804 visa and property purchase

[Gillian Huitson]

We are looking to go to Aus on 804 visa - via daughter and step daughter sponsor.  They have lived there 6 years and we wld like to purchase property.  Idea was to live 6 moths Oz and 6 uk - renting out Oz property when in uk to finance bills and flights.  Wld be buying for cash but seems lot of fees for doing this and from what I have read Oz does not allow us to rent out. Can u give any info that might help please?

[Marisawright]

28 minutes ago, Gillian Huitson said:

We are looking to go to Aus on 804 visa - via daughter and step daughter sponsor.  ... Wld be buying for cash but seems lot of fees for doing this 

Whether you buy for cash or get a mortgage, the fees for buying a property will be exactly the same. 

If you will be on a bridging visa while you wait for the 804 visa, there are extra fees because you are classed as a foreign investor. 

I think your Australian property would be classed as a "holiday letting" and therefore you can't claim the tax breaks that ordinary landlords can - however I'm not aware of any laws that say you can't rent it out.  Where did you read about it?

The hurdle to your scheme might be insurance for your UK property while it's empty, as it's not usually covered for more than 90 days unoccupied.  I think there are similar problems with a car. 

[ramot]

11 hours ago, Marisawright said:

Whether you buy for cash or get a mortgage, the fees for buying a property will be exactly the same. 

If you will be on a bridging visa while you wait for the 804 visa, there are extra fees because you are classed as a foreign investor. 

I think your Australian property would be classed as a "holiday letting" and therefore you can't claim the tax breaks that ordinary landlords can - however I'm not aware of any laws that say you can't rent it out.  Where did you read about it?

The hurdle to your scheme might be insurance for your UK property while it's empty, as it's not usually covered for more than 90 days unoccupied.  I think there are similar problems with a car. 

The rules need to be checked as they might have changed since we bought our home here on a long term temporary 410 retirement visa.

The rules on our visa were that we had to get FIRB approval and unless we bought a new property we were not allowed to rent out the property.

 I have heard that unless you are a PR, there is a hefty increase in the amount you are charged now to buy a property if on a temporary visa here.

please check the above information 

[Marisawright]

1 hour ago, ramot said:

The rules need to be checked as they might have changed since we bought our home here on a long term temporary 410 retirement visa.

The rules on our visa were that we had to get FIRB approval and unless we bought a new property we were not allowed to rent out the property.

 I have heard that unless you are a PR, there is a hefty increase in the amount you are charged now to buy a property if on a temporary visa here.

All that is true, but if they're on the 804 visa, I'm pretty sure that is a PR visa. 

If they're planning to arrive on a tourist visa then apply for the 804 onshore, then that's a different kettle of fish and there are a LOT more complications which they need to look into, as you know.  For one thing, I'm not sure they would have travel rights to come and go every six months.

Edited March 31, 2019 by Marisawright

[Gillian Huitson]

Thank you - Original information gained from Haskewlaw.com emigration services they state:-“

Temporary residents are not permitted to purchase established dwellings as investment properties, to rent out, or as holiday homes.

Temporary residents need to apply and receive approval before purchasing an established dwelling for redevelopment.

The Uk property wld also rent out on 6 months tenancy and therefore insurance wld be ok as a tenanted property - or relation to live there for period whilst away.  

I realise tax returns wld be required in each country but they have dual arrangement. 

Okay so:- Can we obtain a PR visa either 804 or 103 first (rather than temp) whilst in England?

If so then can we purchase property and would this save the FIRB and additional stamp duty or wld this still be payable? Then wld this permit us to rent out?  

 

[ramot]

1 hour ago, Gillian Huitson said:

Thank you - Original information gained from Haskewlaw.com emigration services they state:-“

Temporary residents are not permitted to purchase established dwellings as investment properties, to rent out, or as holiday homes.

Temporary residents need to apply and receive approval before purchasing an established dwelling for redevelopment.

The Uk property wld also rent out on 6 months tenancy and therefore insurance wld be ok as a tenanted property - or relation to live there for period whilst away.  

I realise tax returns wld be required in each country but they have dual arrangement. 

Okay so:- Can we obtain a PR visa either 804 or 103 first (rather than temp) whilst in England?

If so then can we purchase property and would this save the FIRB and additional stamp duty or wld this still be payable? Then wld this permit us to rent out?  

 

All parent visas are taking years now to issue so whichever visa you are eligible for and can apply for everyone is in for a long wait.

 

[Marisawright]

21 hours ago, Gillian Huitson said:

Okay so:- Can we obtain a PR visa either 804 or 103 first (rather than temp) whilst in England?

Yes, in fact the "correct" way to get a parent visa is to apply while you are still in England, and then wait for it to be granted.  You can still make visits to Australia on a tourist visa every year, while you wait.   

However, only a handful of parent visas are granted every year and there are thousands waiting.  Therefore it's becoming common for people to "jump the queue" by pretending they're going on holiday, then once they're in Australia, they apply for the parent visa.  I think that's what the agent is suggesting for you.

It's not illegal but it's important to understand that it's a workaround, and therefore there are important downsides and risks that you need to understand.

You'll be given a "bridging visa", which means that you're allowed to stay in Australia until they get around to looking at your parent visa application (which will be several years). But legally, you are still regarded as a foreigner on Australian soil.  That means you aren't entitled to any of the benefits an Australian is entitled to.  Depending on the conditions of the bridging visa, you may or may not get access to full Medicare.   You may not have travel rights - which means you have to apply for special permission to leave Australia every time you want to visit the UK, and you must have a "good reason" (like a wedding or funeral or business to attend to) - so your six months here/six months there may not be possible.   And as already stated, if you want to buy property, you'll be treated as a "foreign investor".

The other thing to note is that if you don't have travel rights, meaning you're spending most of your year in Australia every year, you may lose the right to access the NHS in the UK.

The conditions on bridging visas do vary, depending on the visa you've applied for.  A good agent should know exactly what the restrictions will be and should be explaining them all to you. If they're not, I'd find another agent!

On balance, since you're planning to split your time between the two countries anyway, I wonder if you'd be better off applying for the parent visa whilst in England, then just using tourist visas to visit Australia every year until it comes through.  You could still buy a property in Australia for your use - again, you'd be treated as a "foreign investor" which means extra fees, however if you buy a brand new home, you are allowed to rent it out.