QUESTION:
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My husband and I intend to move overseas permanently in approximately three-and-a-half years (to a country we have lived in previously).
We are in our mid-thirties and have recently both been promoted to new roles with a combined income of $170,000 exclusive of super. We have no debts, $20,000 in an investment account and $30,000 in a high-interest savings account.
We intend on saving all of the surplus funds from our new salaries before we move. We would like to know if we should look to buy a house here next year, live in it for three years then rent it for a couple of years while we settle overseas, then sell and buy in our new home country; or do something else with the funds in the meantime and buy our first home in the new country in about five years.
I understand the six-year main residence tax rule may mean the sale is free of CGT in Australia if we do the former.
ANSWER:
The home in Australia should be free of capital gains tax provided you return to it or sell it within six years of moving out.