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To sell or not to sell in the UK

Discussion in 'General Property Chat' started by Melbcr, 21st Jul, 2016.

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  1. Melbcr

    Melbcr New Member

    Joined:
    17th Jul, 2016
    Posts:
    3
    Location:
    Melbourne
    Hi

    I have a query related to a property I have in the UK. I bought the property in 2005, and it was a PPOR, prior to moving to Melbourne in 2006. It has been rented out since moving to Melbourne. This is the only property that I own.

    I have been renting in Melbourne all the while (South East suburbs), but want to buy my first place here. The UK property has had some growth (finally) in the last 3 to 4 years.

    I have also checked to see if I could use the equity from the UK property as a deposit here, but can't find any lenders here in Australia or in the UK to allow me to use it as security.

    I have also considered the tax implications with respect to CGT in both the UK and here and this deters me from selling it.

    Given that I want to buy here, it makes sense to sell the UK property and use the proceeds towards a deposit for the place here. However, I wanted to know what others on this forum thought.

    Thanks
    Melbcr
     
  2. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,089
    Location:
    Kimberley and NZ
    We've just managed to sell ours but the issue now is the rubbish exchange rate if we bring the money over and also the rubbish interest rate of .5% if we leave the money in the bank over there. Can you keep the UK house, save a deposit and buy here?
     
  3. Melbcr

    Melbcr New Member

    Joined:
    17th Jul, 2016
    Posts:
    3
    Location:
    Melbourne
    Hi ellejay
    Have been working towards a deposit to buy, but with what we have currently, it would mean moving much further out plus other factors like LMI as compared to having a larger deposit. Also rate of saving versus rate of property prices can be challenging, though working towards it. ​
     
  4. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,089
    Location:
    Kimberley and NZ
    Moving much further out may well be a much smarter move than not buying anything, if you can get the deposit. LMI sticks in the throat a bit but the way the Melbourne market is going it could end up saving you a fair chunk of money by at least getting your foot in the door in a rising market.
     
    Cia and ashish1137 like this.