Forum Replies Created
GOSH!!!!!
I’m really surprised at the replies from everyone…
Turns out my gut said don’t go near and I didn’t attend the seminar this weekend!
Thank you for getting answers to me so quickly! Well done GANG
feastThanks for the added infoguys, however…
I’m not sure if I’m making myself clear regarding this idea. The information comes from the book “The Australian Expat – the Luckiest Person on Earth” written by Steve Douglas. Their website is http://www.smats.net and it is information from the Australia Taxation Office – completely legal and not a scam! It is available to anyone who is currently living overseas as an Aussie Expat and knows about it. It states…
“… The Power of Property – Negetive Gearing Expat Style… the deliberate use of borrowed funds to buy an asset where the income is not enough to cover the holding costs and interest, creating an annual deficit, or negative. It is done solely on the expectation of capital appreciation of the asset…(we know this…BUT) As an Expat, this annual defict has nothing to offset so simply accumulates each and every year you are away to be used at some future time…they go on indefinitely until such time as you need them to offset either future rental surplus, capital gains on sale or to offset Australian taxable income when you return to Australia…including salary or retirement incomes.” (Chapter 9)[dead2]
The only vested interest the accountants from this seminar have is actually doing our tax – having an Aussie accountant here works out quite well for us.. yeah? You can even claim travel expenses (flights home!) to check out your exisiting assets AND buy more! As long as we make sure we can afford the annual holding cost we can reap the rewards… keeping in mind the UK currency gives us the greatest buying power. Using OPM and leveraging (the effect of time and many properties) will assist in the purchase and provide a significant tax saving opportunity.
On the other hand…
the beauty about buying properties here (London) is the rent, being as high as it is(!), usually covers the mortgage, whereas in “common” residential Australian properties there’s no chance unless you are specifically searching for positive cash flow properties.Still looking at tax implications here regarding our return… I believe we’ll be taxed on any properties in UK on our return… ?
So now waddya think…?
[biggrin]feast
HI Derek,
Thanks for the info!
Actually, the seminar here was quite enlightning!
There was an Australian tax accountant and mortage broker present as well as UK financial and currency advisors.
The whole gist was…
Even as an expat we have to do a tax return every year. We are not earning a wage in Aust but we have a rental property there. Currently it is negetive gearing (slightly). The big question is…We have the funds now to change that or do we buy another property?The seminar people are saying it is better to buy properties while we are Expats and negetive gear them so as to incur as many losses as possible. These losses will then accrue over time and when/if we return we can choose how to use these losses. We can either use them on our own income tax or we can deduct it from our capital gains tax… if we decided to sell.
We may not have to pay tax in Aust for a looonnngggg time!
We are at a cross roads right now and having to make a few big decisions. Because we are earning the pound stirling (2.5 to the dollar) we are in a pretty good position right now.
I know “Rich Dad” thinks money IN rather than money OUT is important… but i’m now not sure which one to do? Both????
And.. then there’s always properties here as well!Never did we think we would be able to buy in London!
Feast
Hi Sharon,
I can highly recommend Japanese students to care for the environment in which they live!!! I have had experience with about 15 Japanese students who all (but 1) were clean, tidy and punctual with the rent and tying up bills at the end of the tenancy. (This is always the tricky bit as some leave in the middle of bills)
I tried different things to find the best way to do it. The best thing was to incorporate bills and rent and cleaning in the price which all worked like a charm!
You may want to consider a direct debit into your account for stress-free management.It’s a fantastic idea – rock’n’roll!
feast[ears]Me too! I wanna be a part of the Perth goss!
I was just talking last night about how the Swan Valley would be a great place to invest and thought we’d get some info ASAP. Pretty cool actually seings as though we live in London (Perth Originally!)
Friends have bought and sold in the area twice and made a nice profit in the upgrade. And other friends are building there as we speak. And… my brother-in-law was married there in January. We’ve only been there a couple of times, years ago… but can’t believe how much action there is now!
As far as public transport goes… does anyone actually use it in Perth?[tired]
Anyone got any good websites on property/developments in Swan Valley or Mandurah?
Feast
Hi Sharon,
Thanks for replying so quickly to our email. Have printed out the list of books to peruse… and we are absorbing them in no time at all!Does anyone have any good websites for property hunting that will help us in our search? Being in a different country is making it a challenge and we are pretty keen to buy in the next 6 months – unless someone recommends to stay put for a while – ie: interest rates??
Did we hear correctly that you can fix for less than the variable at the moment?Feast
