Foreign Perspectives

Archive for the ‘Mortgages’ Category

We were sure that we had uploaded all of our documents back on April 14th, and in fact we had. What we hadn’t allowed for was that we’d scanned the passports as soon as they’d turned up years ago and in particular before we’d signed them. So June 9th, we got a request from the immigration people for ID documents with photos and signatures i.e. the signed passports. So the dreaded Further Consideration message appeared on the two citizenship applications.

We re-scanned the passports and uploaded them the same day for the two citizenship applications and my visa application and thought that had knocked us back somewhat. So, we were rather surprised to see the Approval of citizenship email from immigration yesterday. Only one of them thus far, but just under nine weeks from application is well before the mid-August date we’d been expecting.

It’s shaping up to be a busy month as Wendy’s British citizenship was approved at the start of June and she’s to go to her citizenship ceremony at the end of July. She’s not British until she goes to that as that’s the day they hand her the citizenship certificate which we can use to get her passport.

On other fronts, we’re working through our timeline with this edging into the period when we start sorting out the UK finances. Most people seem to get the urge to tidy up their UK finances by closing all/most of their UK bank accounts whilst we’re doing the opposite. For a start, chances are that you will still have some requirement for a UK bank account and you will have problems trying to open any after you leave. In principle, you could go with one but it’s always useful to have a backup. Our main ones will be HSBC and Nationwide which both let you retain your accounts after you’ve emigrated. In both cases, it’s useful to have both the current account and a savings account (not an ISA as you can’t pay into that after you leave). Lloyds and NatWest are also possible, but they may change you to their international account after you’ve left the UK. You’ll also want Wise which operates in Australia and can provide you with the Australian equivalent of a sort code and account number as well as the UK ones and let’s you transfer between pounds and Australian dollars fairly cheaply. Last, but not least, you’ll want a UK American Express card because having that at least six months before you leave will let you get an Australian one as soon as you turn up there and that’s the only Australian credit card you’re pretty much guaranteed to get at the start.

Next up should be the second son’s citizenship. We’d thought they would have turned up at the same time, but our eldest got his just before the immigration site shut down for its weekend maintenance so, all being well, the second son will get his during the coming week. I’m thinking that my visa might be approved during the week as we’d deliberately put all the applications in my account on the assumption that if the immigration person saw the others, they’d go ahead and approve them all.

I’ve started looking into the option of a Self Managed Super Fund (SMSF), the much more expensive Australian equivalent of a UK Self Invested Personal Pension (SIPP). And it is a lot more expensive: the £120/year that the SIPP costs will be more like A$4000 (£2000) a year for the SMSF. In fact, it’s so much more expensive and there are so many restrictions on transferring from the SIPP to the SMSF, that I’m going to need to do more complete calculations to see if it would be worth doing at all.

We’ve also continued to look at potential houses, though we definitely won’t be buying anything until I’ve got the visa and not until well into 2027 at the earliest anyway as there’s just too many things left to do on the timeline to move any earlier. Quite a nice range of houses fitting our criteria have come onto the market over the past few months. Surprisingly, some very strong candidates still haven’t sold after maybe four or five months.

Copyright © 2004-2014 by Foreign Perspectives. All rights reserved.

We’d quite a detailed timeline taking us right up to the point of clicking the submit button on the visa application. An

d, then we ran off the end of that and find ourselves with two blank months.

That’s not to say that we’ve nothing to do, just that we need to update our plan with all the kind of things that we need to do. Some are there in outline form, and others will need added.

Our initial investigation was how to get the dogs out there (Tasmania doesn’t seem to allow cats). There’s several specialist places that do it, most of which go from Heathrow which doesn’t suit us, and all of which finish up in Melbourne where they do all Australian quarantine (usually 10 days, but can be 30 days). Whoever has the dogs registered in their name is the person who needs to hand over the dogs to the transport company. Initial quote came out at £7000 for both dogs which isn’t that bad.

Next up is getting our stuff there. We’ll likely not be taking everything from our existing house, but thinking that a 20 foot container is the way to go and that seems to be about £10,000 or so, though we’ll be needing more detail on the quote as we want it packed on this end and stored over there ’til we have our house organised.

Very early days, but step one is to get the plan fleshed out a lot more.

Copyright © 2004-2014 by Foreign Perspectives. All rights reserved.

This recession is turning into a much longer and deeper one than anyone expected which is becoming more visible to a wider range of people as time goes on.

Individual house sales are a fairly rare event for most people so we’re still seeing people putting houses on the market at prices based on a purchase price from a few years ago which, in many cases, was a higher price than the current market will support. That houses won’t sell at these prices is obvious but in many cases the owners simply can’t afford to sell them at the current prices so they add to the collection of “for sale” signs which in turn make things seem a little bit worse as their numbers build. As an example of how far away from the current prices these can be take the example of a house a few hundred yards from me which was bought at the peak of the market at around £300,000 whereas identical houses are now selling (slowly) for around £170,000. Had those people bought on an 80% mortgage they’d need house prices to rise another 40% from their current level just to cover the mortgage.

However, even when houses are priced at an appropriate level that still doesn’t mean that they’ll sell quickly as once a buyer is found and the house is taken off the market it’s quite likely to get the “for sale” sign back as buyers frequently can’t get mortgages: in one local case it took three buyers before reaching one who could get a mortgage.

Sadly all this means that people will be stuck in their houses potentially for decades if they can’t simply write off what could be a substantial loss.Copyright © 2004-2014 by Foreign Perspectives. All rights reserved.

With the credit squeeze still upon us, it shouldn’t be a great surprise to learn that many parents are still tapping the Bank of Mum & Dad even as adults.

The research commissioned by Scottish Widows indicates that over a third of parents have had to tap into their retirement savings to fund these requests from their children. That’s a scary thought as it implies that those parents may well need to call in that loan at some point if/when they run out of money for their own retirement and I’m sure it’s not something that the “kids” have considered.

It’s not peanuts either as the research indicates that the amount involved is well over £60 BILLION.

Now, it’s probably fine for the 30% who were asking for money to fund the deposit on a house in that they’ve actually got something “in the bank” so to speak but over 40% were asking for the money to repay debt and that’s money that’s quite simply gone. Quite what those “children” are going to do when their parents come to them asking for the money back so that they can retire in the manner in which they’d planned to is a very good question. One suspects that they’ll end up needing to consider secured loans on the parental home at some point.Copyright © 2004-2014 by Foreign Perspectives. All rights reserved.

Rental prices tend to lag the corresponding rises in house prices, essentially because rental contracts are generally 6 to 12 months in duration.

With the incredibly strong rise in house prices in Northern Ireland over the last year to 18 months it could only be expected that the rents being asked for would make a move after the customary time lag. Now, the house prices have levelled off at the moment but that’s not stopped the rents starting to shift upwards.

For example, in one estate which we have a vested interest in, a typical house was £130k in September 2006 vs £225k now. The increase in rents being asked is also heading upwards over that time from a typical £425 last year to £495 now. So far that’s only a 16% rental increase compared to the 73% price rise but I suspect that it’s merely a taster of things to come from the landlords as they test the water for reactions to that rise. Certainly if the prices of the houses resume their progress upwards I would be surprised if there wasn’t a certain amount of catching up happening this time next year with the rents.Copyright © 2004-2014 by Foreign Perspectives. All rights reserved.