Jump to content
Bonsta

Living in Oz but Investing in UK

Recommended Posts

Hello, We own property here in Sydney but are looking to buy an investment property in the UK. Just wondering if anyone knows of the pros and cons to this please as I am unfamiliar with all the tax implications involved and trying to weigh up if it will be worth it? Obvs this will mean us getting a loan too, is it better to get one from Oz or in the UK? Any advice much appreciated :O) Thanks

Share this post


Link to post
Share on other sites
4 hours ago, Bonsta said:

Hello, We own property here in Sydney but are looking to buy an investment property in the UK. Just wondering if anyone knows of the pros and cons to this please as I am unfamiliar with all the tax implications involved and trying to weigh up if it will be worth it? Obvs this will mean us getting a loan too, is it better to get one from Oz or in the UK? Any advice much appreciated :O) Thanks

If you find someone willing to give you a loan please post the information on here. There's a lot of people who are or have been interested in doing that but the banks don't play ball. UK banks are interested in lending to people that are overseas and Australian banks are not interested in security that is overseas.

It doesn't help that in either case the bank would have to comply with two different legal systems while their systems are set up only to comply with the one they are in (and they spend a lot of money and effort to ensure they comply just for that one country).

I'd be happy to give some advice on tax implications but I don't see you getting past the loan hurdle unless you have enough equity on your Australian property to secure it on that, and enough Australian income such that the loan isn't reliant on the foreign rental income.

  • Like 1

Chartered Accountant (England & Wales); Registered Tax Agent & Fellow of The Tax Institute (Australia) www.kbfayers.com

Share this post


Link to post
Share on other sites
4 hours ago, Bonsta said:

Hello, We own property here in Sydney but are looking to buy an investment property in the UK. Just wondering if anyone knows of the pros and cons to this please as I am unfamiliar with all the tax implications involved and trying to weigh up if it will be worth it? Obvs this will mean us getting a loan too, is it better to get one from Oz or in the UK? Any advice much appreciated :O) Thanks

I can’t help with financial advice, but we have owned investment properties  for many years in UK, as we were expats before living here.we always used a management company and  luckily never  had any problems, but would in future buy here, I think it’s simpler.

The downside we have just experienced is the ridiculous UK system to buy and sell properties. It has just taken 6 months to sell a one bedroom flat, with no mortgage, from an investor to another investor with no chain.from the sale agreed to completion!!!   Solicitors were either incompetent or just couldn’t be bothered. Emails went unanswered, I think my husband did more work than they did, and midnight phone calls were not appreciated!  That experience is enough to put us off re investing there.

We have then had to set up a UK CGT account with HMRC and have 60 days to pay the CGT. 

 

Share this post


Link to post
Share on other sites

Is there a very good reason why you want to buy in Uk?  Honestly even if you didn’t need a loan you will be paying extra stamp duty and will need good management. 
Agree with Ramot on the buy/sell process too. FIL died a while back and even after probate was finally granted (close on a year).the agreed  House sale is dragging on for months and months, problem now is with the land registry who are painfully slow and don’t respond. Luckily buyers are still hanging on………….. they could have built one by the time this is settled.

 

 

  • Like 1

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

Share this post


Link to post
Share on other sites

Had similar issues....went over for 3 weeks to arrange the sale of my dad's house in February before he comes here, a simple house and big garden split off for a building plot....no mortgage or chain complications.  The land has taken 5 months to sell to a cash buyer, the house isn't even on the market yet because the new boundaries have to be registered with land registry.  They are bloody hopeless.  The estate agent nearly fell off his chair when I said we usually had 30 days to complete over here.....it concentrates the miind somewhat when you work to a deadline.  On the bright side, prices are still rising over there and he doesn't have to hang around there waiting for the house to be sold now.

Share this post


Link to post
Share on other sites

Thanks everyone for your responses. We shall persist to see where we can get a loan (ie. Oz or UK) Are there solicitors here in Oz that deal specifically with overseas house sales does anyone know please?????

Share this post


Link to post
Share on other sites
3 hours ago, Bonsta said:

Thanks everyone for your responses. We shall persist to see where we can get a loan (ie. Oz or UK) Are there solicitors here in Oz that deal specifically with overseas house sales does anyone know please?????

Try HSBC.  If they won't do it then I'd say you're out of luck.  There are companies that specialise in arranging finance for expats -- however expats are usually high-powered executives who've been temporarily posted abroad, and their whole tax situation is usually very different from a migrant's, so you can be led down the garden path (and pay very high fees for the privilege). Loans for expats usually have very high interest rates too.

I think you'd have to get a British solicitor.  Here in Australia, a Victorian solicitor isn't even allowed to handle a Queensland house purchase, let alone an overseas one. 


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

My new novel, A Dance With Danger, is due out August 2022

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

×