Living Off Your Investments ...

[NovaBlue05]

Okay, lets take it to a vote.

I got 440,000 CAD, im 26 and think that I should be able to get about 90,000 THB/month out of that, without going into the principle.

Would you do it? Yea or nay.

Go to Thailand..call it an experiment if you wish. Be smart with your money but enjoy the experience. By the time you are 30, you should be able to assess your situation clearly. If it isn't as you hoped, you are still young enough to go back home and start a career in the western ratrace....or you may consider Thailand home by then.

I only wish I was in your situation when I was 26.

Chok Dee!

[Napolean_Complex]

The fund does not sound too bad from the limited info you give, but what is the break down (stocks/bonds/reits/dividend payers Etc.)? That will give you an idea about risk level - especially stock/bond split.

I like the idea of just keeping investments abroad, earning 30k/mth extra by being non-resident and just taking the money in you need.

Cheers!

The break down for bond's and equties is as follows:

1. Canadian Equities 51.70%

2. Bonds and Debentures 48.30%

The top 10 holdings are:

1. Manulife Financial Corporation 3.80%

2. Royal Bank of Canada 3.70%

3. Bank of Nova Scotia 3.40%

4. Toronto-Dominion Bank, The, 3.30%

5. Canadian Imperial Bank of Commerce 3.10%

6. Sun Life Financial Inc. 2.50%

7. Imperial Oil Ltd. 2.10%

8. Shell Canada Limited 2.10%

9. Brookfield Asset Management Inc., Class A 1.90%

10. Enbridge Inc. 1.80%

Looks like mostly banks and Insurance companies. They dont go broke to often.

[Tammi]

Based on the info you gave us Napolean_Complex I think you have enough. As long as that Mutual Fund keeps returning that amount and you reinvest the 30K per Month surplus then you will have enough. Health insurance at your age in Thailand is cheap, just get some of that then increase it as you get older. There is one thing some expats forget, Australia, Britain and Canada have a National Health System. You can go back home should you get seriously ill and get free treatment, that is my back stop too. In the case of Australia you do lose it if you are out the country for 5 years or more. Go ahead and retire, you will enjoy it, cheers.

If the airline will accept a seriously ill-looking person. And what about waiting lists in the UK and Canada? My experience before I left to retire in Thailand was that hospital emergency couldn't find anything wrong. I had to pay nearly $1,000 to have private MRI that showed problem. Then my gynae of several years said she had no time to see me. I eventually found a surgeon willing to take a look and he was only free to see me because he was just back from 3 months suspension for leaving a swab in a patient which, I think, was not his fault - there are Op Room Sisters and nurses who should have counted swabs. And because I went private to have MRI my best friend (!) was annoyed 'because I had taken an appointment that should have been filled by a poor person'.

[cclub75]

Looks like mostly banks and Insurance companies. They dont go broke to often.

Beware of the big "credit crunch" that is coming at full speed, worldwide. Bank will be in the front line on the "pain race"...

I agree : since few years, banks are making huge profits. But it's only because of the credit bubble.

Anyway.

Just a tip : right now i'm cash only. But i start to prepare the "day after the recession".

In this regard, i found the perfect place on earth : Hong kong. No tax on capital gain, no tax on dividends, no withholding tax. You can invest sabai sabai in funds and get the full return, without hassle or specific regulation (like franken dividends in Australia).

[migrant]

In this regard, i found the perfect place on earth : Hong kong. No tax on capital gain, no tax on dividends, no withholding tax. You can invest sabai sabai in funds and get the full return, without hassle or specific regulation (like franken dividends in Australia).

I've seen the advice about HK and other country investments. How do you go about it?

Do you travel to HK and open with a company?

Thanks!!

[gwkenny]

If you actually plan on living here for 10+ years than it makes no sense to keep all of your assets in Canadian assets with 100% exchange rate exposure. At least diversify some into the asian markets (the bonds portion would probably be safest) like Japan if not Thai.

Good points made about re-investment.

You should diversify your holdings so it includes Thai investments. Though you may want to give yourself a timeline. Get over here. Do research for 6-months. At that point, either put some money in the market regarding stocks you have been following, or fund some sort of venture in Thailand. That will also give you something to do accept lose time in the bars.

g-

[BlackJack]

Looks like mostly banks and Insurance companies. They dont go broke to often.

Beware of the big "credit crunch" that is coming at full speed, worldwide. Bank will be in the front line on the "pain race"...

everything has a cycle - banks are no different however they dont lose for long

I agree : since few years, banks are making huge profits. But it's only because of the credit bubble.

Anyway.

Just a tip : right now i'm cash only. But i start to prepare the "day after the recession".

if you are locked into fixed deposits over a certain time frame then these are normally guaranteed by the government - there is very little risk

In this regard, i found the perfect place on earth : Hong kong. No tax on capital gain, no tax on dividends, no withholding tax.

please advise what the top dividend in HK is and what kind of money do you need etc?

You can invest sabai sabai in funds and get the full return, without hassle or specific regulation (like franken dividends in Australia).

[LoveDaBlues]

HSBC (Hong Kong) paying a whopping 3.3% on 1 year fixed deposit of 1 million HKD or more. Hard to get excited about that even tax free.

[cclub75]

HSBC (Hong Kong) paying a whopping 3.3% on 1 year fixed deposit of 1 million HKD or more. Hard to get excited about that even tax free.

It depends of the currency you choose.

http://www.hsbc.com.hk/script/hk/personal/...sp?currency=AUD

But I notice that banks in Singapore are offering better rates (almost 1 % difference for AUD for instance)

[womble]

If you actually plan on living here for 10+ years than it makes no sense to keep all of your assets in Canadian assets with 100% exchange rate exposure. At least diversify some into the asian markets (the bonds portion would probably be safest) like Japan if not Thai.

Good points made about re-investment.

You should diversify your holdings so it includes Thai investments. Though you may want to give yourself a timeline. Get over here. Do research for 6-months. At that point, either put some money in the market regarding stocks you have been following, or fund some sort of venture in Thailand. That will also give you something to do accept lose time in the bars.

g-

The Thais market is subject to too many risks, only extremely sophisticated and experianced investors should attempt this market.

There is no decent research available to the average investor, and different language and methods of accounting make it a difficult task.

There are far better ways to hedge the canadian dollar than buy into Thai stocks.

The Thai market suffers from all manner of illegal trade deals and stock manipulation, there are significant Political risks.

India and China are very interesting, there are risks there ofcourse and good gains to be had, but research is much better on the companys there, so if you want to get into emerging asian markets I would look there before here.

My only advice for anyone wishing to invest here is next time a businessman gets into power buy into his stock, remember to sell them before he sells his company or is booted out of office though!

As for the advice with blue chips in Thailand, these too are subject to share manipulation, it's an extremely risky investment and should only be undertaken by those with an extremely high risk tolerance.

[BlackJack]

HSBC (Hong Kong) paying a whopping 3.3% on 1 year fixed deposit of 1 million HKD or more. Hard to get excited about that even tax free.

It depends of the currency you choose.

http://www.hsbc.com.hk/script/hk/personal/...sp?currency=AUD

But I notice that banks in Singapore are offering better rates (almost 1 % difference for AUD for instance)

there is a bank in Perth Australia that pays 6.6% at call

better than HK

[cclub75]

there is a bank in Perth Australia that pays 6.6% at call

better than HK

Probably. But you would have to pay taxes on interests earned, right ?

[BlackJack]

there is a bank in Perth Australia that pays 6.6% at call

better than HK

Probably. But you would have to pay taxes on interests earned, right ?

Yes .66% read

point 66%

and thats better than most

[bmanly]

there is a bank in Perth Australia that pays 6.6% at call

better than HK

Probably. But you would have to pay taxes on interests earned, right ?

Whilst Blackjack is pointing out the favourability of opening this account he fails to point out that Only Australian Resisdents are eligible to open such an account. You must also have a regular Australian bank account to transfer funds to and from too. More can be found on THIS LINK and then click on "Product Disclosure Statement".

cclub75, to answer your question, as a non resident of Australia earning bank interest income you will have to pay a 10% witholding tax on the interest earned.

[BlackJack]

there is a bank in Perth Australia that pays 6.6% at call

better than HK

Probably. But you would have to pay taxes on interests earned, right ?

Whilst Blackjack is pointing out the favourability of opening this account he fails to point out that Only Australian Resisdents are eligible to open such an account. You must also have a regular Australian bank account to transfer funds to and from too. More can be found on THIS LINK and then click on "Product Disclosure Statement".

cclub75, to answer your question, as a non resident of Australia earning bank interest income you will have to pay a 10% witholding tax on the interest earned.

TRUE its for Aussies

I am sure there are a few reading this thread!

for others there is an even more favourable rate in New Zealand and this is open to foreigners and the 10-15% tax applies

NZ TAX go to page 12

the only issue i see here is the currency fluctuations - the NZ dollar had a fall recently and they think the worst is over and so the risk is less

When you open a NZ account your currency is conversted to NZ Dollars - not so bad now as the exchange is lower - or you can leave it in your currency but the interest rate is lower or applicable to your country

Some of the NZ funds are paying high as well - check out

NZ funds

[ArranP]

heres my financial situation I am planning to come thailand with:

Long term capital growth angle:

------------------------------------

Do not sell up! I will keep 9 properties in UK, market value approx £1,000,000, this will continue to rise with UK property market at approx 7-8% a year over the long term.

After 5 years in non-UK-tax-resident status UK properties are no longer liable for UK capital gains tax when sold, so can sell when-ever and take the full gain.

Monthly Income angle from rent:

--------------------------------------

On the properties amount owed to the banks is approx £500,000, yearly bank interest (@ 5.49% base tracker) is £27,450.

Rental return is £51,600 less bank interest £27,450 is profit/income £24,150.

After UK tax (approx £4,000) leaves £20,150, monthly this is £1,679 (approx 117,000 baht).

Minimize Tax Saving angle:

--------------------------------

Reduce UK tax by increasing UK borrowing to reduce UK profit/income made.

Increase UK borrowing to £850,000, yearly bank interest is now (@5.49% base tracer) £ 46,665.

Rental reutrn £51,600 less bank interest £46,665 is profit/income £4,935, this is below UK tax allowance of £5,035, so no tax to pay!!

The additional capital raised from increasing UK borrowing £350,000 move into an off-shore high interest savings account (@5.00% base tracker), makes £17,500.

There is no tax to pay as it is off-shore and you/I am now non-uk-tax-resident.

So the return on the savings account £17,500 + UK profit/income £4,935 is £22,435, monthly £1,869 (approx 130,000 baht)

I will rent in thailand as this gives flexibility to move around, over the years the rent in thailand will go up but so will the rent I charge on my properties in the UK. Maybe later in years I will cash in and sell the properties in the UK but not for a long time yet.

My thinking is that I covered most of the angles I can in providing myself a financial income whilst in Thailand, with still the possibility to return to the UK to live if need be wihtout having to return to work.

[smilingjim]

heres my financial situation I am planning to come thailand with:

Long term capital growth angle:

------------------------------------

Do not sell up! I will keep 9 properties in UK, market value approx £1,000,000, this will continue to rise with UK property market at approx 7-8% a year over the long term.

After 5 years in non-UK-tax-resident status UK properties are no longer liable for UK capital gains tax when sold, so can sell when-ever and take the full gain.

Monthly Income angle from rent:

--------------------------------------

On the properties amount owed to the banks is approx £500,000, yearly bank interest (@ 5.49% base tracker) is £27,450.

Rental return is £51,600 less bank interest £27,450 is profit/income £24,150.

After UK tax (approx £4,000) leaves £20,150, monthly this is £1,679 (approx 117,000 baht).

Minimize Tax Saving angle:

--------------------------------

Reduce UK tax by increasing UK borrowing to reduce UK profit/income made.

Increase UK borrowing to £850,000, yearly bank interest is now (@5.49% base tracer) £ 46,665.

Rental reutrn £51,600 less bank interest £46,665 is profit/income £4,935, this is below UK tax allowance of £5,035, so no tax to pay!!

The additional capital raised from increasing UK borrowing £350,000 move into an off-shore high interest savings account (@5.00% base tracker), makes £17,500.

There is no tax to pay as it is off-shore and you/I am now non-uk-tax-resident.

So the return on the savings account £17,500 + UK profit/income £4,935 is £22,435, monthly £1,869 (approx 130,000 baht)

I will rent in thailand as this gives flexibility to move around, over the years the rent in thailand will go up but so will the rent I charge on my properties in the UK. Maybe later in years I will cash in and sell the properties in the UK but not for a long time yet.

My thinking is that I covered most of the angles I can in providing myself a financial income whilst in Thailand, with still the possibility to return to the UK to live if need be wihtout having to return to work.

There are lots of variables in this equation:

1) Assumption that property prices will go up

2) Uncertainty over interest rates payable

3) Uncertainty over interest rates receivable

4) You are letting 9 properties - is this classified by HMRC as a business? Certainly in my days of working for them it would have been! This impacts on your capital gains tax position - see 3 below

Just some thoughts:

1) Who is managing the property lettings whilst you are abroad?

2)What happens if there are periods when the properties aren't let? Will the rental income be sufficient to pay interest?

3) Are you sure you will not be liable to CGT? look at HMRC leaflet IR20, in particular this section:

Non-residents with a UK branch or agency

8.7 If you are neither resident nor ordinarily resident in the UK and carry on a trade, profession or vocation through a branch or agency in the UK, you will be liable to capital gains tax on any gains on the disposal of assets in the UK which were used in the trade, profession or vocation, or by the branch or agency. You may also be liable to capital gains tax if the activity ceases or you transfer the assets outside the UK.

4) Have you considered your Inheritance Tax position on these properties and any other assets?

[Naam]

financial situation: income 100% / expenses 26% / average yield ex cash 9.638% p.a.

holdings:

Lottomatica pp EUR....................... XS0254095663

PBA17 EUR................................... XS0234088994

Ineos16 EUR................................. XS0242945367

NordicTel15 EUR............................ XS0252438899

TuranAlem11 EUR.......................... XS0269267000

TROY CAP11 EUR.......................... XS0263392358

Nurbank11................................... XS0269698246

Petrol 11 EUR............................... XS0271812447

Sibacadem 11 EUR........................ XS0274663383

GE10 MXN................................... XS0225500635

Austria TRY................................. XS0260875033

USD:

Pemex pp.................................... XS0201926663

Braskem pp.................................. USP18533AD48

Odebrecht pp............................... XS0229458665

CSN pp........................................ USG25847AA53

Unibanco pp................................. USG9191BFV56

Globo pp...................................... XS0251389457

National Steel pp........................... XS0242966017

Jam36.......................................... US470160AU62

GM33........................................... US370442BT17

Ecu30.......................................... XS0115743519

Ford29......................................... US345370BZ25

Galicia19...................................... USP09669BR53

ATF16 (Kaz)................................. XS0253723281

BIC 16......................................... XS0246205495

Cell C15....................................... XS0224153360

Severstal14.................................. XS0190490606

Shanghai RE13.............................. XS0251314364

Hynix12....................................... USY3817WAK54

Titan12....................................... US888312AA33

Durango12................................... US21986MAK18

Rus Standard11............................ XS0253166655

Vimpelcom11................................ XS0203407894

Gol11.......................................... USG3980PAA33

G-Steel10.................................... XS0229866354

Hipotecario10............................... XS0235386447

Gaja Tungal10.............................. XS0224891944

Banco Cruzeiro11.......................... XS0269109608

Asia Aluminium11........................... USG0536XAA12

Seychelles11................................ XS0269874664

MEDCO10..................................... XS0168954823

Xinhua......................................... XS027568564

Davomas...................................... USY2029LAA71

Industrias Unidas16........................ USP56064BV26

[younghusband]

heres my financial situation I am planning to come thailand with:

Long term capital growth angle:

------------------------------------

Do not sell up! I will keep 9 properties in UK, market value approx £1,000,000, this will continue to rise with UK property market at approx 7-8% a year over the long term.

After 5 years in non-UK-tax-resident status UK properties are no longer liable for UK capital gains tax when sold, so can sell when-ever and take the full gain.

Monthly Income angle from rent:

--------------------------------------

On the properties amount owed to the banks is approx £500,000, yearly bank interest (@ 5.49% base tracker) is £27,450.

Rental return is £51,600 less bank interest £27,450 is profit/income £24,150.

After UK tax (approx £4,000) leaves £20,150, monthly this is £1,679 (approx 117,000 baht).

Minimize Tax Saving angle:

--------------------------------

Reduce UK tax by increasing UK borrowing to reduce UK profit/income made.

Increase UK borrowing to £850,000, yearly bank interest is now (@5.49% base tracer) £ 46,665.

Rental reutrn £51,600 less bank interest £46,665 is profit/income £4,935, this is below UK tax allowance of £5,035, so no tax to pay!!

The additional capital raised from increasing UK borrowing £350,000 move into an off-shore high interest savings account (@5.00% base tracker), makes £17,500.

There is no tax to pay as it is off-shore and you/I am now non-uk-tax-resident.

So the return on the savings account £17,500 + UK profit/income £4,935 is £22,435, monthly £1,869 (approx 130,000 baht)

I will rent in thailand as this gives flexibility to move around, over the years the rent in thailand will go up but so will the rent I charge on my properties in the UK. Maybe later in years I will cash in and sell the properties in the UK but not for a long time yet.

My thinking is that I covered most of the angles I can in providing myself a financial income whilst in Thailand, with still the possibility to return to the UK to live if need be wihtout having to return to work.

I think the likelihood is that you are well set up.However there is one huge flaw in your plan which relates to a possible property crash or major downward adjustment.If your properties are in Central London you are probably alright because that market is kept robust through London's role as an international financial centre.Elsewhere while probably OK 2006-8, the outlook's murky thereafter.Don't want to scaremonger but I would look to diversify a bit more -bonds, equities etc.

[ArranP]

There are lots of variables in this equation:

1) Assumption that property prices will go up

No certainty property prices will go up, however investing for the long term ie 20 years or more increase this possiblity.

2) Uncertainty over interest rates payable

3) Uncertainty over interest rates receivable

both lending rate and saving rate are guaranteed englad base rate trackers, however there is a risk if interest rates go up high enough they won't be covered by rental yield, but if interest rates go so will rental charges, after 10 years the amount borrowed will not change however assuming the rental charges will have gone up, in-time this risk is reduced.

4) You are letting 9 properties - is this classified by HMRC as a business? Certainly in my days of working for them it would have been! This impacts on your capital gains tax position - see 3 below

because I'm not buying and selling properties, it is not regarded as "trading"

Just some thoughts:

1) Who is managing the property lettings whilst you are abroad?

for the moment, no agency will be involved, I have long term tennants, and maybe can return to the UK once in a while, also there are people/family/tradesmen I know in the area, existing tennants can network the local community to find new tennants.

2)What happens if there are periods when the properties aren't let? Will the rental income be sufficient to pay interest?

at the moment there is a shortage of housing

3) Are you sure you will not be liable to CGT? look at HMRC leaflet IR20, in particular this section:

Non-residents with a UK branch or agency

thanks for this point, will look into this, however no agency involved, and not regarded as "trading".

8.7 If you are neither resident nor ordinarily resident in the UK and carry on a trade, profession or vocation through a branch or agency in the UK, you will be liable to capital gains tax on any gains on the disposal of assets in the UK which were used in the trade, profession or vocation, or by the branch or agency. You may also be liable to capital gains tax if the activity ceases or you transfer the assets outside the UK.

4) Have you considered your Inheritance Tax position on these properties and any other assets?

have not looked at the IHT angle, however any advice is welcomed, I have some reading to do here

Thanks for the response.

[ArranP]

financial situation: income 100% / expenses 26% / average yield ex cash 9.638% p.a.

holdings:

Lottomatica pp EUR....................... XS0254095663

PBA17 EUR................................... XS0234088994

Ineos16 EUR................................. XS0242945367

NordicTel15 EUR............................ XS0252438899

TuranAlem11 EUR.......................... XS0269267000

TROY CAP11 EUR.......................... XS0263392358

Nurbank11................................... XS0269698246

Petrol 11 EUR............................... XS0271812447

Sibacadem 11 EUR........................ XS0274663383

thanks stocks, interested/intreagued in/by the stock market, but have lots of uncertainty in the long term, would talk for hours/days/weeks on this subject so to know more before making a step, my fear would be a stock crash and loosing all my capital.

[smilingjim]

Your comments are noted.

As for IHT - this can be as simple or complicated as you want it to be! Specialist area.

The basics are that at present the first 285K is exempt and the rest of the estate is chargeable at 40% so you are looking at potentially a lot of your estate going to the tax man! This may or may not bother you depending on who you intend to pass the estate on to!

In a case like yours if you do not want any money going to the tax man it may be worth your while going to a top firm of accountants with a dedicated tax planning department and discussing estate planning. Areas to consider:

1) What happens to the property loans when you die? Are they covered by Life Insurance policies?

2) If so, are these policies written in trust?

3) Do you have a will?

4) Setting up a trust- either on-shore or off-shore.

[bendix]

It doesnt matter how well someone is doing or how organised they are, there is always someone who will have a negative comment to make.

I'm sure if Bill Gates came on here, some financial whizzkid would suggest that having too much of his wealth in one stock could be dangerous.

[GuestHouse]

I'm sure if Bill Gates came on here, some financial whizzkid would suggest that having too much of his wealth in one stock could be dangerous.

I'm sure that if Bill Gates came on here some Walter Mitty or ther would be telling us all that he's doing better than Mr Gates.

A great deal of what is said and claimed about personal investments just doesn't add up.

The mainstream advice given by all the major wealth management companies is the same: There's a time in life to make money(when we are young), and there's a time in life to secure the money we have made (when we are old).

If anyone is not following that advice, ie planning their retirement on the basis of making enough growth investment during retirement. Then they need to either have a great deal of skill + luck or sufficient capital to be able to absorb losses.

So long as people are happy with their own plans, all well and good. But I take a large dose of salt with any claims made here on how much capital people have and/or how much they are making in returns on investments.

Appart from not adding up, the claims also contradict another obeservation of mine - People who have plenty of money, seldom, if ever, talk about it.

[HenryB]

[

Obeservation of mine - People who have plenty of money, seldom, if ever, talk about it.

So I guess the wife family is very rich as they alway tell me they have no money.

Thanks for info

[ArranP]

Appart from not adding up, the claims also contradict another obeservation of mine - People who have plenty of money, seldom, if ever, talk about it.

With UK Buy-To-Let "Flexible" morgages, equity within a property can be released upto a pre-agreed limit, thus increasing the interest payable to bank and reducing UK based income profit/income.

Investing this capital/equity off-shore when non-UK-tax resident, either in a high-return off-shore deposit account or something else like a building project, attracts no UK tax.

Also some properties in the UK give better yields than others, ie. a bungalow with a market value of £230,000 may only attract a monthly rental of £450 per calendar month, however a two bedroom town center terrace house with a market value of £120,000 would attract a monthy rental income of £500.

So to optimise the position, the bungalow could be sold and from this two terrace be purchased, thus increasing the return on £230,000/£240,000 (bear in mind this is part bank/part equity/deposit/capital) from £450 per calendar month to £1000 per calendar month.

Also reducing the portfolio from 10 house to 9 house would also decrease the amount payable in interest and increase profit.

I'm not sure yet, how exactly to stack things, but I have until christmas 2007 to think on it, at this time I would have achieved my savings target.

Hopefully interest rates in the UK will continue to be kind over the long term, not reaching again the heady heights of 10-15% like in the late 80's, however I must take care to optimise my position and not over leverage myself for long term gain so far that I would fall short in covering monthly interest.

I think in my case currently "flexible" is the word, however if I change to non-flexible buy-to-let morgages a better tracker rate can be gained, hence the toying with different ideas.

I am interested to learn from others how they have managed to live from their investments.

[Naam]

my fear would be a stock crash and loosing all my capital

*****

some misunderstanding perhaps? my list of holdings does not include any stock but only bonds. details about each individual position can be found with the relevant attached ISIN/Cusip number.

[ArranP]

my fear would be a stock crash and loosing all my capital

*****

some misunderstanding perhaps? my list of holdings does not include any stock but only bonds. details about each individual position can be found with the relevant attached ISIN/Cusip number.

Thanks Dr Naam, I am very much of a novice outside of the property market, are bonds a guaranteed return ? is there a good site to track them and another to discuss them ?

[englishoak]

So long as people are happy with their own plans, all well and good. But I take a large dose of salt with any claims made here on how much capital people have and/or how much they are making in returns on investments.

Appart from not adding up, the claims also contradict another obeservation of mine - People who have plenty of money, seldom, if ever, talk about it.

My thoughts exactly.

[BlackJack]

heres my financial situation I am planning to come thailand with:

Long term capital growth angle:

------------------------------------

Do not sell up! I will keep 9 properties in UK, market value approx £1,000,000, this will continue to rise with UK property market at approx 7-8% a year over the long term.

After 5 years in non-UK-tax-resident status UK properties are no longer liable for UK capital gains tax when sold, so can sell when-ever and take the full gain.

Monthly Income angle from rent:

--------------------------------------

On the properties amount owed to the banks is approx £500,000, yearly bank interest (@ 5.49% base tracker) is £27,450.

Rental return is £51,600 less bank interest £27,450 is profit/income £24,150.

After UK tax (approx £4,000) leaves £20,150, monthly this is £1,679 (approx 117,000 baht).

Minimize Tax Saving angle:

--------------------------------

Reduce UK tax by increasing UK borrowing to reduce UK profit/income made.

Increase UK borrowing to £850,000, yearly bank interest is now (@5.49% base tracer) £ 46,665.

Rental reutrn £51,600 less bank interest £46,665 is profit/income £4,935, this is below UK tax allowance of £5,035, so no tax to pay!!

The additional capital raised from increasing UK borrowing £350,000 move into an off-shore high interest savings account (@5.00% base tracker), makes £17,500.

There is no tax to pay as it is off-shore and you/I am now non-uk-tax-resident.

So the return on the savings account £17,500 + UK profit/income £4,935 is £22,435, monthly £1,869 (approx 130,000 baht)

I will rent in thailand as this gives flexibility to move around, over the years the rent in thailand will go up but so will the rent I charge on my properties in the UK. Maybe later in years I will cash in and sell the properties in the UK but not for a long time yet.

My thinking is that I covered most of the angles I can in providing myself a financial income whilst in Thailand, with still the possibility to return to the UK to live if need be wihtout having to return to work.

you didnt factor in the bar girl you will give it all too