Medicare card Australia. Can I still get it?

[4MyEgo]

4 hours ago, ELVIS123456 said:

Just re-read things and meant to say something before - old timers disease catching up 

 

I did the numbers on buying a house versus renting, and unless you get a decent annual increase in the house's sales value, it is financially better to rent (over about 5-7 years).  Over only 2-3 years, it would be much better to rent financially in most circumstances.

 

Obviously it all depends on what you are going to get for your money from investments rather than using it to buy a house.  But with Super returns at well over 5% (averaging about 7% last 10 years) it makes no sense to buy for me.  When buying you pay stamp duty and legals etc.,  you then have rates and insurance and maintenance etc, and when you sell you pay agent's fees and legals etc.  The money you get from keeping the money invested is more than the net proceeds for a buy/sell outcome. The interest received will more than pay the rent for the equivalent residence, when it is calculated on that basis.

 

Something to think about.  Unless I have missed something?

 

Always good to get feedback from you ELVIS123456 as we are on the same page.

 

I am currently in the stock market as the returns are very good and tax free for me here as a foreign resident.

 

Having 25 years in real estate and the valuation industry since I retired two years ago, sort of puts me a little ahead of the pack if I can say that, suffice to say the Sydney market has had a great run for the past 5 years, i.e. from around September 2012 to June 2017 and now cooling down with auction clearance rates hovering around the 55% mark Vs 90% in the highs. 

 

So I see a 3 year slow decline/adjustment, in the typical real estate cycle of 7 years, which will flat line for the remainder of the 7 year cycle, and I thinks my timing might just be perfect, i.e. 65 years of age, in 8 years time, purchase a property, live in it, wait for two years, get the pension at 67 and portability approved, then sell at either 67, 68 or 69 once the booooom has come and just about gone.

 

Worst case scenario I break even and had a roof over my head rent free, but rent would be down the drain for me with kids, as it has to be something decent to accommodate my lifestyle, i.e. did the hard yards in my younger years, now its got to be comfy.

 

I have made all my coin in real estate, I know nothing else, but knew it wasn't worth holding property back in Sydney as a foreign resident and more changes are on the way, so people with property as foreign residents will soon find out, it isn't worth holding.

 

Investing in the stock market (tax free) has provided me with a great financial lifestyle here, i.e. I am doing a hell of a lot better than the 30,000 baht net per month that I would of been getting from renting out my property back in Sydney after tax and outgoings, in other words it would have been a 50/50 split with the government, council, water board, real estate agents, etc etc and one could say I am doubling what I would have been getting before any split, and the lot is tax free, so I am thankful for the government for treating me as a foreign resident because, the government receives sweet FA from me tax wise, sure you have to agree, serves them right, as I am playing the game with their rules !

 

I believe that if I rented when I go back, with the money I have in the stock market, I wouldn't qualify for the pension with the assets test, at least by purchasing a place, I can, although I won't be making an income on the stock market, and I won't need much to survive, as we all know, if you have a mortgage in Sydney, you are in the slave trade for a long whiles, with the mortgage taking most of your income, and as I am married they will cut a portion of the pension down 25%, so the Mrs can go and get a part time job earning some cash under the table, so to speak to put food on the table until we are ready to come back to Thailand, naturally I will have some cash to see us through as well.

 

But to be honest, I think the way everything is going here, I won't need to go back for about 10% of what I am averaging here, that and who knows how ones health will be let alone if alive then, but you have to have a plan, whether it comes to fruition or not is something to be seen, just pisses me off, but then again, when hasn't the Australian government not pissed me off....lol

Edited November 7, 2017 by 4MyEgo

[ELVIS123456]

13 hours ago, 4MyEgo said:

Always good to get feedback from you ELVIS123456 as we are on the same page.

 

I am currently in the stock market as the returns are very good and tax free for me here as a foreign resident.

 

Having 25 years in real estate and the valuation industry since I retired two years ago, sort of puts me a little ahead of the pack if I can say that, suffice to say the Sydney market has had a great run for the past 5 years, i.e. from around September 2012 to June 2017 and now cooling down with auction clearance rates hovering around the 55% mark Vs 90% in the highs. 

 

So I see a 3 year slow decline/adjustment, in the typical real estate cycle of 7 years, which will flat line for the remainder of the 7 year cycle, and I thinks my timing might just be perfect, i.e. 65 years of age, in 8 years time, purchase a property, live in it, wait for two years, get the pension at 67 and portability approved, then sell at either 67, 68 or 69 once the booooom has come and just about gone.

 

Worst case scenario I break even and had a roof over my head rent free, but rent would be down the drain for me with kids, as it has to be something decent to accommodate my lifestyle, i.e. did the hard yards in my younger years, now its got to be comfy.

 

I have made all my coin in real estate, I know nothing else, but knew it wasn't worth holding property back in Sydney as a foreign resident and more changes are on the way, so people with property as foreign residents will soon find out, it isn't worth holding.

 

Investing in the stock market (tax free) has provided me with a great financial lifestyle here, i.e. I am doing a hell of a lot better than the 30,000 baht net per month that I would of been getting from renting out my property back in Sydney after tax and outgoings, in other words it would have been a 50/50 split with the government, council, water board, real estate agents, etc etc and one could say I am doubling what I would have been getting before any split, and the lot is tax free, so I am thankful for the government for treating me as a foreign resident because, the government receives sweet FA from me tax wise, sure you have to agree, serves them right, as I am playing the game with their rules !

 

I believe that if I rented when I go back, with the money I have in the stock market, I wouldn't qualify for the pension with the assets test, at least by purchasing a place, I can, although I won't be making an income on the stock market, and I won't need much to survive, as we all know, if you have a mortgage in Sydney, you are in the slave trade for a long whiles, with the mortgage taking most of your income, and as I am married they will cut a portion of the pension down 25%, so the Mrs can go and get a part time job earning some cash under the table, so to speak to put food on the table until we are ready to come back to Thailand, naturally I will have some cash to see us through as well.

 

But to be honest, I think the way everything is going here, I won't need to go back for about 10% of what I am averaging here, that and who knows how ones health will be let alone if alive then, but you have to have a plan, whether it comes to fruition or not is something to be seen, just pisses me off, but then again, when hasn't the Australian government not pissed me off....lol

I hear you mate - makes sense.  If I ever do buy it will be a cheapie, that I can use as my 'base' so that I stay a resident for tax - otherwise when I withdraw Super the taxable component has no tax-free threshold ($18K PA). But more than likely, after I get the OAP, I will just rent a relatives place/room, and move in there before we go back to Thailand. But it would ne nice to have our own cheapie for when we visit Oz at least once every 2 years to maintain residency.  If I do buy, I would definitely not sell it, as that money would be counted against the assets for the OAP assessment.  And I certainly would not rent it out, other than to relos and friends, as the taxes are horrendous and the 'tenant rights' laws are even worse.  

 

 

[4MyEgo]

33 minutes ago, ELVIS123456 said:

I hear you mate - makes sense.  If I ever do buy it will be a cheapie, that I can use as my 'base' so that I stay a resident for tax - otherwise when I withdraw Super the taxable component has no tax-free threshold ($18K PA). But more than likely, after I get the OAP, I will just rent a relatives place/room, and move in there before we go back to Thailand. But it would ne nice to have our own cheapie for when we visit Oz at least once every 2 years to maintain residency.  If I do buy, I would definitely not sell it, as that money would be counted against the assets for the OAP assessment.  And I certainly would not rent it out, other than to relos and friends, as the taxes are horrendous and the 'tenant rights' laws are even worse.  

 

 

There we go, I wrote, you read, then you wrote and I read, something new picked up, I didn't know that if I sold the place once I got the OAP they could reduce my pension vi the assets test.

 

Learning something every day.

 

Thanks, might have to re-plan once again.

[ELVIS123456]

5 hours ago, 4MyEgo said:

There we go, I wrote, you read, then you wrote and I read, something new picked up, I didn't know that if I sold the place once I got the OAP they could reduce my pension vi the assets test.

 

Learning something every day.

 

Thanks, might have to re-plan once again.

Cheers mate.  Another thing to consider is that they will also apply deeming to your investments, and use that as income against the OAP income test too.   I believe that they will do that both while you are in Oz and get the OAP, and also when you are overseas living as a non-resident for tax purposes.  

 

I have looked into things a lot, and I could not find a way around being deemed on my Super once I get the OAP - both when in Oz and also when living in Thailand. But the amount is not too big an issue for me, as it only reduces my OAP by a small amount. 

 

I also like the idea of renting because CLink will also pay me up to $125 a fnight as 'rental assistance' when I get the OAP. 

https://www.dva.gov.au/factsheet-is75-renting-and-rent-assistance-social-security-age-pensioners

 

Yet another way the Oz Govt screws over the long suffering taxpayers who have worked hard and own their own home.  They reward people who have got the OAP age without owning a house, by paying their rent.  Will they 'reward' good taxpayers who own homes by maybe offsetting the ever increasing annual rates? Or any other Govt 'penalties' for owning a house? No. No. No. 

 

Nanny State gone mad. But all you can do is learn the ins and outs, and then do what is in your own best interests.

 

[4MyEgo]

7 minutes ago, ELVIS123456 said:

Cheers mate.  Another thing to consider is that they will also apply deeming to your investments, and use that as income against the OAP income test too.   I believe that they will do that both while you are in Oz and get the OAP, and also when you are overseas living as a non-resident for tax purposes.  

 

I have looked into things a lot, and I could not find a way around being deemed on my Super once I get the OAP - both when in Oz and also when living in Thailand. But the amount is not too big an issue for me, as it only reduces my OAP by a small amount. 

 

I also like the idea of renting because CLink will also pay me up to $125 a fnight as 'rental assistance' when I get the OAP. 

https://www.dva.gov.au/factsheet-is75-renting-and-rent-assistance-social-security-age-pensioners

 

Yet another way the Oz Govt screws over the long suffering taxpayers who have worked hard and own their own home.  They reward people who have got the OAP age without owning a house, by paying their rent.  Will they 'reward' good taxpayers who own homes by maybe offsetting the ever increasing annual rates? Or any other Govt 'penalties' for owning a house? No. No. No. 

 

Nanny State gone mad. But all you can do is learn the ins and outs, and then do what is in your own best interests.

 

Well done, the sauce gets thicker by the day.

 

So any idea how long one has to get rid of a lot of cash, i.e. 5 years or something like that, because I could easily transfer it to my daughters account in Australia and say it was her to buy a unit, that or I buy a place in her name, just off the top of my head, i.e. if she hasn't already purchased one, otherwise it would be an investment, so if she has one, maybe I pay off her mortgage, but not before I am registered as the new mortgagee in the Land Titles Office, i.e. I would be her bank, and then when I get the OAP and return to Thailand, she refinances and the new lender pays off her debt to me, but that money would go straight into the stock market and around the merry go round we go again.

 

Nothing easy with these C...ts

[ELVIS123456]

1 hour ago, 4MyEgo said:

Well done, the sauce gets thicker by the day.

 

So any idea how long one has to get rid of a lot of cash, i.e. 5 years or something like that, because I could easily transfer it to my daughters account in Australia and say it was her to buy a unit, that or I buy a place in her name, just off the top of my head, i.e. if she hasn't already purchased one, otherwise it would be an investment, so if she has one, maybe I pay off her mortgage, but not before I am registered as the new mortgagee in the Land Titles Office, i.e. I would be her bank, and then when I get the OAP and return to Thailand, she refinances and the new lender pays off her debt to me, but that money would go straight into the stock market and around the merry go round we go again.

 

Nothing easy with these C...ts

CLink can decide that any amount of money has been 'gifted' and it is therefore counted as an asset and deemed that income is being generated from it. This was introduced to stop pensioners selling their million dollar house, buying a cheaper place, and 'gifting' the balance to their kids (and getting a little back now and then as required), either while getting the pension, or in the immediate years leading up to getting the pension. 

 

I am not sure how long before you get the OAP that would be applied (if that is what you are thinking), but I would say at least 2 years (I dont think there is any set limit though). 

 

Any existing investment funds you have (either in Oz or OS) once you become a tax resident again by moving back and claiming the OAP, will be counted as an asset and deemed to be earning income. 

 

As we both know, any funds used to buy your home would be exempted from the asset tests . But while ever you are on the OAP (no time limit),  they will deem any money received from selling that home as an asset and deem it for income - whether you are in Oz or OS.  The Tax office may well decide that once you are back in Thailand that you are a non-resident for tax and that actual investment returns are not taxable (withholding tax aside), but I believe that CLink would still assess that money as an investment asset and deem it as earning an income for the purposes of the OAP asset and income tests.

 

Therefore I would not recommend trying to 'hide' the investment money by using it as you describe.  You would be probably worse off anyway, as well as opening yourself up to potential financial problems (the courts are full of family issues gone wrong).

 

Mate - it seems to me that you might be better off just playing a straight bat and fully disclosing your investments, sticking to renting (get some back while on OAP), and then getting out of Dodge as soon as the OAP is portable.  But I am no expert and I dont know your exact situation, so I could be easily wrong.  Once I got all the numbers on how CLink calculated everything and worked out each scenario for myself, it was better for me to leave the money in Super (draw a little down as required) and get out of Dodge as soon as the OAP is portable (and restructure the Super when leaving). 

 

Yep. Big hairy ugly smelly ones.

 

[4MyEgo]

18 hours ago, ELVIS123456 said:

CLink can decide that any amount of money has been 'gifted' and it is therefore counted as an asset and deemed that income is being generated from it. This was introduced to stop pensioners selling their million dollar house, buying a cheaper place, and 'gifting' the balance to their kids (and getting a little back now and then as required), either while getting the pension, or in the immediate years leading up to getting the pension. 

 

I am not sure how long before you get the OAP that would be applied (if that is what you are thinking), but I would say at least 2 years (I dont think there is any set limit though). 

 

Any existing investment funds you have (either in Oz or OS) once you become a tax resident again by moving back and claiming the OAP, will be counted as an asset and deemed to be earning income. 

 

As we both know, any funds used to buy your home would be exempted from the asset tests . But while ever you are on the OAP (no time limit),  they will deem any money received from selling that home as an asset and deem it for income - whether you are in Oz or OS.  The Tax office may well decide that once you are back in Thailand that you are a non-resident for tax and that actual investment returns are not taxable (withholding tax aside), but I believe that CLink would still assess that money as an investment asset and deem it as earning an income for the purposes of the OAP asset and income tests.

 

Therefore I would not recommend trying to 'hide' the investment money by using it as you describe.  You would be probably worse off anyway, as well as opening yourself up to potential financial problems (the courts are full of family issues gone wrong).

 

Mate - it seems to me that you might be better off just playing a straight bat and fully disclosing your investments, sticking to renting (get some back while on OAP), and then getting out of Dodge as soon as the OAP is portable.  But I am no expert and I dont know your exact situation, so I could be easily wrong.  Once I got all the numbers on how CLink calculated everything and worked out each scenario for myself, it was better for me to leave the money in Super (draw a little down as required) and get out of Dodge as soon as the OAP is portable (and restructure the Super when leaving). 

 

Yep. Big hairy ugly smelly ones.

 

Sounds like sound advice to me.