as an investment and you can't claim any deductions (but you still have to declare the income so they get you both ways!). The bank might still regard it as an investment for mortgage purposes but for tax, no. So was I. I read it that if they are paying the going rate then it counts. That is the case with friends of ours who’s daughter and partner are currently renting their investment property. They are paying the same rent as previous tenants and they are still able to claim deductions. Different if they pay a mates rate. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 2, 2019 Share Posted July 2, 2019 18 minutes ago, rammygirl said: So was I. I read it that if they are paying the going rate then it counts. I had to look it up and yes, you are right. If they have a proper lease agreement and they're paying the going rate for the property then it does count. The snag is that many people will be tempted to charge a bit less since it's their family, and then they run into trouble. Quote Link to comment Share on other sites More sharing options...
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