Overseas purchase

[Emo21]

I am looking into the purchase of a investment property overseas - Europe. And am wondering is it still tax like an investment property bought here in Australia including the purchase costs, the exchange rate costs.
Also if I have visited the country of purchase for a holiday and to view prospective houses can a portion of the trip be deducted for tax even if I don't purchase.

 

[HD_ACE]

I am looking into the purchase of a investment property overseas - Europe. And am wondering is it still tax like an investment property bought here in Australia including the purchase costs, the exchange rate costs.
Also if I have visited the country of purchase for a holiday and to view prospective houses can a portion of the trip be deducted for tax even if I don't purchase.

Nope you must already own property there. It may be able tobe added to thecost base for future cgt.
Also when you do own property and fly there, the main reason must be for the property and any personal time proportioned. So no holidays and then claming it as an expense.

Cheers

 

[geoffw]

I used to own a property in England- we initially lived in it, and let it out when we returned to Australia.

I was really disappointed with the standard of the property management. I didn't realise, not being able to see the property, just how little the property was being looked after. That led to it being much harder to let out, after a number of years with the same tenant.

Apparently that was the normal level of property management in England, which was less than what I had experienced as a tenant in Australia.

I'd suggest that it's much safer to stick to Australian property unless you have somebody on the ground who can steer you towards a really good property manager.

Also remember that exchange rates can go both ways. You can lose a substantial amount if that rate goes against you.