Hi all,
Need some help…
I am buying a residential property in London and am looking at keeping the investment for about 5 – 10 years.
I will be required to pay tax on the income generated from the investment in England which is fair enough.
When I sell the property however, I know I wont be subjected to CGT in England. What type of CGT rates will I bear from the ATO.
I am an Australian Citizen.
Thanks for future replies.
PS. Does anyone know of a good web site that delves into this area.
Regards,
Diana Kober[
]Hi Diana
I’ll have a go…
If you are an Australian resident then you will have to include the taxable gain as assessable income (and pay tax at normal marginal rates). You will get a tax credit for any tax that you have paid in the UK.
If you are a non-resident then you will not have to pay CGT as the asset does not have a connection with Australia (i.e. the assets outside of Australia).
However, it’s important to check with an accountant as this is a complex area and there may be some tax planning opportunities.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auI know this isn’t an answer to your question, but given that investing in London isn’t really a big part of the board, I thought I’d throw a question in here.
What sort of return (and outlay) are you looking at and how did you manage to do the finance? I’d really love to invest in London, but prices seem crazy (and rents not up to the point where they pay for themselves).
I’ve looked at http://www.home.co.uk which seems to give a fairly good indicator of price, and UK prices seem to be as crazy (if not more so) than ours.
Any info would be great.
Thanks in advance
Cheers,
Jon.
I know this isn’t an answer to your question, but given that investing in London isn’t really a big part of the board, I thought I’d throw a question in here.What sort of return (and outlay) are you looking at and how did you manage to do the finance? I’d really love to invest in London, but prices seem crazy (and rents not up to the point where they pay for themselves).
I’ve looked at http://www.home.co.uk which seems to give a fairly good indicator of price, and UK prices seem to be as crazy (if not more so) than ours.
Any info would be great.
Thanks in advance
Cheers,
Jon.Jon,
I have been living in London now for 5 years, and am ready to come home soon.
The capital growth in house prices over the last 5 years has been amazing. Alot of Buy to Let mortgages have soaked the market in the last 2 years, as the stock market has scared off a lot of private investors.
That aside, I am looking at getting a BTL mortgage with a property which rents out at around 130% of the mortgage repayments. There are still properties that are available. For a BTL over here, you need around a 20% deposit.
I am looking for a 1 or 2 bedroom flat in central london to Greater London (Needs to be inside the M25 Motorway).
I have thought about waiting until I get back home to invest in property, but strongly believe that London House prices will continue to gain in capital growth (even though in some ‘upper class’ areas of central london like chelsea and Kensington) that house/flat prices have started to drop.
I am looking at an investment window for 5 – 10 years.
Considering London is a very popular place for worldwide travellers, I believe that the rental demand in the capital will always be high. As house prices are too high, potential first time buyers can’t afford to get on the property ladder at the moment, so they are being forced back into the rental market.
I am looking at a Flat around the £150,000 mark, so will come up with a £30000 deposit. Hopefully, after that, my tennants will pay the rest of the mortgage off.
hope this helps.
DianaThanks for the info. Must admit I’m curious about London. Lived there in 95 – 97 and had I really thought about it seriously would have looked at buying.
I did some looking around, but was not really confident enough to do the deal (and wasn’t sure about buying a place in a country where I wasn’t allowed to live).
Interesting thing was there seemed to be quite a lot of short term leasehold stuff for sale – especially in Central London. You’d pay freehold prices for a lease that lasted 15 – 20 years.
(Would have been very interested to find out if you could buy freehold and then sell the lease for 15 years – assuming it came back to me at the end of the 15 years).
Still want to buy a place there (but given I really want to move back, that’s not surprising).
I’m also curious about england, but more in the mid north. My aunt is in the room who lives in dorset area sw of london but was saying that the houses are cheaper up in the midnorth. Whats the unemployment like up there and also, showing my ignorant aussie side, what major cities and industries up in that region? if you want to email me about this my email is [email protected]
Thanks
The unemployment level in Derby is 5.5%
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