Jump to content
House Price Crash Forum

Society of fools

New Members
  • Posts

    235
  • Joined

  • Last visited

About Society of fools

  • Rank
    Newbie
    Newbie

Recent Profile Visitors

The recent visitors block is disabled and is not being shown to other users.

  1. Yup. Basically you have to relinquish your US citizenship in order to cease paying US taxes. Even this is a difficult and protracted process, and hugely unfair to many people who never asked for their American citizenship in the first place. Back in the sixties and seventies, it was common for either Americans or Canadians to use a hospital to give birth on the other side of the border if the maternity hospitals on their side were packed. So many Canadians were born on the US side of the fence, which meant they were automatically US citizens, a development in which they had no choice and which back then meant almost nothing. I even heard of a French woman who had never been to the US somehow picking up US citizenship through her American parents, who had moved to France. She only found out about it when the US embassy in Paris contacted her about it when her parents died and she had to do some tax work connected to her inheritance. But the waiting time for relinquishing US citizenship is long. I heard that in Ottawa its now more than 15 months before your appointment with the US consul to lose it can be executed.
  2. Nope Shlomo, you lose tax residency if you leave your country and move elsewhere on a more or less permanent basis. You are then liable for taxes in the original country only on income or capital gains ( sometimes) that you make in that original country, not on anything you make outside it. Each country assesses tax residency differently and Australia for the last 80 + years has had one of the harshest regimes, because they don't look simply at what your ties are to Australia, but also what your ties are to the other country you claim to be living in. In recent years this has meant that a very aggressive ATO has been auditing expatriates who in several cases have lived overseas for a decade, and then claiming that they are in fact Australian tax residents and need to pay back taxes on everything they have earned in places like the Emirates, Hong Kong etc, where income tax is either zero or very low. This idiocy culminated in a recent case named Harding, where Harding, an Aussie who lived in Bahrain for 6 years, had a habit of changing his (rented) apartments in Manama every two years or so. The ATO picked up on this, and claimed that this was an indication of a "merely temporary or transient connection to Bahrain", therefore he retained his connections to Australia, and therefore he should be paying Aussie Tax on his tax free Middle Eastern Salary. Incredibly, the ATO took Harding through multiple judgements and appeals all the way to the Australian High Court, which threw the case out at the end of 2019. I guess after that the Australian government finally decided to change the law to something more modern, but as a I said, even the proposed new law is one of the harshest tax residency regimes in the world outside of the USA.
  3. Watch out for Rishi's next clever idea on HPC. The thread will be called " What other props can the government possibly implement even if house prices start dropping apparently irreversibly ? What could possibly save the Housing situation even if there were sky high interest rates, a falling currency, and people leaving Britain ? " The best ideas will be put to cabinet and implemented forthwith.
  4. I don't post on HPC very often, but I have to say, as a morale booster, this thread is definitely one of the best one's going, and always improves my mood. Nothing like living proof that property investment is not always a one-way bet, even if some of the discounted prices are themselves utterly ridiculous.
  5. You're welcome. You ever heard of a guy named Andrew Henderson ? Talkative yank who wrote a book called " Nomad Capitalist" urging Westerners ( mostly) to decamp their ever more intrusive and heavily taxing regimes in favour of moving nomadically over the course of a year between places like Montenegro, Turkey, Malaysia and Mexico. Buying a home in each place ( where real estate is pretty cheap incidentally) and following the seasons. I would expect that as the UK, USA, Australia, Canada, France, Germany etc start taxing their citizens ever more, this approach will become ever more popular amongst those people who have balls, brains, a certain amount of cash and a sense of adventure. Australians, though, would probably fight the concept on the basis that there is no place like home.....
  6. I might add that the Australian government doesn't seem to give a flying f*ck how its legislation affects expatriates. Its become a very insular country. Just look at the passport ownership figures. In the 80's and 90's, close to 90% of Australians had passports. Its now down to 57%. And considering a lot of that 57% only use their passports to go to Bali and New Zealand, the proportion of Australians who actually do real international travel is now lower than it has been for decades. An interesting phenomenon that as globalization has gripped the world, Australia has become a much more insular and parochial place.....
  7. Nope that rumour is not well founded. In fact only this past May Australia announced in its annual budget that it would reorganize its tax residency regulation, which is long overdue as the legislation governing this aspect of Aussie taxation life has been largely unchanged since the 1930's. The new proposed framework will have a "bright-line" days test to make somewhat of an objective criteria to ascertain who will be liable to Australian taxes. The days test is much harsher than the UK's tax residency regime though, and basically means that any Australian citizen who has an Australian bank account and spends 45 days or more in Australia in any year will be liable for Australian taxes on their global income. Considering that Australia at present imposes a 14 day quarantine on any incomers this is pretty harsh. You're left with 31 days if you do a single trip to the country in a year. And two trips under the present regime ? Forget it. There is another aspect of the proposed new legislation that appears pretty harsh, and that is that any Aussie who goes overseas to work in a country which does not have a double tax treaty with Australia, for example Hong Kong, or the United Arab Emirates, or Qatar, will retain their Australian tax residency for 3 whole years. ( I think Holland has a similar scheme) There is a get out clause but from brief reading it also seems pretty harsh, as in you have to organize yourself long term employment contracts ( over 2 years) and also long term accomodation in the place of work etc. Neither of those may be easy to organize in some parts of the world. So yeah, the new legislation needs some tweaking before it would appear to be competitive.
  8. Appreciate the tip. Truth is I am so disgusted at the real estate bubbles blown up in half a dozen locations around the (mostly English speaking) world and the constant lies and deception from TPTB that supports them that there is a vast psychological distance between my contemplating a real estate purchase and actually doing it. I actually have a fair bit of Gold, the real metal ( don't trust ETFs) but the fact that it is presently soaring is making me more nervous than just about any other financial development out there. Gold only soars rapidly when there is something seriously wrong with the foundations of the global economy.
  9. The exact same thought has occurred to me. I have several hundred thousand pounds in British banks. And my wife also has substantial cash savings in the UK. We are now seriously considering buying a property just to potentially cover our arses. But let's take this thinking one step further. If some of the banks collapse on a very large scale in the massive recession to come, how much will your property be valued at then ? You might have saved 60% of your cash value sitting on Real Estate, but its better to keep 100%. There has to be a better way to preserve wealth than taking a leap and buying a massively over-valued tangible asset.
  10. I do remember at the time of the Skripal poisoning there was a discussion on the BBC World Service where the BBC journalist was asking a City of London financial expert if there was any way that Russia could be "punished" for its egregious behaviour. The BBC journalist suggested that one way to get the message through to Moscow might be to prohibit Russians citizens or their connected corporations from buying British real estate. The instant, almost panicky rejoinder from the financial expert was to respond "That would be just cutting off our nose to spite our face". I laughed out loud.
  11. Unfortunately no. The British ruling class have developed the present social security system over a long period of time and have no wish for it to change. And brits themselves seem to prefer it, along with never-ending HPI. When I lived in France- about 15 years ago- there was a law that said that a French banker who approved a mortgage loan for more than a three times a French worker's salary could go to prison. I think a lot of British people would react to that sort of law with horror. How could house prices ever rise if that sort of legislation was in place ?
  12. Excellent observation. The difference between the French social security system and the British system is complete night and day. I worked professionally in France for some years before moving to the United Kingdom, and if I had wished- upon completing my four year contract there- I would have had close to 12 months of government payments in France at more than 75% of my previous executive salary. I thought it was a marvellous scheme not simply because it was so generous but also because it allows French workers who are being unfairly treated by their employers to tell their bosses to go ****** themselves. British workers are much more at the mercy of their employers, especially if they have heavy debts.
  13. There was an Australian Prime Minister named Paul Keating who reputedly said " If you're living in Australia and you're not in Sydney, you're camping". This is BS as concerns Australia, any one of the big five mainland capitals + the Gold Coast present an excellent lifestyle. However, in the case of Auckland compared to the rest of New Zealand it would actually be true. As for the rest, agree totally. 20% of the NZ economy is tourism, and that's going to be shredded for 2020 and probably a chunk of 2021 as well. Real estate prices are going to diiiiiiiiiive......??
  14. Hopefully nowhere near to Auckland. New Zealand has blown a property bubble in some parts of the country that is bigger than anything that could be found in Sydney, Melbourne, London, Oxford or Cambridge. A little of the froth has come off since Ardern banned foreigners from buying Kiwi real estate but it still has to come down a loooooooong way to be reasonable value.
  15. A hundred upvotes to your post Mr Dorkins. I think for many people HPI has become some sort of substitute life that compensates for all kinds of other inadequacies such as a lousy marriage, high blood sugar, social interactions that consist mainly of grunting to a neighbor and wondering how the ****** the family can ever move to another location for a better job. I've seen how people react to their house falling catastrophically in value before, back in Perth, in Western Australia about 10 years ago ( incidentally house prices in Perth have not yet recovered and are now falling even further) and it was like Margaret Mitchell described the southern plantation owners after the American Civil War. Their entire world had just fallen apart, so they were walking around like the ******ing living dead. ( Not her words of course)
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.