17 May 2010 12:19 PM
|I'd sell it. Heres why...
Of course the income will be taxed, its foreign income, and the tax rate that will apply will be at your marginal rate. (The highest tier that you pay - for a lot of people here - thats around 40%).
In Australia, losses for an Australian investment property can be claimed against Aussie tax paid. This does not apply to an overseas investment property. Of course if you sell it once you have moved here, the profit you have made will be subject to Aussie tax (taking into account any UK tax you will have to pay).
With the UK in such terrible financial shape and talk of second homes flooding the market due to the CGT possibly rising in the emergency budget (from 18% to 40%), this could have a knock on effect on house values - and soon, depending on what happens.
Managing property and dealing with issues is v. hard from over here, you are so far away and therefore any required maintenance could cost you a lot more than if you were there to sort it.
Coming here with the best possible sum of money that you can scrape together will ensure your best possible chance of making things work here - if you intend in moving for good, and like property as an investment, buy here and get the generous tax deductions for owning an investment property, or buy shares in property trusts!
Just my thoughts... sure lots of others will offer valid points too. Lots to consider - good luck.