Sincere advice & opinion sought

[BB1958]

I am about to retire and claim a Pension from OZ (Half Married rate). Having a working life of close to 50 years, my pension is globally portable & indexed – for life. Please do not dispute this aspect – it is fact!

 

I have Cash Invested in OZ Return on this is Paid Monthly, PLUS my half pension, works out about 60,000 Baht a month income. (But it could be a lot more)

 

Married to a Thai 24 yrs and I would not trade 1 day. We also have a fully paid house in OZ but, intend to keep it locked up – had some bad experiences with tenants and I know the (gross) return (RENT) on this home is around $20,000 or 40,000 Baht a month. Some years ago we spent $25000 fixing damage done by tenants IN ONE YEAR. I would like to up my income to 100,000 Baht a month, but have been badly burned…. What would you do??? Rent or leave it locked up?

 

We rarely spend 30,000 Baht a month – mostly, considerably less, as neither of us ever drink and don’t smoke. I rarely bother with the money – my "bride" handles that, always has AND is damned good at it. ALL accounts are Joint except my Thai account – in my name only, but, with a “companion” ATM card.

 

In Thailand we have a fully paid for home, recently FULLY refurbished to a nice modern standard. Extremely cool & comfortable home with my wife’s pride & joy – a beautifully equipped kitchen.

 

Only family we help out is M.i.L She is 70+, and her needs are minimal – her “allowance” is 5000 Baht per calendar month, Plus she gets 800 Baht per month pension– she saves two thirds of all that & lives well. She is the most frugal woman I have ever met. In twenty+ years of our support, she has bought TWO blocks of land out of the small monthly income we give her – and paid them off. Decades ago we bought her a home and a few years ago, COMPLETELY refurbished it, it will see her out, for sure. We do not want anything that will drain us in the coming years.

 

Beautiful wife has a significant superannuation stashed in OZ, but as she is so young (51) it will need to sit in the high risk account – in all the years, we have kept it in the high risk account it has never averaged less than 10%pa. But of course it can.

 

INSURANCE – still live in OZ and have not explored this. Of course we have lived in Thailand a few months here & there over the years – travel insurance was what we had. But it would seem prudent to look at health insurance now ?? Happy with local hospital cover – have no idea what to expect in this minefield… What option’s are there for 70++ year old’s?

 

Our lifestyle helps us remain healthy, both of us are decades long vegans. We take no medication and most days we “jog” about 8-9+ kilometres. Was wondering (as we live in the north) if we should continue jogging, with all this pollution we keep reading about ???. Is it really so bad?? Only once stayed in the Feb/Mar period - it was a little unpleasant I recall - Cannot remember the year.

 

In all the years coming here – almost every year for the past 30 or so, we (both) have noticed a rather strong tightening of “the rules”. However, in real terms – at least for us – they do not seem to have negatively affected us (much). WE CAN live our life in OZ and it is beautiful here. Our ability to have as much quality on about $600 per week (Assuming we don’t touch our savings) is not as carefree as the Thai economy. In In Thailand we can eat out often, go to concerts and many other events of common interest and so much more – We would probably need about $3-4000 per week in OZ, to eat out daily and go to shows & places of interest…

 

Anyhow I have waffled on enough… Anything we have done wrong, not thought of, etc.. Please chip in and let us know

 

[tonray]

I don't understand the question. If you have the means to live in either OZ or Thailand why not discuss it and live where you both want to ? What is the issue you are struggling with ? Why keep a house locked up in OZ ? Sell the damned thing and be done with it.

[i claudius]

Just get on with it,you dont need advice

Sent from my SM-A720F using Thailand Forum - Thaivisa mobile app

[NanLaew]

Since you seem to have managed things quite well so far, the only fly in the ointment would be health insurance. Having decent health insurance at your age in Thailand is very important. Not sure how easy you would get it though if your age is already (I guess) over 70?

 

Not sure why there's so much debate about your property in New Zealand; it is ultimately a pretty sound source of securing emergency liquidity if needed. Boarded up means no incremental income but let under a proper property management company should avoid such severe damage by bad tenants. Unless it's a roach trap in a real undesirable neighborhood, I wouldn't sell it. The OP is savvy enough to sense the winds of change in LOS so selling the house and having no recourse to a quick, safe haven back home may be unwise. I think you should consider being 'snowbirds' like the US retirees that spend summer in Massachusetts and winter in Florida but that all depends on which island your home in New Zealand is.

[Kwasaki]

1 hour ago, BB1958 said:

Anyhow I have waffled on enough

Yep. 

[Kwasaki]

5 minutes ago, NanLaew said:

New Zealand

Oz is Australia .

[Salerno]

What's the question?

[NanLaew]

9 minutes ago, Kwasaki said:

Oz is Australia .

Oops! That's one too many San Migs tonight Nan.... off to bed with you!

 

But unless he lives in Tasmania, then maybe the 'snowbirds' bit still applies.

[sipi]

The only thing I can suggest is to look for a GOOD real estate agent who does thorough regular inspections, and then possibly rent it out.

We are practically in the same situation as you and divide out time between Thailand and Australia. I would never rent out either house. 

Look for good airfares and continue to enjoy the best of both worlds.

[BB1958]

2 hours ago, sipi said:

The only thing I can suggest is to look for a GOOD real estate agent who does thorough regular inspections, and then possibly rent it out.

We are practically in the same situation as you and divide out time between Thailand and Australia. I would never rent out either house. 

Look for good airfares and continue to enjoy the best of both worlds.

Hi Sipi,

What do you do about insurance - if I did that I would continue with travel insurance - but you may have a better idea?? I don't rent either house also.

Thanks for your post.

[BB1958]

8 hours ago, NanLaew said:

Since you seem to have managed things quite well so far, the only fly in the ointment would be health insurance. Having decent health insurance at your age in Thailand is very important. Not sure how easy you would get it though if your age is already (I guess) over 70?

 

Not sure why there's so much debate about your property in New Zealand; it is ultimately a pretty sound source of securing emergency liquidity if needed. Boarded up means no incremental income but let under a proper property management company should avoid such severe damage by bad tenants. Unless it's a roach trap in a real undesirable neighborhood, I wouldn't sell it. The OP is savvy enough to sense the winds of change in LOS so selling the house and having no recourse to a quick, safe haven back home may be unwise. I think you should consider being 'snowbirds' like the US retirees that spend summer in Massachusetts and winter in Florida but that all depends on which island your home in New Zealand is.

Thanks for your input - I understand the confusion between OZ & NZ - just one letter :) I should not abbreviate on any forum, especially a multicultural forum. The "winds of change in LOS" comment is interesting, as even my wife said things are "very" different - I  notice it, but, it does not seem onerous at the present time - to me at least. We tried bringing MUM to Australia, she was granted a one year visa - hated it, and was back home within 10 weeks.

 

Yourself & Sipi, seem to be on the same page as far as your "snowbirds" comment - thanks for your advice.

[sipi]

14 minutes ago, BB1958 said:

Hi Sipi,

What do you do about insurance - if I did that I would continue with travel insurance - but you may have a better idea?? I don't rent either house also.

Thanks for your post.

Maybe leave the insurance follow up to the "experts".

Personally we get a good deal with travel insurance through TID (travel insurance direct). It also covers those little side trips outside of Thailand and Oz.

[Oxx]

A few points:

 

(1) Why keep the house boarded up? Sell it and invest the cash to generate additional income.

 

(2) With all your income in NZD you are highly exposed to the NZD/THB exchange rate.  Better to move some of your wealth to Thailand and/or diversify currency exposure.

 

(3) It sounds like you have a lot of your wealth in cash.  It won't even keep up with inflation, and that could be a big problem over the coming decades.  Have some investments in equities to allow for potential capital growth as well as income.

[BB1958]

15 minutes ago, sipi said:

Maybe leave the insurance follow up to the "experts".

Personally we get a good deal with travel insurance through TID (travel insurance direct). It also covers those little side trips outside of Thailand and Oz.

Was with Nomads for years - but now they will not insure me, because I am over 70 - just checked your suggestion and they do insure those over 70. Thanks for the heads up. Oh and "Choice" recommend it, I respect "choice".

[BB1958]

17 minutes ago, Oxx said:

A few points:

 

(1) Why keep the house boarded up? Sell it and invest the cash to generate additional income.

(3) It sounds like you have a lot of your wealth in cash.  It won't even keep up with inflation, and that could be a big problem over the coming decades.  Have some investments in equities to allow for potential capital growth as well as income.

1 Maybe I am a dumb <deleted>, but I love Australia, I could not bear to sever my ties.

3. In this regard I am an even dumber - I don't know how to play the market - I get 4.77% at the moment and we have "deeming" in Australia. It means the GOV deems us to be getting X% therefore if we can get more it is not counted towards income. At least that's how I understand it.

[sipi]

20 minutes ago, BB1958 said:

Was with Nomads for years - but now they will not insure me, because I am over 70 - just checked your suggestion and they do insure those over 70. Thanks for the heads up. Oh and "Choice" recommend it, I respect "choice".

I don't do this personally but I know one couple who do......

Some credit cards offer free insurance if you pay for air tickets using said card. Of course if you pay it off immediately you basically get it for the cost of the card annual fee. 

Might be worth investigating. 

 

Edit.. I could never live in Thailand full time and a lot of other Aussies also. 

[BB1958]

5 minutes ago, sipi said:

I don't do this personally but I know one couple who do......

Some credit cards offer free insurance if you pay for air tickets using said card. Of course if you pay it off immediately you basically get it for the cost of the card annual fee. 

Might be worth investigating. 

Hey mate - YOU and people like you are why I posted - I already have one of those  cards - NEVER even gave it a thought, just remembered when ANZ gave to me over 10 yrs ago they mentioned it - Platinum Visa. Never ever used it, costs nothing to retain - and there may be a dire emergency one day, so just kept the thing.

 

Just checked online and your dead right, they do insure for 3 months FREE. I have to see my bank on Monday - I will talk with them about the full workings and if it can be long enough for our trips that are over three months. BIG saving here - up to $1800+ on a top 6 month cover.

 

There are no benefits being a dumb <deleted> 

[MalandLee]

31 minutes ago, sipi said:

I don't do this personally but I know one couple who do......

Some credit cards offer free insurance if you pay for air tickets using said card. Of course if you pay it off immediately you basically get it for the cost of the card annual fee. 

Might be worth investigating. 

 

Edit.. I could never live in Thailand full time and a lot of other Aussies also. 

Seems I have to join the dumb <deleted> club - I too never gave this credit card insurance a thought..... BUT, I will now.

Plus I am same as you mate - cannot live there full time - currently in Ozzie land and loving it :)

[Peterw42]

OP, I cant see why you wouldn't rent out your house. If you use a good agent that vets tenants, does regular inspections etc. For a couple of dollars a week you can get landlord insurance that covers you for tenants trashing the place or skipping etc. Part of getting good tenants is being a good landlord, fix things straight away when they break, dont go crazy trying to put the rent up every 6 months etc.

Rent from a single property probably wont be enough to have any effect on your pension, and declaring the income and doing tax returns will help you maintain "resident for taxation purposes".

[metisdead]

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[impulse]

9 hours ago, Kwasaki said:

Oz is Australia .

 

NZ, OZ, What's the diff?

[Peterw42]

30 minutes ago, BB1958 said:

Hey mate - YOU and people like you are why I posted - I already have one of those  cards - NEVER even gave it a thought, just remembered when ANZ gave to me over 10 yrs ago they mentioned it - Platinum Visa. Never ever used it, costs nothing to retain - and there may be a dire emergency one day, so just kept the thing.

 

Just checked online and your dead right, they do insure for 3 months FREE. I have to see my bank on Monday - I will talk with them about the full workings and if it can be long enough for our trips that are over three months. BIG saving here - up to $1800+ on a top 6 month cover.

 

There are no benefits being a dumb <deleted> 

You need to be a little bit careful with the CC insurance options, they come with 427 pages of conditions. They are insuring a holiday, not going to live somewhere else, you usually need a return airfare booked to qualify. 

 

 

[Oxx]

1 hour ago, BB1958 said:

1 Maybe I am a dumb <deleted>, but I love Australia, I could not bear to sever my ties.

3. In this regard I am an even dumber - I don't know how to play the market - I get 4.77% at the moment and we have "deeming" in Australia. It means the GOV deems us to be getting X% therefore if we can get more it is not counted towards income. At least that's how I understand it.

 

(1) I think you're letting emotion get in the way of rationality.  Simply selling the house doesn't sever ties with friends and family.  They are still there, and they are the important thing - not boarded up bricks and mortar.  The money raised by selling the house would cover the cost of many weeks staying in an hotel on your return trips to your homeland and could be invested to provide you with additional income.

 

(3) The 4.77% you're getting at the moment is insignificant if the AUD drops against the THB.   And the fact that Australian interest rates are so high suggests that the markets think it will drop in value.  A 30% change in exchange rate between currencies in a year is a common occurrence.  Brits in Thailand have suffered as the value of GBP has almost halved over recent years.

 

As for simple, one stop investing with low charges, look at Vanguard.  Their LifeStrategy funds provide instant diversification and are available at a number of different risk levels.  You might also consider their Index International Shares Fund which has less exposure to Australia.

 

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/fundDetail/retail/portId=8126/?overview

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/fundDetail/retail/portId=8145/?overview

[tomwct]

Sell the house and invest the money. The costs of living is going up in OZ with no ending in site, so when you retire to Thailand you'll love it and never want to go back except to visit family and friends. 

[Peterw42]

8 minutes ago, tomwct said:

Sell the house and invest the money. The costs of living is going up in OZ with no ending in site, so when you retire to

Thailand you'll love it and never want to go back except to visit family and friends. 

If the cost of living is going up in oz, wouldn't that mean that the rental return on the OPs house would also be going up ? Sell the house and invest in what ? Money in the bank gets a return but the capital doesn't appreciate, it wont stay ahead of inflation. A property has capital appreciation and a return, it will stay ahead of inflation. 

[ballpoint]

11 hours ago, NanLaew said:

... but that all depends on which island your home in New Zealand is.

The West Island.

[Kwasaki]

3 hours ago, impulse said:

 

NZ, OZ, What's the diff?

A lot IMO.  Different Country.  Weather.  People.

[whiteman]

As Peter w42 said the cc insurance is only good for trips and will not cover you if you are deemed to be living in Thailand check the small print but trust me it does not.

 

If you have a all ready paid up house in Thailand then 60k bhat up north should just about do you but no health cover there.

 

Health cover for a 70 year old in Thailand is around 125k a year if you can get it now.

 

So you can always self insure depending how much is your lump sums you have in place.

 

Looking at your calcs as to half pension and lump sums  combined of 60000 bhat a month I would say 2 things you can shoot me down later.

 

But 50 years in a pension that returns say 40,000k Bhat per month it must have been very small contributions or your wagers were low over that time and the rest made up of your lump sums brings you an other 20000 so both give you 60000 bhat your figures not mine.

 

Hence why I think not sure but your lump sums in Ausy if large enough could cover you for say a heart attack and recovery in  a Thai hospital and maybe some lump sum left over.

 

So looking at what details you have written my gut feeling for you and your wife is to stay in Ausy and carry on just visiting Thailand  and see out your days that way.

 

I myself are 70 from NZ not Ausy but have enough to have made the other choice and made Thailand our home for the last 13+ years but I do not live up north so I need more than 60k monthly income to live.

We also do not live in Bangkok and have our own home which is paid off so no debts.

 

I hope you take this message in good faith.

[cyberfarang]

For the over 60s living in Thailand long term, will find themselves in medical limbo. No longer entitled to free health care in their own countries, not entitled to any government benefits in Thailand and many insurance companies refuse to provide medical coverage for the elderly and those that do are charging ridiculous premiums that hardly makes it viable.

 

This is my main concern living in Thailand and there does not seem to be a plan B for serious accident or health issues.

[sipi]

I would be almost certain that if you are on a tourist visa you can be deemed a tourist and the credit card insurance will cover you. As I said I have never used it but I do know of one couple who read even the finest of small print and they use it all the time.

Worth concidering, TID will generally discount future insurance policies by 10o/o after the first one.

However Sipi is certainly no insurance "expert".