relax737
404 Titan, you sound like a very negative chappie; a refugee from the 89 thing perhaps?
No, I’m just shrewd with my money. I only had a PPL in 1989 so no wasn’t involved in the 1989 dispute. I didn’t say Australia wasn’t a great place to live. I spend half the year there after all. What s***s me though is the Australian taxation system and how it disadvantages those that work hard and make sacrifices all their life but openly supports those that have bludged all their life. While it may be getting better and certainly if you are a resident in Australia the super system is getting better it has no benefit at all as an expat. Infact it is penalising us.
Gnadenburg
It makes me shudder, poorly structured expats, who end up having to retire in developing Asian nations to beat the taxman.
You are shooting at the hip. Most expats that I know retire very comfortably in Australia. Like all aspects of society there will be some that make bad decisions just as there are those that live and work in Australia that make bad decisions. Asia is only one of the places I can live. I also have right of abode in Europe, USA and New Zealand. While most of Europe has a more socialistic welfare and taxation system than Australia, the US and believe it or not NZ don’t.
There are so many ways around it. But you need to pay for the expertise.
I do pay for very good financial advice and am more than qualified myself to make my own informed decisions being an accountant myself. Unfortunately Super in Australia has been the playing fields of politicians for many years. They have constantly changed the rules to the point that it is impossible to make any reasonably informed long-term decision as to how to invest in it. Governments will continue to come and go over the next 21 years before my retirement and they too, just as the sun rises in the east and sets in the west, will also change the rules to suit their political agenda. In that light I will continue to keep my Super (Provident Fund) off shore out of their reach.
You borrow 100% for a 500,000 AUD property ( easy abroad ). You rake up 30K tax credit annually- negative gearing, depreciation, visits home for inspection etc. Interest only strucuture on the loan, with the cashflow you would traditionally use to pay off the principal, freed up to put money in to the sharemarket. After a decade abroad, you have a 300K taxation credit, a share market portfolio that is not far from the original value of the property. The most basic of structures.
What do you base this on? Just to put you in the picture all the financial institutions here in Hong Kong require at least a 20 – 30% deposit on residential investment property in Australia. Secondly interest only loans are for fools, especially in a declining property market as most of Australia is at the moment. If I were to finance a property in Australia from Hong Kong and the property was to fall below about 20% equity the bank will call the loan. I will then have to find the money to restore that loan to at least 20% equity or sell the property at a loss. As for the rest of your figures, they are rubbery to say the least. They are as credible as some of the figures I have seen from the shonky financial advisers from Australia that ply their dishonest trade throughout Asia and the Middle East trying to suck in some poor expat into their shonky financial schemes.