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What Will You If Big Qe Or Nirp Arrives?

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Negative interest rates affect the relationship between a banks and central banks or between commercial banks.

I find it unlikely that negative interest rates would be introduced for consumer deposits. I think that accounts would just go premium in the sense that you have to pay to use the bank deposit facility. This is common outside the UK. Crazy really considering you are doing the bank a favour by giving it your money and being at risk of a bail in.

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keep investing in a 'permanent portfolio' and hope for the best. The market outside of commuteable distance from London has effectively flat-lined, the recent uptick in prices due to the help to buy scheme has worked through the system and prices are resuming their flat-line from about 2004 prices.

all the props are just props. even negative interest rates and more QE will only just about hold things stable. Only they will be deployed during the start of the next recession starting as we type.

for the next period in history all you can do is improve your skills and avoid financial commitments. some huge forces acting on house prices in both directions, personally I think we will get much cheaper houses in this new recession. But if we don't may be waiting but eventually politically high prices will change.

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If the BoE announces further QE or cuts rates, what will you do?

Keep doing exactly what I'm already doing. Graft up, save 55% of gross earnings for a few more months, invest it in a low cost tax efficient balanced portfolio, then FIRE, move to The Med to secure a home for my family and live happily ever after on the dividends.

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Keep saving.

Be on HPC reading portfolio landlords stoke it up from upon high.

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Is this politically sustainable.

I mean, home owners living virtually for 'free' but thanks to nirp, sitting on a nicely inflating asset to add to the natural 'economic rent capture'

Meanwhile savers, along with renters continue to pay.

None of the benefits of zirp were passed on in rents, indeed rents continued to rise, though not entirely in line with asset inflation.

Could be a defining pitchfork moment.

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all the people wanting to move to Spain, you maybe best wait till after the euro exit.

I've decided to not let politicians and market manipulators drive my life. I now make decisions based on what the situation is currently presenting as the best opportunity for my family. Right now that is to leave this once great country as soon as possible. If we have a HPC (and some other things change which I won't go into) then we may be better here however I'm not planning on it as I only have about 18 months to FIRE if Mr Market performs to average from here. Life really is to short.

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But wouldn't that mean you'd have to put your money where your mouth is?

Yep, and I fully intend to. My only problem is which one as a few countries look good at this stage. At this point Malta is the front runner however I may have to change that view if the 118 crowd turn up as tax exiles...

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Yep, and I fully intend to. My only problem is which one as a few countries look good at this stage. At this point Malta is the front runner however I may have to change that view if the 118 crowd turn up as tax exiles...

I have only been to Malta once. It isn't for me because I like cycling and I would get bored of doing the same few routes over and over and over.

Would you settle fully in one country? Or look to split between two for summer / winter?

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I have only been to Malta once. It isn't for me because I like cycling and I would get bored of doing the same few routes over and over and over.

Would you settle fully in one country? Or look to split between two for summer / winter?

I also like cycling and agree that is a bit limited. I'll be able to substitute what is lost there with sea kayaking though.

Aim is to settle in one country. Might take a couple before we settle on the right one though. Have tried to minimise that by spending time in the preferred locations during summer, winter and in between. Have done all 3 with Malta thus far and we still like what we see.

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I went to Malta once, well Gozo

worst holiday ever - constant church bells at random times but roughly every 20 minutes all night, every day

Also the night temperatures were uncomfortably high for me

It was a beautiful place but I'm never going back.

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Yep, and I fully intend to. My only problem is which one as a few countries look good at this stage. At this point Malta is the front runner however I may have to change that view if the 118 crowd turn up as tax exiles...

:lol:

I was about to warn you of that.

Strange.. we've got HPCers planning to escape UK out of fear of HPI+++.

And BTLers planning to escape UK, because they've got themselves into a situation where they're going to get soaked in taxes and CGT, and lobbying by warning of massive HPC.

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I went to Malta once, well Gozo

worst holiday ever - constant church bells at random times but roughly every 20 minutes all night, every day

Also the night temperatures were uncomfortably high for me

It was a beautiful place but I'm never going back.

Agree with you on the church bells. The shooting of birds is IMHO also noisy, dangerous and inappropriate. Plenty of other negatives as well. Even with those though we still love the place.

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Forced to become a tax exile?

Mark Alexander - Property118 says:

14/08/2015 at 23:40

I told you my wife and I were serious, anybody want to buy our house? It’s on the market – see >>> http://www.rightmove.co.uk/property-for-sale/property-54102203.html

Nice little tax haven in the Med to look forward to and who knows from there when the property portfolio is sold CGT free?

I’m looking forward to being completely debt free and being able to focus on Property118 and my consultancy work. All I really need is decent internet, but I’m sure that supping cocktails in a nice infinity pool overlooking Melia Bay will grow on us eventually too.

I’m quite sure that whatever happens in the UK there will always be landlords, and for as there is, Property118 will facilitate the sharing of best practice amongst landlords who are ready, willing and able to help each other.

Happy days ahead

-----

Trendo says: Read about me on my member profile

15/08/2015 at 00:13

Reply to the comment left by “Mark Alexander” at “14/08/2015 – 23:40“:

Mellieha Bay Malta Mark ?

-----

Mark Alexander - Property118 says:

Yes

------

Mark Alexander - Property118 says:

18/09/2015 at 07:52

Reply to the comment left by “Dr Monty Drawbridge ” at “17/09/2015 – 23:45“:

It’s not as easy as you might think to establish residency in another Country. Living elsewhere and being resident are two different things. For example, in Malta I need to pay a tax bond to the government and prove that I’m spending a certain amount on a property. There are other rules too such as having to buy £500k minimum of worldwide health cover, NOT travel insurance.

http://www.property118.com/forced-to-become-a-tax-exile/77412/comment-page-21/#comment-64761

------

Other 118ers

Malta: small island, ‘dust bowl’ feel, nice people

Jerry Jones - Bear Properties says:

15/08/2015 at 08:29

Are you already familiar with Malta? It’s a lovely country that I have been visiting on and off for over 30 years. Mellieha Bay is very pleasant but that whole stretch of coast from Valletta up to the Gozo ferry is a bit over developed these days in my opinion. In your position I’d take a look at the south of the island around Marsaxlokk, or even Gozo, for a more tranquil and traditional Maltese atmosphere.

Anyway, good luck with your move and I wish you both every happiness in Malta. We may even cross paths as I expect to be visiting on the boat I am currently in the throes of buying.

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:lol:

I was about to warn you of that.

Strange.. we've got HPCers planning to escape UK out of fear of HPI+++.

And BTLers planning to escape UK, because they've got themselves into a situation where they're going to get soaked in taxes and CGT, and lobbying by warning of massive HPC.

I agree it's a ridiculous scenario but in a strange way I'm sort of glad that I couldn't afford to mortgage myself to the hilt in 2007. It made me think very carefully about what was actually important in life and then how I could best achieve it. Plan A was always the nice home in the UK which is the accepted way in life. Plan B was creative, very different to the many but is working out pretty well TBH. Even if we had HPC tomorrow I'd probably not take Plan A any more - Plan B looks far more interesting and beneficial.

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Forced to become a tax exile?

Mark Alexander - Property118 says:

14/08/2015 at 23:40

I told you my wife and I were serious, anybody want to buy our house? It’s on the market – see >>> http://www.rightmove.co.uk/property-for-sale/property-54102203.html

Nice little tax haven in the Med to look forward to and who knows from there when the property portfolio is sold CGT free?

I’m looking forward to being completely debt free and being able to focus on Property118 and my consultancy work. All I really need is decent internet, but I’m sure that supping cocktails in a nice infinity pool overlooking Melia Bay will grow on us eventually too.

I’m quite sure that whatever happens in the UK there will always be landlords, and for as there is, Property118 will facilitate the sharing of best practice amongst landlords who are ready, willing and able to help each other.

Happy days ahead

-----

Trendo says: Read about me on my member profile

15/08/2015 at 00:13

Reply to the comment left by “Mark Alexander” at “14/08/2015 – 23:40“:

Mellieha Bay Malta Mark ?

-----

Mark Alexander - Property118 says:

Yes

------

Mark Alexander - Property118 says:

18/09/2015 at 07:52

Reply to the comment left by “Dr Monty Drawbridge ” at “17/09/2015 – 23:45“:

It’s not as easy as you might think to establish residency in another Country. Living elsewhere and being resident are two different things. For example, in Malta I need to pay a tax bond to the government and prove that I’m spending a certain amount on a property. There are other rules too such as having to buy £500k minimum of worldwide health cover, NOT travel insurance.

http://www.property118.com/forced-to-become-a-tax-exile/77412/comment-page-21/#comment-64761

------

Other 118ers

Malta: small island, ‘dust bowl’ feel, nice people

Jerry Jones - Bear Properties says:

15/08/2015 at 08:29

Are you already familiar with Malta? It’s a lovely country that I have been visiting on and off for over 30 years. Mellieha Bay is very pleasant but that whole stretch of coast from Valletta up to the Gozo ferry is a bit over developed these days in my opinion. In your position I’d take a look at the south of the island around Marsaxlokk, or even Gozo, for a more tranquil and traditional Maltese atmosphere.

Anyway, good luck with your move and I wish you both every happiness in Malta. We may even cross paths as I expect to be visiting on the boat I am currently in the throes of buying.

"It’s not as easy as you might think to establish residency in another Country. Living elsewhere and being resident are two different things. For example, in Malta I need to pay a tax bond to the government and prove that I’m spending a certain amount on a property. There are other rules too such as having to buy £500k minimum of worldwide health cover, NOT travel insurance."

The guy is an absolute idiot assuming he has an EU passport. How many errors can one person make in 3 lines of text. It's trivial to become a resident of Malta - go and live there legally for 6 months. I think he's referring to domicile which is of course much harder to change. Don't know why as an EU citizen he's going to pay a tax bond and spend a big wodge on property - to impress his mates maybe? Why he's buying £500k of health cover is also beyond me. I'm just going to turn up and fill in a few forms that cost nothing including registering as self employed (the method to get into the system if you're not of pensionable age and living off investments). Then I'll start paying SSC contributions (and tax) which will give me health care and the equivalent of NI credits for a Maltese 2/3's pension.

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I agree it's a ridiculous scenario but in a strange way I'm sort of glad that I couldn't afford to mortgage myself to the hilt in 2007. It made me think very carefully about what was actually important in life and then how I could best achieve it. Plan A was always the nice home in the UK which is the accepted way in life. Plan B was creative, very different to the many but is working out pretty well TBH. Even if we had HPC tomorrow I'd probably not take Plan A any more - Plan B looks far more interesting and beneficial.

Best of luck - can thoroughly recommend plan B. We left for France in 2012 after it became clear that UK economics were only going to get worse. I struggle to correlate the standard of living we had in the UK, on much higher salaries, with that which we enjoy now. Better to simply try out a place rather than pre-judge destinations based on English-language media coverage. We love the very regimented French way of life but can understand why some would not. The value of learning another language and culture (with all of the new literature, music and art that goes with that) cannot be overstated.

Edited by Cozza

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