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About Phillipe

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  1. Phillipe

    Iom Property

    The Tax Justice UK blog has links to a study about prospects for small island tax havens. It backs up Deadlegs predictions. The paper’s conclusions do not make for happy reading for small island tax havens. Their options for diversification are restricted by past decisions, and attempts to diversify face major structural barriers, including the high cost bases of their local economies and the lack of local skills base outside the finance sector: Some tax haven islands, like Jersey and the IOM, are already facing unprecedented budgetary pressures. But they have limited scope for reducing their dependence on offshore financial services. Witt a disproportionate percenage of their economically active population directly employed in the OFC, and the majority of the remaining workforce employed in secondary sectors like construction, distributive trades and catering, there is virtually no alternative skills base on which new industries can draw. This path dependence has been reinforced by the extraordinary high costs of land and labour, which have crowded-out pre-existing industries. Taking measures to diversify the local economy will therefore require politically unpalatable steps to significantly reduce the domestic cost base.
  2. "I think what you are describing is exacerbated massively by institutionalised abusive investment vehicles (such as real estate). " It's also massively exacerbated by the world's shadow economy i.e. the 200 plus secrecy jurisdictions (aka tax havens) where money is shifted around for the benefit of corporations who don't give a rat's ass about any country - including the ones they use as finance sectors. Richard Murphy's blog at www.taxresearch.org.uk/blog/ does an excellent job at analyzing macro-economic issues. Not anything you'd see reprinted in the Daily Mail though.
  3. Not everyone in the IOM is as complacent about the status quo as the residents posting to this thread. For a different point of view check out the online Manx Herald - www.manxherald.com. There are a number of people who don't work for the finance sector who struggle to buy a home at the current inflated prices - still buoyed by the presence of finance sector salaries and rich ex pat wealth. The truth about whether or not the island is well run is also not as clear cut as some posters would have you think. Check ou Richard Murphy's blog - www.taxresearchorg.uk/blog. He's a charted accountant who is also interested in social justice and has written extensively on the situation in the Channel Isalnds and the IOM. A recent article by him estimates that the UK massively subsidises the Isle of Man to the tune of at least £230 million a year and in total costs the UK not less than £1.5 billion a year.
  4. Phillipe

    Isle Of Man

    www.iomtoday.co.im/your-shout/economic problems
  5. Phillipe

    Isle Of Man

    Sorry about that - I messed up the link - it's: www.iomtoday.co.im/your-shout/economic-problems
  6. Phillipe

    Isle Of Man

    Obviously a struggle for people to live in such a high-priced area - it's residents are some of the most indebted in Britain.Shocking figures illustrate level of debt in Isle of Man CUT IT OUT: A total of 181 people who contacted the Isle of Man Office of Fair Trading owed about £20,000 each – mostly on store and credit cards and loans 29 January 2009 By JACKIE TURLEY MORE than £3.6 million was owed by debtors who contacted the Isle of Man Office of Fair Trading for advice last year. A total of 181 people owed about £20,000 each – mostly on store and credit cards and loans. And OFT staff are bracing themselves to deal with more problems as the credit crunch continues to bite, with the threat of redundancy and unemployment. Shocking figures reveal how the economic crisis is affecting people on an individual basis. A total of 50 people contacted the OFT for money advice from October to December 2008, 16 more than in the same period the previous year. The biggest trigger (45 per cent) was bad budgeting, with other factors including bereavement, divorce, gambling and illness. Of the people who contacted the OFT, there was an almost even split between men and women. Nearly a third of people were aged 31-40 and about 60 per cent had no children. Store and credit cards accounted for 45 per cent of debt, bank loans made up 20 per cent and 13 per cent was from personal loans.
  7. Phillipe

    Isle Of Man

    But obviously some concerns on resident's behalf about where their economy's heading. http://www.iomtoday.co.im/your-shout/Manx-companies http://www.iomtoday.co.im/your-shout/tax-increase
  8. Phillipe

    Isle Of Man

    pinbacker "The Manx housing market is very different to the UK housing market."Manx Property Market Considered Boyant More discussion on the IOM newspapers website today - a unique market definitely - also a mixed bag of comments in response to same article - some flat out cynical Manx property market described as 'buoyant' http://www.iomtoday.co.im/news
  9. Phillipe

    Isle Of Man

    'radders' " I am happy about phillipe's comments though." Not really my comments - straight from the IOM newspapers site. It does seem to be one of the last holdouts though. On Manx Radio today they had another piece re: continuing strong property market. "First rung even harder to reach" "14/01/2009 10:01:13 The increasing squeeze on first time property buyers has been spelled out by a leading Manx estate agent. Experts were asked to give presentations to the Junior Chamber of Commerce this week to talk about the state of the market in the Isle of Man. Lisa Quayle of Quayle’s Estate Agents said things had been difficult enough for first-time buyers in recent years. But she says the current economic downturn is making life even harder for those trying to get on the property ladder."
  10. Phillipe

    Isle Of Man

    I've been following the thread on Manx house prices with interest. Prices over there still seem to be bucking the trend. Does anyone have any insight on the latest upbeat report (prices up 4% last year) - is this just spin? or will the low tax rates keep attracting rich emigrants and fueling house price inflation? Phillipe. From the IOM newspaper site: Published Date: 02 January 2009 By ADRIAN DARBYSHIRE HOUSE prices in the Island rose by 4 per cent over the year – but property transactions fell by a third. The impact of the credit crunch on the Manx housing market became clear as leading estate agent Chrystals published its review of 2008. In a turbulent year for the global economy, property values in the UK have plunged. While the Island economy is not immune to the credit crunch and recession elsewhere, Chrystals says that prices in the residential market have seen stability, increasing by about 4 per cent over the year from an average of £281,000 to £292,000. If the flats market is included, the all-property average would run at £281,000 – no change year on year. Chrystals office manager Neil Taggart said: '2008 has been an unprecedented year for the global economy with speculation and uncertainty casting a cloud of caution over all business. It has been impossible to get away from talk of credit crunch, sub-prime collapse and economic chaos. 'Our average house price statistics should be observed in a positive manner for the Manx economy when compared with UK statistical surveys published by the Nationwide Building Society (down 13.9 per cent to £158,442) and Halifax (down 14.9 per cent to £163,605). The UK Land Registry reported its average recorded house price decreasing by 10.1 per cent this year.' Chrystals' sales statistics indicate that detached family houses (up 3 per cent), detached bungalows (up 7 per cent), semi-detached houses (up 1.8 per cent) and terraced houses (up 3.5 per cent) have seen 'modest but sustained price increases'. Year-on-year sales saw the market for flats drop back considerably and prices fell. 'We consider that a lack of stock in the mid/upper price range has contributed greatly to this statistic. We are pleased to observe that the Department of Local Government and the Environment first-time buyer initiative has successfully allowed many to take the first step onto the property ladder,' said Mr Taggart. But the number of transactions in all areas of the market slowed throughout the year. 'In some sectors transactions have fallen by as much as a third,' said Neil. 'This is of greatest concern moving into 2009. During December the Nationwide and Halifax both suspended their future predictions.' But Mr Taggart said Chrystals had seen 'strong and consistent' demand from 'high net worth' individuals throughout the year. The first quarter alone saw its offices securing property sales of £14m over five sales, including the highest value residential transaction by any agent. Mr Taggart said: 'Some cooling of interest has occurred with uncertainty over the duration of the UK recession but we have continued to negotiate several substantial sales for clients leading into 2009. We are optimistic that if government can maintain a dynamic tax strategy the Island will remain attractive in turbulent economic times.' He concluded: 'We are confident that the historic but sustainable growth in values has forged strong property foundations for the Island. 'We look forward to the emergence of a market in reasonable balance, where existing home-owners can rest assured that their property retains its value in real terms, while those seeking to enter or move up the market have a realistic chance to do so.
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