cornishboy

Just a little info for Acron lease holders regards selling at a future date.

I've been advised that the following is the method used;

You ("the owner") can advertise the property or Acron will do it for you.
Once a buyer is found, the price is agreed. The buyer then pays Acron the amount that the "owner" paid Acron for it, the remainder (the profit) is paid to the seller. Acron then pays the owner (the seller) that money which the new buyer has just paid them.
The profit would be subject to a Capital gains.
Now again I was told that if I wanted to sell before taking possession Acron would refund my money no problems but minus £300. I was told that I would be rather silly to sell before taking possession as the value of the property has gone up as I bought off plan.

I assume that if Acron's new buyer is an expat they would be offered the lease route again.
Hope that help's.
Thank's again to Douglas M for making us think of possible problems.
It's hard some times to think of questions until the problem is presented.

karlq

hi cornishboy yes you are corect on your information,i was told the same by dr john britto ,before my wife and i signed up for are villa. we are quite happy going for a 5 year lease,as we are only 48 yrs old,to early to retire yet,we love goa ,been 6 times, we have no worries with acron what so ever,they have been very helpfull,and honest,we cant wait to take possesion of are villa. see u karl

cornishboy

Thanks Kariq, see you at Eva.

Douglas M

Hi cornishboy,

Thank you for your acknowledgement in the last para. I really am trying to withdraw from this discussion and accept that others do not have my analytical mind , objectivity or experience and if they are happy doing these things - so what.

But then my concience pricks me and i say to myself that the arrangement you have just happily outlined is a hybrid between a cult and a pyramid scheme and will only work as long as prices keep going up. Why can I so clearly see fundamental points that others dont?

Once prices fall, the developers put option will be withdrawn ( see my previous post on put options) and it wont work

I had to say it, sorry.

Douglas

cornishboy

Hi Douglas,
Thank you for your reply, yes I appreciate that prices can go down as well as up.
All my eggs are not in one basket so a little risk is acceptable in my case.
Again, I do thank you for your input into this site as I'm sure most "viewers" do.

Douglas M

Hi all,

As an afterthought, if anyone out there is even thinking along the lines that property prices cannot fall. Just for the moment, please refrain from posting such theories on this site and thus spare douglas from having to repeatedly bang his head against the wall.

thankyou

Douglas M

Hi again cornishboy,

Our posts must have crossed, im so relieved you said that bit about prices being a two way thing!

You see when i bang my head, the neighbors complain and my wife tries to trick me into taking my medication by disguising it in that milky coffee that i like so much.

Then there is the restraining order to consider and [I]they[/I always know where i am because i have this thing strapped to my ankle, so i have to be careful.

regards douglas

Remy-Ireland

Hi All,

This sounds fine if your happy enough with the arrangement but can you obtain residency or get another visa other than a tourist 6 month one?

Just one other question, How much is the capital gains tax on any profit does anyone know?

Thanks,
Remy.

cornishboy

Hi Remy,
re the visa, I'm quite happy with the six month tourist visa. In the current situation I don't think any "foreigner" will get any visa other than a tourist visa unless they are setting up a "proper" trading company.
I believe that capital gains tax is 30% if you sell within three years and 20% after that. (taxed only on profit).

Remy-Ireland

Thanks Cornishboy,
I guess at the end of the day 6 months in Goa is better than nothing. Actually at the moment i would give my eye teeth to be able to spend 6 months of the year in Goa.
At least Acron are replying to your questions and if you know what your actually getting for your money and your content then 'happy days'.

Douglas M

Hi again Remy,

Ill answer the last para first, Im not an expert but try 20 or 30 percent of the gain less an allowance for indexation for long term gains ( holdings for more than three years)

For holdings less than three years, it would be added to any income and charged at the rate of the top band of income tax applicable. If no other income, at the appropriate band that would be applicable if you were paying income tax.

Your first para refers to visas, I think cornishman has previously accepted that he and other brits will probably only be able to get a tourist visa, so lets assume that to be the case .

But douglas's mind is racing here and he is now thinking how can you incurr a tax liability if youve only got a tourist visa. The only thing you can do on such a visa is be a tourist. To have incurred a capital gain you must be involved in some sort of trade, what sort of things can you trade on a tourist visa, not a lot?

This conundrum is now starting to ring alarm bells in douglas's brain and out of the corner of my eye i can see my wife is putting the milk pan on for the coffee again.

Douglas is going through the logic trail now step by step and can see how the developer is trying to avoid any cgt liability on the sale of a lease disposed at a profit , on which they would presumably could pay corporation tax .So they intend to hive off the profit bit to the tenant and sell the lease at par, so no cgt to pay at their end. So far far so good.( for the developer that is)

So now the tenant is receiving a payment for sellingsomething direct from the new buyer and is expected to pick up the cgt tab for it. Furthermore, the payment ( the profit) is 100% subject to cgt, because the developer has stripped out the base cost for his own ends .

The question is what exactly are the tenants selling? It cant be the lease as its obviously not transferable, thats why the developer is doing the deal in the first place and not the tenant.

Douglass mind races even faster and then he says to himself, if there is a seller there must be a buyer and that buyer might be a brit on a tourist visa. So the second question is is the buyer permitted to buy this thing whatever it is on a tourist visa?

So that brings us to the third question, we dont yet know what the tenant is actually selling and whatever it is, is he also permitted to engage in such an activity on a tourist visa?

And whilst im all fired up, why the hell are you lot out there accepting all this stuff youre being fed at face value and not questioning it like douglas does?

douglas

keithrogers

Hello all.

Remember,you have no rights,no ownership possibilities,all you have is a very expensive rental property,you are just a "tourist"


Keith Rogers :curse:

cornishboy

Hi Douglas,
I really enjoy reading your posts so stimulating thank you, wish you were my financial advisor.
I can't really comment on your post, can only say that Acron has been operating this method for about 14 years and I haven't yet found any unhappy customers.
It was hinted some where that there are ways around the cgt, India being India. this is of course if there is any profit, as like the stock market who knows which way house prices will be heading when you want to sell.
Hark I think I can hear matron coming with your Milk.
Thanks again Douglas

keithrogers

Still only a tourist though....


Get your cash out a.s.a.p......


Keith.

cornishboy

Most of us only want to be a "tourist", England in the Summer, Goa in the winter, then you don't lose any UK "perks" by being non resident.
See you "On The Dark Side Of The Moon" Keith.