What to do with house sale money whilst renting/emigrating?
Discussion
Hi All,
I’m trying to work out what is the best cause of action in this scenario.
Very possibly moving to Australia for at least 2 years. I’ll be selling my house here in the UK, which will leave me around 500k. I’ll use 100k for moving, renting, cars etc whilst I move and setup.
What is the best way of storing/investing that 400k. I looked at the Investec 6% saving account mentioned the other day which you can have up to 250k in, but then you’re only covered up to £85,000, which is a worry to me. I also do not know if I can keep an Investec uk account whilst living in Australia and having no UK address.
Has anyone been in this situation or have any possible ideas what’s best to do. I will be renting in Aus for the first 12 months at an absolute minimum, potentially if I decide to live there, of course I will use the money for a deposit. Just unsure where to store the money and it be safe for the next 18-24 months, with the best case it earning some good interest. I will not need access to the money as I will have an income.
Suggestions?
I’m trying to work out what is the best cause of action in this scenario.
Very possibly moving to Australia for at least 2 years. I’ll be selling my house here in the UK, which will leave me around 500k. I’ll use 100k for moving, renting, cars etc whilst I move and setup.
What is the best way of storing/investing that 400k. I looked at the Investec 6% saving account mentioned the other day which you can have up to 250k in, but then you’re only covered up to £85,000, which is a worry to me. I also do not know if I can keep an Investec uk account whilst living in Australia and having no UK address.
Has anyone been in this situation or have any possible ideas what’s best to do. I will be renting in Aus for the first 12 months at an absolute minimum, potentially if I decide to live there, of course I will use the money for a deposit. Just unsure where to store the money and it be safe for the next 18-24 months, with the best case it earning some good interest. I will not need access to the money as I will have an income.
Suggestions?
Thanks both, agree with the suggestions and the likely route. Would I have any issues with Uk Isa/premium bonds/saving accounts when I have no Uk address and am an Australian resident for the foreseeable?
I’ve read that Barclays this year have closed down current accounts of people who have emigrated/are no longer Uk residents.
I’ve read that Barclays this year have closed down current accounts of people who have emigrated/are no longer Uk residents.
Years ago, 2012 ish I had an Australian colleague who was moving back to oz from Uk. She had purposefully bought a decent merc £15k worth which was a lot to me in those days.
Apparently if she owned it x years she could import it to Australia and it be exempt of high import duties. She explains it would be worth more than double at that time once onshore.
I wonder if similar is true now? Maybe store your wealth in a sports car incase you stay there. DYOR.
Apparently if she owned it x years she could import it to Australia and it be exempt of high import duties. She explains it would be worth more than double at that time once onshore.
I wonder if similar is true now? Maybe store your wealth in a sports car incase you stay there. DYOR.
IMO a Liquidity fund is a good viable solution, as it’s a security it is ringfenced as a client asset. You need a brokerage account to hold it. Should be able to achieve c.4.7% gross. Daily liquidity, and rate will increase as BOE base rate increases although not linear.
If tax is an issue, perhaps a low coupon UK gilt, which are more tax efficient, but capital value more of a challenge unless held to maturity.
If tax is an issue, perhaps a low coupon UK gilt, which are more tax efficient, but capital value more of a challenge unless held to maturity.
Edited by Mankers on Monday 10th July 21:53
Mankers said:
IMO a Liquidity fund is a good viable solution, as it’s a security it is ringfenced as a client asset. You need a brokerage account to hold it. Should be able to achieve c.4.7% gross. Daily liquidity, and rate will increase as BOE base rate increases although not linear.
If tax is an issue, perhaps a low coupon UK gilt, which are more tax efficient, but capital value more of a challenge unless held to maturity.
Why would tax be an issue? (Genuine question, thanks for the advice)If tax is an issue, perhaps a low coupon UK gilt, which are more tax efficient, but capital value more of a challenge unless held to maturity.
Edited by Mankers on Monday 10th July 21:53
Bumping this for some advise on the 6% fixed 12 month saving accounts.
Could I sign up with Investec, Atom, FirstSave etc, have 5 saving accounts, all have 85k in and be covered on all 5? Is the 85k covered per account or per person?
That would potentially be 25.5k at the end of the 12 months, risk free, unless I’m mistaken?
Could I sign up with Investec, Atom, FirstSave etc, have 5 saving accounts, all have 85k in and be covered on all 5? Is the 85k covered per account or per person?
That would potentially be 25.5k at the end of the 12 months, risk free, unless I’m mistaken?
Seventyseven7 said:
Bumping this for some advise on the 6% fixed 12 month saving accounts.
Could I sign up with Investec, Atom, FirstSave etc, have 5 saving accounts, all have 85k in and be covered on all 5? Is the 85k covered per account or per person?
That would potentially be 25.5k at the end of the 12 months, risk free, unless I’m mistaken?
The cover is technically per banking license, jumping to £170,000 for a joint account. Could I sign up with Investec, Atom, FirstSave etc, have 5 saving accounts, all have 85k in and be covered on all 5? Is the 85k covered per account or per person?
That would potentially be 25.5k at the end of the 12 months, risk free, unless I’m mistaken?
For (almost) all intents and purposes, this is per bank - but its worth double checking. As an example, the Marcus product offered by Goldman Sachs is under the same license as the main GS entity, so your £85k would be shared over both.
This isn't particularly up to date, but give you an idea https://www.bankofengland.co.uk/-/media/boe/files/...
There is also a temporary upper limit of £1m for 6 months, for specific events such as selling a house - but you would need to jump through more hoops to get your money back - and may take a few months - whereas the £85k limit is intended to make the funds available to you again much more quickly.
daos said:
Why don’t you keep your house and rent it out, then it’s always there if you decide to move back. 100k budget to move out to Oz seems a touch excessive.
Did think about this, but decided it’s too much hassle. If things go wrong, being the other side of the world won’t be helpful. Having rented out my house in Scotland whilst living in Sydney, I’d agree it’s hassle I’d never repeat again in my life - the time zones make sorting out UK issues a real hassle
I was also having a think about your moving budget, then concluded 100k wasn’t as bonkers as I first thought
My high-quality relocation package was priced circa 35k back in 2016 when we moved home to UK (fixed cost, I let the company handle it). 13 months rent in a decent Sydney pad is circa $5K AUD/month. Add a car and all the other gubbins and yes, it’s a lot of immediate spend!
No tips on the money I’m afraid but I do know investec have a Sydney office, as do most of the major financials. One thing I wish we had done was sort our proper international accounts before leaving as it’s easier to do from your home country
I was also having a think about your moving budget, then concluded 100k wasn’t as bonkers as I first thought
My high-quality relocation package was priced circa 35k back in 2016 when we moved home to UK (fixed cost, I let the company handle it). 13 months rent in a decent Sydney pad is circa $5K AUD/month. Add a car and all the other gubbins and yes, it’s a lot of immediate spend!
No tips on the money I’m afraid but I do know investec have a Sydney office, as do most of the major financials. One thing I wish we had done was sort our proper international accounts before leaving as it’s easier to do from your home country
I’m in the same boat with about the same amount of money- thinking of going to Thailand.
I have opened four 1yr fixed accounts at around 5.9% giving around £400 paid monthly putting £84580 in each, so if they do go bump I will get my interest.
The rest I’ve put in an easy access saver at 4.3% .
I’m retired at 53, my wife at 48 so we don’t have any worries over tax.
Have a look at Martin Lewis and make sure it’s FSCS protected.
I have opened four 1yr fixed accounts at around 5.9% giving around £400 paid monthly putting £84580 in each, so if they do go bump I will get my interest.
The rest I’ve put in an easy access saver at 4.3% .
I’m retired at 53, my wife at 48 so we don’t have any worries over tax.
Have a look at Martin Lewis and make sure it’s FSCS protected.
This tool on Money Saving expert will allow you to check if an FSCS licence is shared with another bank:
https://www.moneysavingexpert.com/savings/safe-sav...
£1000 for 20%
£500 for 40%
£0 for 45%
Explained here:
https://www.moneysavingexpert.com/savings/personal...
https://www.moneysavingexpert.com/savings/safe-sav...
Seventyseven7 said:
Why would tax be an issue? (Genuine question, thanks for the advice)
While you might get £25k in interest, across multiple fixed savings accounts, this will be subject to tax depending on your tax rate. The tax free amount of interest you can receive as below. The amount above these thresholds will be subject to tax:£1000 for 20%
£500 for 40%
£0 for 45%
Explained here:
https://www.moneysavingexpert.com/savings/personal...
Seventyseven7 said:
daos said:
Why don’t you keep your house and rent it out, then it’s always there if you decide to move back. 100k budget to move out to Oz seems a touch excessive.
Did think about this, but decided it’s too much hassle. If things go wrong, being the other side of the world won’t be helpful. I guess it depends on your property and whether you foresee lots of issues. It is currently a good time to rent and not so much to sell.
Selling a house is not a stress free experience, it might take you months to sell, buyers can drop out, the list goes on. Are you moving to a city or the bush? If it’s the former you shouldn’t need a car straight away.
Whatever you decide all the best with the move I really enjoyed my time in Oz.
OldSkoolRS said:
This tool on Money Saving expert will allow you to check if an FSCS licence is shared with another bank:
https://www.moneysavingexpert.com/savings/safe-sav...
£1000 for 20%
£500 for 40%
£0 for 45%
Explained here:
https://www.moneysavingexpert.com/savings/personal...
As we will be living in Australia and paying local tax on our income there, I assume I would still have a CGT allowance in the UK, and this x2......and as I'm writing this I've just remember that has reduced this year for 6k. https://www.moneysavingexpert.com/savings/safe-sav...
Seventyseven7 said:
Why would tax be an issue? (Genuine question, thanks for the advice)
While you might get £25k in interest, across multiple fixed savings accounts, this will be subject to tax depending on your tax rate. The tax free amount of interest you can receive as below. The amount above these thresholds will be subject to tax:£1000 for 20%
£500 for 40%
£0 for 45%
Explained here:
https://www.moneysavingexpert.com/savings/personal...
Seventyseven7 said:
As we will be living in Australia and paying local tax on our income there, I assume I would still have a CGT allowance in the UK, and this x2......and as I'm writing this I've just remember that has reduced this year for 6k.
I'm presuming CGT is capital gains tax? I'm not sure if this applies to interest on savings? However, if you aren't paying tax in the UK then you might be able to benefit from the starter savings rate* which is also £6,000 a year (each). However, it might be more difficult opening the savings accounts if you have to tick the box that says you aren't a UK tax payer, so that might be moot.* https://www.gov.uk/apply-tax-free-interest-on-savi...
Maybe look into what the tax rules are for savings in Australia and see if that works in your favour (no idea what savings rates are down there though)?
There is an investment company that will invest your money for you in multiple banks, saves you the hassle of opening lots of accounts. Somebody here will know the name, and they make sure you are within the FCSA limits.
I am in a similar position, maxed out the ISAs and just use Moneysavingexpert to pinpoint the best returns. Trying not to tie anything up for a year until rates have maxed out, if I an work out when that is. I did 2 fixed interest rate 1 year accounts, and of course rates have gone up massively. Recently been taking the highest paying 90 day accounts and serving interest straight away.
I am in a similar position, maxed out the ISAs and just use Moneysavingexpert to pinpoint the best returns. Trying not to tie anything up for a year until rates have maxed out, if I an work out when that is. I did 2 fixed interest rate 1 year accounts, and of course rates have gone up massively. Recently been taking the highest paying 90 day accounts and serving interest straight away.
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