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laurejon

The Real Facts Of Life

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It appears the rule book has be rewritten, those of us who were brought up to respect Authority, respect your neighbours, and to work hard with an honest days work for an honest days pay are now the minority.

So the real facts of life need to be written, lest others follow our path.

1. Purchase a house during the bottom of a crash

2. Purchase as many houses as possible during the low and let some out.

3. Do not save any money.

4. Do not pay into a pension of any sort

5. Do not play by the rules

6. Do whatever it takes to keep on the top of the pile.

Provided you do the above, then at age 55 sell off all the property, and purchase property overseas with the proceeds. Let these properties out, but do not declare the income.

Get yourself into rented housing, preferably Council or Housing Association by the time you are 60.

Sign on and make it your job to research all the benefits available.

You should get a full state pension, rent paid, Council Tax paid, free transport, free NHS. And have a lovely tax free income from overseas each month.

Having any assets and working in the UK is now a serious liablity.

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TTRTR could do this now ....as his 8 terraced houses are in Wandsworth and he's a resident of Sweden.....

How would the Swedish tax authorities know he had property in the UK or any other foreign country?...and he could avoid British tax by saying he was a non-resident in the UK

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TTRTR could do this now ....as his 8 terraced houses are in Wandsworth and he's a resident of Sweden.....

How would the Swedish tax authorities know he had property in the UK or any other foreign country?...and he could avoid British tax by saying he was a non-resident in the UK

For my tax affairs, I prefer to play by the rules. The tax office has more resources to chase me than I have to run from them, so there is no benefit from trying to deceive them as the deception will just roll up with interest & penalties & blow up in my face.

BTW, UK Non-resident landlords pay a flat 25% tax on the rental profit they make, but aren't subject to CGT. Currently I'm a UK resident and a Swedish resident at the same time (legally).

In Sweden, I pay no tax at all, as my Swedish tax liability is less than my UK liability & the double taxation treaty means the UK tax paid offsets the Swedish tax in full.

However if I were to sell-up whilst living in Sweden, I'd be subject to 30% CGT. So at some point, when I've decided enough's enough, New Zealand is the destination of choice where there is no CGT.

BTW I agree with Laurejon, except for the dishonest bits. The rules are written for the masses who can't make decisions for themselves, but also written by people who can't make decisions for themselves either - public servants & employees of large corporations. Do you trust your future to those people?

Edited by Time to raise the rents.

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It appears the rule book has be rewritten, those of us who were brought up to respect Authority, respect your neighbours, and to work hard with an honest days work for an honest days pay are now the minority.

So the real facts of life need to be written, lest others follow our path.

1. Purchase a house during the bottom of a crash

2. Purchase as many houses as possible during the low and let some out.

3. Do not save any money.

4. Do not pay into a pension of any sort

5. Do not play by the rules

6. Do whatever it takes to keep on the top of the pile.

Provided you do the above, then at age 55 sell off all the property, and purchase property overseas with the proceeds. Let these properties out, but do not declare the income.

Get yourself into rented housing, preferably Council or Housing Association by the time you are 60.

Sign on and make it your job to research all the benefits available.

You should get a full state pension, rent paid, Council Tax paid, free transport, free NHS. And have a lovely tax free income from overseas each month.

Having any assets and working in the UK is now a serious liablity.

How many people are actually doing this LJ or is this another load of your old B*******?

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Guest Winners and Losers

Currently I'm a UK resident and a Swedish resident at the same time (legally).

TTRTR - how does this work? Is it because you own property in the UK and are, therefore, resident for tax purposes? Can I be a resident of the UK and Australia at the same time (legally)?

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TTRTR - how does this work? Is it because you own property in the UK and are, therefore, resident for tax purposes? Can I be a resident of the UK and Australia at the same time (legally)?

The reason I am still a UK resident, despite spending less than 90 days a year in the UK, is that my only source of income is from the UK. The UK considers that if your sole income is UK based, that you can't claim non-residence for 3 years (to show that you really are living abroad), but you are welcome to continue to be a UK resident (because the UK can then tax your UK based income) as long as you have no foreign income to speak of (which would show that the other country may have a first claim to taxing you).

But in Sweden, because I spend so much time here, they also claim the right to tax me. It unfortunately means seemingly endless work compiling my Swedish tax return, only to have it come to zero when the UK tax is taken into account.

I discussed this in person with the Swedish authorities and they were certain that the position was quite right & also understood my frustration at having to do a Swedish return, but the point to them is that until the numbers are worked out, I may have a tax liability here.

The position of UK / Australia is even better for me as if I were to move there (entirely possible as I am Australian), I should be able to live there without even filling in a return. Here is a copy & paste of something my Australian Accountant friend found for me:

ID2005/207 - Rental Income received from real property situated in the

Uk. Rental income received by a taxpayer who is a dual resident of

Australia and the UK from real property situated in the UK is not

included in the taxpayer's assessable income under S.6.5(2) of the

ITAA 1997.

So you can be a dual resident of the UK & Australia. I don't know what the position would be for other types of income, but as you can see it is possible not to be taxed in Australia for the UK income. But you have to ask yourself why - is it because the UK tax exceeds the Australian tax and therefore they don't want you to claim double taxatiuon relief because it would result in a lower tax bill on your other Australian income (if you had one). This may be a rule that benefits the tax office, but costs most taxpayers & benefits just a few taxpayers.

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LJ totally agree..... the big question is what do you do at a market peak....

1. Buy a large shabby house on a 5/10 year fixed IO morgage (no more than two stories), live in it and rent out 3 to 4 other rooms, using the income to fill Stocks and share isas..

2. Continue to rent and wait for the trough

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Not sure what anyone else is going to do, but I certainly will be helping myself to some nice handouts when te time comes.

It makes sense that if everything is being equally distributed (The Labour Party make no secret of this) then it would be foolish to work your nuts off so you can get less of the free handouts.

The recipe for success today,to have children at 17, plenty of them. And get yourself into Government housing.

You will be able to purchase it a few years down the road at massive discount after all the local taxpayers have subsidised your rent. Make sure you dont work, as you will with 5 children get a handsome income, plus free Uni Fees if you wish to embark on bettering yourself.

Its a no brainer.

Everyone must make sure they have either spent their money before they retire, or hidden it somewhere they cannot find it.

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The reason I am still a UK resident, despite spending less than 90 days a year in the UK, is that my only source of income is from the UK. The UK considers that if your sole income is UK based, that you can't claim non-residence for 3 years (to show that you really are living abroad), but you are welcome to continue to be a UK resident (because the UK can then tax your UK based income) as long as you have no foreign income to speak of (which would show that the other country may have a first claim to taxing you).

But in Sweden, because I spend so much time here, they also claim the right to tax me. It unfortunately means seemingly endless work compiling my Swedish tax return, only to have it come to zero when the UK tax is taken into account.

I discussed this in person with the Swedish authorities and they were certain that the position was quite right & also understood my frustration at having to do a Swedish return, but the point to them is that until the numbers are worked out, I may have a tax liability here.

The position of UK / Australia is even better for me as if I were to move there (entirely possible as I am Australian), I should be able to live there without even filling in a return. Here is a copy & paste of something my Australian Accountant friend found for me:

ID2005/207 - Rental Income received from real property situated in the

Uk. Rental income received by a taxpayer who is a dual resident of

Australia and the UK from real property situated in the UK is not

included in the taxpayer's assessable income under S.6.5(2) of the

ITAA 1997.

So you can be a dual resident of the UK & Australia. I don't know what the position would be for other types of income, but as you can see it is possible not to be taxed in Australia for the UK income. But you have to ask yourself why - is it because the UK tax exceeds the Australian tax and therefore they don't want you to claim double taxatiuon relief because it would result in a lower tax bill on your other Australian income (if you had one). This may be a rule that benefits the tax office, but costs most taxpayers & benefits just a few taxpayers.

This transparent and informative post is why I have always welcomed TTRTR on this forum.

We all rag him, but we would miss him if went.

PS. Pity about your avatar though - a real paper bag job. Would gladly send you one - any colour preference?

Edited by Red Baron

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The rules are written for the masses ........ by people who can't make decisions for themselves either - public servants & employees of large corporations. Do you trust your future to those people?

Of course not.

And that is exactly why I'm not in property and am sitting out a crash.

It is mindless drones like this who are spinning furiously about the current state of the UK economy.

When I get advice from these people (or even hear them comment) about what a good buy property is and how I 'cant lose' then I know its a market to avoid.

Flies around sh1te.

TTRTR your attempts to justify your investments are usually entertaining and often intelligent.

But even an uber-bull like you must be casting an uneasy eye on your investments with these morons cheering you on......?

It makes sense that if everything is being equally distributed (The Labour Party make no secret of this) then it would be foolish to work your nuts off so you can get less of the free handouts.

Everyone must make sure they have either spent their money before they retire, or hidden it somewhere they cannot find it.

This is becoming more and more obvious.

I'm quite annoyed that my years of saving are being held against me.

I set up a business 2 years ago.

You would not believe the sheer incompotence of the 'authorities' I was involved with.

I could mesmerise you with stories of 'im alright jack' seat-warming civil servants all filling in forms for other civil servants to photocopy.

Their f*cking around and laziness cost me thousands.

In the end I has to cut jobs to make the numbers work.

**Never get involved in any government scheme to create jobs - the only jobs they create are for the civil servants administering them**

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This transparent and informative post is why I have always welcomed TTRTR on this forum.

We all rag him, but we would miss him if went.

yeah. -like a hole in the head...!!

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Yes, Great link, Cinnamon.........

The book explains why increasing money available to the public sector is akin to pouring it down a black hole......A perfect example is how since Labour came to power in 1997 the number of managers in the Health Service has increased by over 50%......It's the opposite of the private sector as you get paid more the more people are working under you so there's an incentive to be as inefficient as possible.....

They used to call this ''empire-building'' and although possible is far harder to do in the private sector.

Aren't all countries' public sectors like this though?????

Edited by Michael

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All the people I know with villas abroad (Florida and Spain) are losing money on them. Both on opex/cashflow i.e. The cost of owning/running them is higer than the rental income and on capital appreciation the prices are falling. A real double whammy and not great retirement planning!

Pablo Silver or Lead

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Laurejon's playing of the system is especially appropriate for people whose incomes are just above the benefits level.......If i save for a pension it'll just reduce the state benefits i'd be entitled to as an oldie on top the basic state pension...

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Exactly Michael!!.

I know of single mothers (On Paper, their partner works) who get 1500pcm in benefits, and own a property. They could not possibly go to work, pay for childcare and be left with 1500pcm, plus the 2,500pcm their secret partner earns.

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The reason I am still a UK resident, despite spending less than 90 days a year in the UK, is that my only source of income is from the UK. The UK considers that if your sole income is UK based, that you can't claim non-residence for 3 years (to show that you really are living abroad), but you are welcome to continue to be a UK resident (because the UK can then tax your UK based income) as long as you have no foreign income to speak of (which would show that the other country may have a first claim to taxing you).

But in Sweden, because I spend so much time here, they also claim the right to tax me. It unfortunately means seemingly endless work compiling my Swedish tax return, only to have it come to zero when the UK tax is taken into account.

I discussed this in person with the Swedish authorities and they were certain that the position was quite right & also understood my frustration at having to do a Swedish return, but the point to them is that until the numbers are worked out, I may have a tax liability here.

The position of UK / Australia is even better for me as if I were to move there (entirely possible as I am Australian), I should be able to live there without even filling in a return. Here is a copy & paste of something my Australian Accountant friend found for me:

ID2005/207 - Rental Income received from real property situated in the

Uk. Rental income received by a taxpayer who is a dual resident of

Australia and the UK from real property situated in the UK is not

included in the taxpayer's assessable income under S.6.5(2) of the

ITAA 1997.

So you can be a dual resident of the UK & Australia. I don't know what the position would be for other types of income, but as you can see it is possible not to be taxed in Australia for the UK income. But you have to ask yourself why - is it because the UK tax exceeds the Australian tax and therefore they don't want you to claim double taxatiuon relief because it would result in a lower tax bill on your other Australian income (if you had one). This may be a rule that benefits the tax office, but costs most taxpayers & benefits just a few taxpayers.

Thanks. Also in Australia you can rent your property out for 6 years and sell it within that time without paying any CGT, which is a bit of a bonus. Taxes, death!

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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