If you were me, would you sell or hold?

Hi PC,
Urgently need opinions please...
You see, my family and I are moving to the UK and will become EXPATS for at least 5 years this December and I really don't know whether to sell our place (western Sydney) or hold onto it. It's our only property and scareed if I sell and ever want to come back then I've no chance.

We purchased this place 5.5 years ago as our retirement plan (Im now 40 y.o) and had no intentions of selling but there are now so many factors making things difficult when you're a non resident.

Finance... I've no idea if I'll be able to get finance? I'm trying got get it in the remaining 10 weeks before departure but even that is not looking good as last 2 years tax returns are still waiting so I might be screwed there.

CGT and the budget... 6 year absence rule is almost up and I really don't know what to do here. I don't like to think about paying CGT but now with the govt smashing non residents I'm dreading this thought. If I sell while a non resident how much CGT will I be up for, it a shed load!
Also, what happens if we don't sell and come back to Aus and then sell... Its a minefield!

With 10 weeks to go the options are:
1. Keep it, try to re arrange new finance, hope I never need to sell the place.
2. Sell it, avoid CGT and not have it hanging over my head while away but risk never being able to get back into Sydney market.

Damn, really stuck on this. Any recommendations on who to talk to for professional advice on this?

 

Maybe try find a good accountant to run through the scenarios with you? I.e. What's involved in keeping the property in terms of costs and CGT.

Is it an IP or PPOR? Why does it need to be refinanced?

 

Thanks for advice.
re accountant, I've sent an email off to one whos been recommended to me.
I need to refinance as coming up to end of fixed period. I didn't have the foresight to think about this potential scenario when refinancing a couple of years ago. Now im in this scenario so need a good mortgage broker too.
Thanks again for your comments. Much appreciated.

 

Why is there a need to refinance? Are you not able to maintain the existing loan as an expat?

 

Fixed period coming to an end. Need a new loan don't I?

 

Who told you this? Call the bank and ask. Most likely the loan just rolls to normal variable loan.

 

Yes, sorry... that's correct. Problem is the rates it goes to for P&I invester loan a quite high. It's with ANZ.

 

Can you get better deal from other banks? Is there option to fix it again at lower rate?

 

Loan is only 1 part though.
CGT as a Non Res is a bit frightening!
Any expats out there

Yes... hence the refinancing part of the question and the race to get last 2 years tax returns back.
I really need a good broker. Any advice?

 

Considered the removal of the 50% CGT discount too?

 

Thanks Terry, 100%.

Think bundling it in terms of following questions may be my best point to start with?

• Question for Broker - Loan Structure - Which would be best while overseas if I hold?
  
  
• Questions for Accountants - If I sell:
  • While Overseas
    • New CGT rules for No res. What kind of numbers am I looking at
  • At Home before I go.
    • No CGT as 6 year absence rule available
    • Risk of never being able to come back to Sydney property if market moves while away.
  • At home once I get back
    • Is CGT pro rata and what kind of numbers (how to even work it out)
    • Do we even know yet if I move back in whether 6 year absence rule start again.