n1ck Posted June 4, 2020 Share Posted June 4, 2020 This is a question for anyone that has bought a property in Australia then returned to the UK and kept it as an investment property. Were you up for a big tax bill each year? As a foreign resident you don't get a tax-free threshold, so any rental income will be taxed.Did this along with any land tax make it worth your while, minus any deductions such as strata/loan interest etc? The aim would be to move back into the property down the track. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 4, 2020 Share Posted June 4, 2020 (edited) It's a matter of doing your own sums. If you're not conversant enough to work it out for yourself, it would be worth a short consult with a tax agent to get them to work it out. We were planning to retire back in the UK and at the time, we had an investment property. We did our sums and decided it wouldn't be worth hanging on to them. As you say, you get no tax-free threshold so you're going to be taxed on every dollar of income, so that was the first issue. The bigger hurdle for us was capital gains - because we wouldn't ever live in it, even if we returned to Oz. And we knew we'd want to sell it one day. So we sold it before we left and got a capital gains bill for nearly $40,000. However if we'd sold it after becoming non-resident, the capital gains bill would've been double that! Edited June 4, 2020 by Marisawright Quote Link to comment Share on other sites More sharing options...
n1ck Posted June 4, 2020 Author Share Posted June 4, 2020 14 hours ago, Marisawright said: If you're not conversant enough to work it out for yourself Well, I am...... But I'm asking for other's experiences of doing this. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted June 5, 2020 Share Posted June 5, 2020 We bought land as overseas invesrors (FIRB) whilst in UK for a while. We built and rented out in Oz whilst resident in UK. We now live in the house. We didn’t have a mortgage and we used a tax agent who did both UK and Oz returns. We had a very good Letting agent too! Yes tax is high but we we still made a positive return. Unlike in Oz you cannot offset any loss against other income so no negative gearing. It was definitely worth it for us we love living here and we got the land much cheaper back then and an exchange rate of 2.5! It worked for us but you need to do the sums for your own situation. Quote Link to comment Share on other sites More sharing options...
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