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  • #997360
    Soccerooplugger
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    Hi all

    I am new to this forum. I lived in UK for a while before relocating back to Oz.

    We rented out our UK property whilst making the move and seeing how it all went.

    We now own a Sydney outer suburbs house, which we live in, after renting for one year whilst securing jobs and all that. We are in the process of selling our UK property now, in order to get more equity in our offset mortgage in Australia.

    We are hoping to net a decent amount from the sale after paying off mortgage and all costs.

    We are even thinking that we might have enough to invest in a property in Wollongong, which maybe reasonably affordable, compared to Sydney, and a reasonable sort of investment.

    Any advice or pitfalls we should be aware of?

    #1211713
    Corey
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    Hi and welcome,

    Property resources at NSW Government Fairtrading – Tenants and Home Owners

    Cheers
    Corey

    #1211714
    Ross Forrester
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    When you move to Australia you are deemed to have purchased, for Australian tax purposes, your UK property for its market value at the time you moved here.

    Any increase in value from the time you landed in Australia to the sale event will trigger a capital gains tax event and you will pay Australian tax on that profit.

    If you pay UK tax on the sale of that profit the Australian tax system will reduce the tax payable by the amount of the UK tax paid.

    #1211715
    Ross Forrester
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    And structure your loans with offset accounts.

    #1211716
    Soccerooplugger
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    Thanks Ross. The bit about Capital Gains will be useful.

    #1211717
    Brad Horan
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    Do get advice on this if you are expecting to have a good gain on the property. If you are in the top tax bracket here you will likely pay more tax here than UK so you’ll want to understand the best way to manage the sake and gain.

    #1211718
    Jess Peletier
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    There are some good, tax-effective tricks that you can implement to reduce the non-deductible tax on your owner occupied before buying your new investment property – this can save you a fortune in tax over the life of your loan, so make sure you get a good broker on board to chat to you about the loan structure if it’s not too late!

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