Hello all

Just wanted some feedback. I am planning to migrate to Aus (NSW) with family in a couple of years time and wondered if there were any (tax or otherwise) advantages to buying a house from UK.

My gut feeling with the market and our situation as it is that it might be best to rent for a year or two to take advantage of the market slumping further as it is the UK. We would also be eligible for the 7k dollar first time buyers contribution made by each state. However, our incomes are likely to be lower in Aus than UK which would mean lower total loans. Ultimately, I expect to subsidies the monthly mortgage loan payments from the sale of UK/CEE property so could afford a higher loan than our income would suggest.

Is it even possible to take out a mortgage in Aussie from UK based on UK income as primary residence?

Would we be better, even, to wait and build in Aus whilst renting?

Comments gratefully received,

Ash.

Hi there Ash

I can't advise on strategy, but I can tell you you will find it extremely difficult, if not impossible, to get a loan in Oz while not resident there.
My wife is Australian, but banks say it makes no difference unless she is also resident at the time of application.
Personally - and putting currency movements and property market cycles to one side - I would always advocate renting in a country you're new to before buying.

cheers

Hi Ash,

I bought an investment unit in Brisbane whilst living in Perth last year. I'm a UK resident and spent two years over there on sabbatical from work.

Points to note:

The mortgage application process was uncomplicated as a temporary resident. However, I cannnot comment on the ease of obtaining finance as a non-resident. Max 80%LTV in order to avoid prohibitively expensive "Lenders Insurance".

The first time buyers grant is only available to permanent residents as defined by your visa. If you are in this position, you will also make substantial savings on stamp duty. I entered on a temporary resident visa and hence was not eligible for either.

High interest rates (around 9% at present) due to inflationary economy.

Capital growth prospects fair in Eastern capitals but negligible in Perth/WA/ Darwin.

Very expensive dollar at present.

I wrote an article on this website recently which, although badly edited, provides some additional information.


All the best,
Nic Hillier

For what it is worth, I am a NZ citizen and I know there is a company specialising in sourcing mortgages for people living the UK wishing to buy in NZ (based on their UK income). I am not sure if there is a parallel company working in Australia, but the first place I would look would be the TNT magazine, a freebee that you can pick up on Tuesday's (I think) about London. It advertises to South Africans, Australians and New Zealanders and usually includes finanical services.