Buying an IP then moving overseas

I'm hoping someone has been in a similar situation, or can offer some advice..

I have been looking for a PPOR in Sydney for the past while, but may have to move back to the UK at some stage down the track.
I'd like to turn this into an IP and hopefully have the rent cover the mortgage. The plan would likely be to return to Australia in later life with a decent portion of this paid off. I'd make this my PPOR again for at least 6 months.

What tax implications am I up for here? I will be working in the UK but I gather I'll be a foreign resident for tax purposes due to rental income.

Will I still be able to claim the usual IP tax benefits such as interest/strata/management costs even though I won't have Australian income besides the rent? How would this work if I had to contribute extra to the mortgage during the early years?

Cheers!

 

no tax free threshold
no 6 year rule
no 50% CGT discount
No cost base reset even.

 

Would All those points be the case even if the OP returned to Australia and became an Australian resident at the time of sale?

 

This is what I was getting at with the moving back into the property for 6 months bit..

 

nope

 

Which suburb will you be buying in?

 

Add Land tax.

 

If was buying a unit would this still be the case?

 

Units still have land.

 

Just so I understand clearly - does this apply to all the following scenarios?

Buy PPOR, live in it for 3 years -> Turn into IP cause moving overseas -> come back and live in it for x time -> Sell it
Buy PPOR live in it for 3 years-> Turn into IP cause moving overseas -> Stay Overseas and sell it

Thanks

 

it could

 

Are you an Australian citizen? If not, beware of supplementary land tax in NSW...