If you’re an UK expat living in Australia, purchasing a property back home in the UK may sound exciting. However, buying a property in the UK often requires lots of research and planning. The legal procedures, rules and regulations for purchasing a property do tend to differ from country to country. For instance, expats who plan to invest in UK property while living in Australia need to know that property deals in the UK are invariably overseen by Estate Agents.
Aside from this, there are a few essential details that UK expats who want to buy property back home must be aware of. Here are the key things you need to know:
Legal Considerations
Searching for UK properties while living in Australia means dealing with many legal considerations.
- You’ll need to appoint a UK-based solicitor who will be responsible for searching for properties and dealing with contracts on your behalf.
- Additional taxes are imposed on overseas buyers. These buyers must pay a specific percentage of stamp duty land tax. Additionally, those hoping for rental profits are likely to face higher levels of income tax.
- Consider mitigating currency risk – exchange rate fluctuations may have a big impact when it comes to how much you’ll pay for the property.
Financial Considerations
Covering the cost of your UK property means taking various financial considerations into account before you take any big steps.
Borrowing Power
In order to invest in UK property while living in Australia, you’ll need to ensure that your borrowing power is strong enough for lenders to give you the right financial options. If you have a stable income, this should help you get approved. Lenders will assess your annual salary and any additional income you’re receiving before they proceed and give you the help you need.
Credit History
Credit history plays a major role when it comes to successfully buying a property in the UK. It’s essential to maintain a strong Australian credit history to get the right results. You’re also likely to get the outcome you’re looking for if you don’t have debts like large personal loans or credit card balances.
Mortgage Options
Mortgage approval is vital when it comes to purchasing UK properties while living in Australia. You can get useful information about expat mortgages uk from leading brokers. Expat mortgages come with their own specific rules and regulations. Reputable expat mortgage brokers specialise in getting you the best deal, with flexible terms that work for you.
If your expat mortgage application is to be successful, you’ll need to do the following:
- Prepare all relevant documents: (proof of identity, address and income, bank statements, tax returns and employment details etc).
- Find the right lender: explore suitable banks that specialise in expat mortgages.
- Get the deal you’re looking for.
- Find the UK property that meets your needs.
- Submit the application to the mortgage lender.
- Undergo a property valuation.
- Receive a mortgage offer (if you’re approved).
- Complete the transactions and finalise the purchase with a UK Solicitor.
Top Investment Strategies in UK properties while living in Australia
Investing in UK property can be beneficial if you invest strategically. From acquiring rental income to potential capital appreciation, the right investment can come with many benefits.
Create a Property Portfolio
We strongly recommend that you explore the UK property market in depth before you invest, especially as property rates can vary from city to city. For example, properties in Birmingham and Manchester tend to be much more affordable than those in London. You’ll also need to explore high demand areas where you can generate considerable rental income and are likely to see significant growth.
Managing Mortgages
Before you take the final step and apply, look closely at the various mortgage conditions and regulations you’ll need to comply with. Make sure you’re aware of the repayment policies you’re agreeing to and the future benefits you’re likely to receive from your mortgage and investment.
One of the best ways to approach managing your mortgage is to work with a specialist expat mortgage broker UK. A trustworthy, experienced broker will guide you through the various processes involved with your application and protect you from any potential financial obstacles.
Understanding UK Tax Rules
Now you’ve decided to invest in UK properties, it’s essential to educate yourself about overseas buyers’ tax rules. Understanding the local market and occupancy rates is imperative if the deal is to be successful. Tax rules for overseas landlords can vary from the ones you may be used to dealing with. This is why it’s so important to seek advice from an expat mortgage broker UK who can help you avoid confusion and unnecessary complications.
Valuing the Property
If you’ve been looking at various UK properties while living in Australia and have found one or two you’re interested in, make sure you have a full property valuation completed. Not only does a valuation closely examine the construction of the building but it also assesses its valuation to ensure you’re not paying too much.
Even after you’ve purchased the property, you can still hire a property management company / Lettings Agent that will keep a close eye on things in your absence. They will also ensure that your home away from home is continually maintained in the right manner.
To Summarise
Investing in UK properties whilst you’re living in Australia can be a great idea that delivers much financial prosperity. However, if you’re an expat, you will need to consider various financial implications before you close the deal. One of the most sensible approaches is to choose expat mortgage UK to help you on your investment journey. This will not only increase your chances of acquiring the best property in the UK but also help you avoid unforeseen financial difficulties.
Thinking About Buying UK Property While Living in Australia?
Are you ready to get expert help with navigating legal, financial and mortgage hurdles from specialists who understand the unique needs of expats? Contact us today to get started on your UK property journey.