Hi Guys,
Totally new to investing and after much reading my wife and I need some advice. A whole heap actually. But to start with, we are looking to finance our first property which will be an IP with funds raised from re-financing our UK home (which is currently rented out and has become a nice little earner) and bringing the funds here to get us started. We have been in Australia for 5 1/2 years and saving is not going as we will like. What are the tax implications for such a move both now an din the long run? Can anyone recommend a good FA that can help my case with its overseas aspect? We are based northern side of Sydney if that matters. Thanks in advance for all the helpful comments.Hi IC
Welcome to the forum and I hope you enjoy your time with us.
As a fellow Pom I can understand you wanting to bring your funds across and start investing in Australia.
Certainly the rates of interest in the UK are considerably lower and as long as you manage the currency risk accordingly your cost of borrowing will be a lot lower.
It will depend on the loan to valuation as to whether Aussie lenders will accept your overseas funds as genuine savings but a few ways around this.
If the funds raised are used for investment then the interest will be tax deductible even if raised from overseas.
Being your first investment i would start slowly and then look to increase your portfolio over time.
Finally which part of the UK are you from?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard, Thank you for your response. We are lived Basildon before we moved to Australia.
I am looking to start small, first IP before the end of the year and see how possible it is to get another one in 12 months time after that. I am looking at putting together a setup and want to get it right from the get go. I work full time and my wife works part time we have been thinking to have all our IPs joint, with one offset account for first and subsequent IPs but separate mortgages. Does this sound like a good starting position?
Can you point me in the direction of an accountant that have an understand of UK taxes, and one that I can use as when I do get started with my investment?
Thanks
Hi IC
Ok an Essex boy. I am from further south in Bournemouth.
Yes set up sounds ok but wouldn’t pay a premium for separate offset accounts as just having the 1 is enough.
First loan might have an offset attached and then a basic loan with no frills.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ha! Ha! hardly.
Thanks.
Get some tax advice on ‘withholding tax’ – otherwise you won’t be able to claim any interest if you do not withhold tax. There may be an exemption for double tax agreement countries though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Thanks for the heads up on withholding tax. Should an accountant know be able to give correct advice on this. I need to find one that knows what they are doing.A tax agent or lawyer should be able to advise on that.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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