I'm an Australian living in the UK and have been here for 5 years. I've saved up lump sums on both sides of the world. They are both enough to put forward towards a deposit on a property. Currently, they are sitting in index funds.
I intend to head back to Australia in the medium-term future - 3 to 5 years - to settle down. At that point, I could have British citizenship as well.
My conundrum: I want to purchase a property, but where and how?
Buy a property here in the UK as my rent is substantial enough to cover a mortgage repayment.
- If I buy a property and then leave it as an investment, managing it from the other side of the world would be quite difficult. I would imagine letting agents would take me a ride unless I luck out and find a trustworthy one.
- Considering the uncertainty in the British economy currently, this would be a long term investment if anything. I think over the long term it could be a fruitful investment.
- If I leave the UK with a property but not being a British citizen, what kind of headaches could I have?
Try to purchase a property in Australia.
- I have found that getting a loan in Australia, while I'm employed/living in the UK results in less than favourable terms, e.g interest rates, total amount etc. I suspect this is due to the risk profile of me not working in the country.
- Trying to organise purchasing a property over there from here might be tricky to get right. I can fly back to finalise things but the majority of the leg work has to be done from here.
- I do have family who can assist with the management and possibly purchase. Although, I wouldn't want to defer responsibility on the purchasing aspect at least as it involves large amounts.
A side question: If I buy in a property in one country and use the first-home owner benefits then do I void the equivalent in the other country?
I can keep saving my money and transfer it over to Australia, as the exchange rate is quite good - almost double to the pound.
- I will continue to throw away more money to rent with this strategy.
I could just call it quits in the UK and head home early.
- I give up any getting British citizenship.
- From a career perspective it would be better to stick around for some more vital experience.
- I'm not quite ready to head home yet as I'm still loving life here.
Has anyone been in this position or have any experience I can draw on for some advice? I'm also looking for any recommendations of professionals I can seek out advice from on this matter.