Jump to content

You're currently viewing the forum as a Guest
register-now-button_orig.png
and join in with discussions   
ask migration questions
message other members

..and much much more!

n1ck

Owning investment property in Oz while living in UK

Recommended Posts

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.

Share this post


Link to post
Share on other sites
Posted (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 by Marisawright

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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. 


So many wineries ......so little time :yes:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×