Income suggestions

Old Dec 8th 2019, 9:40 am
  #31  
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Default Re: Income suggestions

Originally Posted by EwanD
Damn... I certainly won’t be building any tower blocks...
However, I have recently been thinking about purchasing a condo in Manila. I think it’s ultimately a safer investment considering I’m not overly knowledgable on construction. The idea is to find a unit close to office buildings so that the unit can be occupied by multiple tenants as a sort of boarding house. I know a few people who are renting like this as it’s a cheap option for lower income workers. They’re very much in demand as a lot of people can’t afford to rent somewhere of their own and a plus for me as I can own the unit myself.
A brit friend of ours has just let go a condo in Manila because of the tax implications in the UK. He already has a condo in subic so do not now if it only effects you third property onward . Something to check into.
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Old Dec 8th 2019, 10:13 am
  #32  
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Default Re: Income suggestions

Originally Posted by Gazza-d
A brit friend of ours has just let go a condo in Manila because of the tax implications in the UK. He already has a condo in subic so do not now if it only effects you third property onward . Something to check into.
‘the tax implications in the UK’? that’s an interesting thought. I’d imagine he’d be living in the UK at the time? With the ownership of a condo I would be living there permanently in order to maintain the unit, if I moved back chances are I’d sell it before doing so.
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Old Dec 8th 2019, 4:13 pm
  #33  
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Default Re: Income suggestions

Originally Posted by EwanD

‘the tax implications in the UK’? that’s an interesting thought. I’d imagine he’d be living in the UK at the time? With the ownership of a condo I would be living there permanently in order to maintain the unit, if I moved back chances are I’d sell it before doing so.
There would not be uk income tax implications if you are non resident in the Uk for tax purposes. As the asset is earning income in the Philippines, you would be liable for local income tax and capital gains tax on disposal.

AS for capital gains tax in the UK on disposal, yes there would be a liability if a Uk resident. there maybe offset against local CGT as I believe there may be a double taxation treaty with the UK. Something to be looked at.

CGT here is 6% flat against the sales value as opposed to any gain. just a badly worded sales tax. In addition this is an upfront tax paid before receiving the proceeds of the sale!
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Old Dec 8th 2019, 7:35 pm
  #34  
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Default Re: Income suggestions

In the UK you are only allowed one property free of capital gains tax, therefore one of the properties in either the Philippines or UK would attract capital gains tax. When I next see my friend I'll ask him what the problem was. He has property in the UK , a condo in Subic, it was the third property a condo in Manila he pulled out of when it came time to pay for it.
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Old Dec 10th 2019, 12:12 pm
  #35  
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Default Re: Income suggestions

Originally Posted by Gazza-d
In the UK you are only allowed one property free of capital gains tax, therefore one of the properties in either the Philippines or UK would attract capital gains tax. When I next see my friend I'll ask him what the problem was. He has property in the UK , a condo in Subic, it was the third property a condo in Manila he pulled out of when it came time to pay for it.

There is no capital gains tax on a UK property provided it is your place of residency. There is a certain amount of time that you must have lived in the property to establish it was your residency. We own a buy to let and should we decide to sell capital gains tax Will have to be paid as we have never lived in the property. Eventhough we live permanently in the Philippines I am still required to submit a self assesmemt return every year, due to rental income and investments.

Reguarding purchase of a condo, in my opinion it is not a good investment. Better put your money in a time deposit, we get 3.75% interest and can very the time of maturity from as Little as 30 days ( Eastwest Bank). Similarly you could ivest in Philippine Government bonds although the rate of interest is not good at the moment. The last bonds we bought had a 4.1% yeild.

Renting out condos is not easy, the market is saturated. Any rent would have to take into account the Service charge, which could be high. Should you wish to sell a condo it is very difficult to sell used units as there are so many new units being built. My advice would be to spent a long period of time in the Philippines, listen and learn how things are done, then make a decision. Above all take your time, I have made mistakes by being to hasty, and impatient.
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Old Dec 10th 2019, 6:48 pm
  #36  
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Default Re: Income suggestions

Originally Posted by nonthaburi
How much money are you looking to invest in the Philippines and what's your expected return?

Have you considered buying property in the UK and renting it out? Might be a while lot easier and less hassle, and it's yours.

Do you have a degree? If you do aTESOLcert there are plenty of Chinese companies out there for teaching online that will pull in a couple of thousand dollars a month without too much difficulty.
That wasn't my experience in London. I had 2 apartments in Docklands, and in 2 years I never made a penny. Even assuming you can find decent tenants it's an uphill struggle. They were both rented out furnished, one of them was brand new with all new furniture and appliances, but that didn't stop claims from the tenants each and every month claiming that something or other had stopped working. Was always having to pay plumbers and electricians bills, and by the time I'd paid the management fees and income tax, it just wasn't worth it. Plus the sheer hassle was driving me nuts.
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Old Dec 10th 2019, 7:02 pm
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Default Re: Income suggestions

Originally Posted by David Mashael
That wasn't my experience in London. I had 2 apartments in Docklands, and in 2 years I never made a penny. Even assuming you can find decent tenants it's an uphill struggle. They were both rented out furnished, one of them was brand new with all new furniture and appliances, but that didn't stop claims from the tenants each and every month claiming that something or other had stopped working. Was always having to pay plumbers and electricians bills, and by the time I'd paid the management fees and income tax, it just wasn't worth it. Plus the sheer hassle was driving me nuts.
i have to agree, although in 15 years my apartment has only been empty 1 month ( I asked the tennant to leave). There have been various maintainence problems, usually small although a new boiler to conform with new regulations was not cheap. The main problem now is the reduction in tax relief of the mortgage interest.
Unfortunatly, I may have to sell the apartment next year because my state pension is due then. The state pension, investments, and the profit on the rental income will mean I will be way over the tax free allowance and will have to pay tax.
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Old Dec 16th 2019, 3:58 am
  #38  
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Default Re: Income suggestions

The whole tax issue is a lot to think about. However that has cleared one thing up, not having to deal with UK taxes if I;m not living here anymore. Also, thank you for the investment ideas as it would be a good option, although i would prefer to look into that whilst living there and settled.
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