Finances - where to home my hard-earned!
#16
Re: Finances - where to home my hard-earned!
Why don't you consider a buy-to-rent apartment in the UK?
You would probably get a better return than 2% plus the possibility of capital appreciation.
Tax on the rental would be in the UK but declared on your French tax return.
You can use your UK Will to take precedence over French rules although the tax due would be French.
If at some stage in the future you decide to return to the UK then you would have a home to return to.
Alternatively. as I suggested above, you could buy a new rental apartment in France with the tax advantages that apply.
You would probably get a better return than 2% plus the possibility of capital appreciation.
Tax on the rental would be in the UK but declared on your French tax return.
You can use your UK Will to take precedence over French rules although the tax due would be French.
If at some stage in the future you decide to return to the UK then you would have a home to return to.
Alternatively. as I suggested above, you could buy a new rental apartment in France with the tax advantages that apply.
#17
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Joined: Jan 2018
Posts: 223
Re: Finances - where to home my hard-earned!
Thanks Cyrian
it sounds awful but I really am at the stage where I don’t want the hassle of running 2 properties and the issues involved should I suddenly need that money for any particular reason - so it’s not a case of trying to optimise investment potential but rather knowing my cash sum isn’t dwindling too far with the way inflation is worldwide. Again apologies for sounding flippant but I don’t have anyone that really needs my cash when I die - my niece and 2 nephews will get what’s left and we aren’t that close that I’m desperate to leave them loads of money! Just exploring really if there are indeed smaller banks (like the ones in UK - Secure Trust, Shawbrook, Aldermore etc) that do offer better than insultingly low rates like all major banks. I’ve searched online but keep getting articles on Livret A and the like.
thanks again
it sounds awful but I really am at the stage where I don’t want the hassle of running 2 properties and the issues involved should I suddenly need that money for any particular reason - so it’s not a case of trying to optimise investment potential but rather knowing my cash sum isn’t dwindling too far with the way inflation is worldwide. Again apologies for sounding flippant but I don’t have anyone that really needs my cash when I die - my niece and 2 nephews will get what’s left and we aren’t that close that I’m desperate to leave them loads of money! Just exploring really if there are indeed smaller banks (like the ones in UK - Secure Trust, Shawbrook, Aldermore etc) that do offer better than insultingly low rates like all major banks. I’ve searched online but keep getting articles on Livret A and the like.
thanks again
#18
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Joined: Jun 2015
Location: France
Posts: 853
Re: Finances - where to home my hard-earned!
I don't think there's any hassle-free, risk-free option in France, Bazzer.
Which is precisely why I bought a couple of rentals in the UK and placed them with an excellent letting agent on a full-management basis.
She deals with everything. No phone calls in the middle of the night about burst pipes.
The properties are small but in a very sought-after area and they attract good tenants.
All I do is fill out the tax returns. The French one was challenging the first time but I've got the hang of it now.
The return won't be huge because of course you will pay extra stamp duty for second homes. And another surcharge if you buy as a non-UK resident. But I reckon it's still better than leaving the money festering in the bank and getting eaten by inflation.
Also, it's somewhere to return to if you ever want to move back. And you can always sell them in the future. Which is another reason to get a few small ones rather than one big one.
Which is precisely why I bought a couple of rentals in the UK and placed them with an excellent letting agent on a full-management basis.
She deals with everything. No phone calls in the middle of the night about burst pipes.
The properties are small but in a very sought-after area and they attract good tenants.
All I do is fill out the tax returns. The French one was challenging the first time but I've got the hang of it now.
The return won't be huge because of course you will pay extra stamp duty for second homes. And another surcharge if you buy as a non-UK resident. But I reckon it's still better than leaving the money festering in the bank and getting eaten by inflation.
Also, it's somewhere to return to if you ever want to move back. And you can always sell them in the future. Which is another reason to get a few small ones rather than one big one.
#19
Re: Finances - where to home my hard-earned!
Hi Baz
I have just returned from the funeralof a dear friend in the USA.
His widow had asked me for some advice along the same lines of investment as yourself.
She has around $500k of liquid cash to invest and is looking for a better rate than the freely available 0.5% from the banks.
I was unable to help her with the $500k money as I am not familiar with USA taxation and investment vehicles.
Much the same as you understanding UK banking and savings vehicles.
I did however review her current income position which fortunately had been well set up by her husband.
She has 3 sources of iretirement ncome:
1. Rental income from a suite of rental properties.
2. Social security benefits ( equivalent to UK State pension)
3. Annuity income.
I was happy that her retirement income was sufficient in the medium term.
If she invests the $500k in a basic savings account then her savings will be eroded over the years by inflation.
I understand that this does not address your question and I can only find the tax-free Livret offering 1% which again does not keep up with inflation.
If you are happy that you have enough income to cover your needs then you may have to accept a low level of income for your cash until interest rates rise due to inflation and money supply.
I also keep an instant access account for potential emergency cash and I have to accept that I will get virtually no return on that cash.
I am not happy about the 0.5% (tax-free) I am getting on that cash but the market is where it is at this time.
I do not think that your response is flippant - these are real issues that we have to address.
Best wishes for your new life in France and hopefully you will find the solutions that you are looking for.
I have just returned from the funeralof a dear friend in the USA.
His widow had asked me for some advice along the same lines of investment as yourself.
She has around $500k of liquid cash to invest and is looking for a better rate than the freely available 0.5% from the banks.
I was unable to help her with the $500k money as I am not familiar with USA taxation and investment vehicles.
Much the same as you understanding UK banking and savings vehicles.
I did however review her current income position which fortunately had been well set up by her husband.
She has 3 sources of iretirement ncome:
1. Rental income from a suite of rental properties.
2. Social security benefits ( equivalent to UK State pension)
3. Annuity income.
I was happy that her retirement income was sufficient in the medium term.
If she invests the $500k in a basic savings account then her savings will be eroded over the years by inflation.
I understand that this does not address your question and I can only find the tax-free Livret offering 1% which again does not keep up with inflation.
If you are happy that you have enough income to cover your needs then you may have to accept a low level of income for your cash until interest rates rise due to inflation and money supply.
I also keep an instant access account for potential emergency cash and I have to accept that I will get virtually no return on that cash.
I am not happy about the 0.5% (tax-free) I am getting on that cash but the market is where it is at this time.
I do not think that your response is flippant - these are real issues that we have to address.
Best wishes for your new life in France and hopefully you will find the solutions that you are looking for.
#20
Re: Finances - where to home my hard-earned!
It's been a year since I last posted, but since we bought the property as an annual rental, it's proven to be a very good investment. We lost the first tenant after 10 months, but they were instantly and seamlessly replaced the second they left with no extra expense or loss of income. I'm very wary of any financial market at the moment, in part because I'm am no expert, but it also seems like a very unpredictable time. I figure with a property, okay there can potentially be headaches at times if something needs fixing or replacing, but generally speaking the capital is relatively well protected in the long term (if you buy at the right place and the right location) and it's something that can keep up with inflationary rates, providing you have good tenants in a decent area who aren't at risk of not being able to pay their rent.
#21
Forum Regular
Thread Starter
Joined: Jan 2018
Posts: 223
Re: Finances - where to home my hard-earned!
Many thanks everybody for input.
My latest quest is to find a bank in this country (UK) that will happily accept me as a non resident and will do simple things like let my pension/s get paid into it and I can then transfer money at will. Currently I am with Halifax who say they don’t do expat accounts but their partner does (Lloyds) and they will open an account for me at an exorbitant monthly fee!
Ill let you know how I get on.
My latest quest is to find a bank in this country (UK) that will happily accept me as a non resident and will do simple things like let my pension/s get paid into it and I can then transfer money at will. Currently I am with Halifax who say they don’t do expat accounts but their partner does (Lloyds) and they will open an account for me at an exorbitant monthly fee!
Ill let you know how I get on.
#22
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Finances - where to home my hard-earned!
Then, also open a Borderless account in euros.
You will then be able to transfer between your € and £ accounts with no transfer costs.
Then once the money is in euros you can either spend it from there (get a card to make online purchases, card purchases and withdraw cash from ATMs) or you can transfer it to your French high street bank account for a small fee.
Ditto any money that you choose to leave in sterling.
That is what I intend to do when I start getting my UK pension later this year. I have had various Borderless accounts for many years, both business accounts and personal accounts, and am very pleased with how well it works.
https://wise.com/
Last edited by EuroTrash; May 4th 2022 at 7:19 am.
#23
Forum Regular
Thread Starter
Joined: Jan 2018
Posts: 223
Re: Finances - where to home my hard-earned!
Hi again!
Ive just spoken to Halifax and have now been told I can keep my account exactly as it is but just need to inform them of my new correspondence address in France.
Makes life much simpler!
Ive already got this account linked to other investments plus Smartcurrency transfers use this.
Thanks ET - I have been considering borderless accounts but hopefully I won’t need to as my French account is all sorted plus I know how to use Halifax and Smart to transfer cash.
Ive just spoken to Halifax and have now been told I can keep my account exactly as it is but just need to inform them of my new correspondence address in France.
Makes life much simpler!
Ive already got this account linked to other investments plus Smartcurrency transfers use this.
Thanks ET - I have been considering borderless accounts but hopefully I won’t need to as my French account is all sorted plus I know how to use Halifax and Smart to transfer cash.
#24
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Finances - where to home my hard-earned!
Yes I also have a Halifax account and from time to time they get all panicky about where i live and make me fill in forms but they've never threatened to cancel the account.
What I like about the Borderless thing is that it's so easy, the different currencies there on one screen so you can see at a glance what money you've got where, and the transfers take about two seconds. And if you're like me (which I'm sure you're not!) and you keep changing your mind and forgetting/remembering things, it's not a problem. Say you move all your sterling to euros because you don't think you need any sterling, and then ten minutes later you realise you shouldn't have done that because you have a big annual sterling direct debit due next week that you'd forgotten about - you just move them all back again and no harm done.
Thinking about it, Wise is probably bad for me because it lets me get away with being too casual about stuff.
What I like about the Borderless thing is that it's so easy, the different currencies there on one screen so you can see at a glance what money you've got where, and the transfers take about two seconds. And if you're like me (which I'm sure you're not!) and you keep changing your mind and forgetting/remembering things, it's not a problem. Say you move all your sterling to euros because you don't think you need any sterling, and then ten minutes later you realise you shouldn't have done that because you have a big annual sterling direct debit due next week that you'd forgotten about - you just move them all back again and no harm done.
Thinking about it, Wise is probably bad for me because it lets me get away with being too casual about stuff.
#25
Re: Finances - where to home my hard-earned!
Why not open a Wise Borderless online account in sterling and get your pension paid into that. It will be with a bank in London.
Then, also open a Borderless account in euros.
You will then be able to transfer between your € and £ accounts with no transfer costs.
Then once the money is in euros you can either spend it from there (get a card to make online purchases, card purchases and withdraw cash from ATMs) or you can transfer it to your French high street bank account for a small fee.
Ditto any money that you choose to leave in sterling.
That is what I intend to do when I start getting my UK pension later this year. I have had various Borderless accounts for many years, both business accounts and personal accounts, and am very pleased with how well it works.
https://wise.com/
Then, also open a Borderless account in euros.
You will then be able to transfer between your € and £ accounts with no transfer costs.
Then once the money is in euros you can either spend it from there (get a card to make online purchases, card purchases and withdraw cash from ATMs) or you can transfer it to your French high street bank account for a small fee.
Ditto any money that you choose to leave in sterling.
That is what I intend to do when I start getting my UK pension later this year. I have had various Borderless accounts for many years, both business accounts and personal accounts, and am very pleased with how well it works.
https://wise.com/
Starting from May 17th 2022.
• Personal customers have a free allowance of 3,000 EUR, while business customers have a free allowance of 30,000 EUR.
• A monthly fee of 0.07% will be charged for any amount that you hold in EUR above the allowance threshold. This fee will accrue daily, starting the third day after your balance exceeds the limit, and be charged monthly from your account.
The fee only applies to any amount in EUR that you hold above your free allowance.
If you receive money into your French Wise a/c e.g. pension then it would be better to transfer it into your French account.
HTH
#26
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Finances - where to home my hard-earned!
Wise are going to introduce a fee for Euro accounts as follows:
Starting from May 17th 2022.
• Personal customers have a free allowance of 3,000 EUR, while business customers have a free allowance of 30,000 EUR.
• A monthly fee of 0.07% will be charged for any amount that you hold in EUR above the allowance threshold. This fee will accrue daily, starting the third day after your balance exceeds the limit, and be charged monthly from your account.
The fee only applies to any amount in EUR that you hold above your free allowance.
If you receive money into your French Wise a/c e.g. pension then it would be better to transfer it into your French account.
HTH
Starting from May 17th 2022.
• Personal customers have a free allowance of 3,000 EUR, while business customers have a free allowance of 30,000 EUR.
• A monthly fee of 0.07% will be charged for any amount that you hold in EUR above the allowance threshold. This fee will accrue daily, starting the third day after your balance exceeds the limit, and be charged monthly from your account.
The fee only applies to any amount in EUR that you hold above your free allowance.
If you receive money into your French Wise a/c e.g. pension then it would be better to transfer it into your French account.
HTH
I think they increased their fees recently too, it's a bit worrying when they tighten up on several things in a row, you wonder what will be next.
#27
Re: Finances - where to home my hard-earned!
I wonder if they'd twig if I have the pension paid into my Wise business account although actually I was going to have it paid in £. Better check if there is a similar thing with £ accounts, unless you happen to know?
I think they increased their fees recently too, it's a bit worrying when they tighten up on several things in a row, you wonder what will be next.
I think they increased their fees recently too, it's a bit worrying when they tighten up on several things in a row, you wonder what will be next.
The charge is just on the amount above £3k.