invest in HuaHin?

[NikkiSixx]

I am a farang married to a Thai currently living and working in the U.K.
I am strongly considering taking my equity out of my small property business(about100,000 quid) and investing in Hua Hin.
Should I a:Buy or rent, bearing in mind the 100K would have to include our living arrangements, b: invest in a small bar/guesthouse, or c: buy one or two properties and wait for the market to snowball and live off the rent?
basically, is it possible for my wife and I to make a life in Hua Hin on such relatively small initial capital?

[Digger]

Nikki,While I may be going against the flow of further posts that you may receive on your questions i would really advise you against selling up all your assets/property in your home country in order to make a move to what is really a foreign country even though you have a thai wife.Best that you rentout initially what you own in UK even if it barely covers your mortgage costs.Come to Thailand and rent which is not overly expensive and see how you get on, if it all goes pear shaped you have a bolt hole to go back to.I have many friends who have sold up and invested in a bars or guest house and are now strapped for cash after a few years.My great friend Wij of london lounge fame sold his place in Aylesbury a good few years ago and invested in his bar/guest house which he has now leased out on quite a fragile deal but his real problem is that he cannot now get back into UK market at all even if he managed to realise some serious money for his place which is unlikely and deep down he would love to slip back to Uk and get back to steel erection which was his former trade.There are certainly a few people who have done well in Hua hin but there are many who have fallen by the wayside,my good friend Willo wilson is a prime example.Certainly prices are moving up with property in H/hin but if you live in it it takes up all your capital.Really need to do serious consideration here.Everyone wants to live the dream but reality shows a different picture.Need to really think this move out well,before you take the plunge.

[Jaime]

Nikki,

Good advice from Digger who has summarised things quite neatly - do not put all your eggs in one basket as the saying goes. Nothing much more to add from me except to say that it could be possible to 'buy' a property for much less than your 100K sterling and still rent out your UK property to generate the income Digger describes. It depends on what type of property you want really.

As Digger illustrated, there are as many losers as winners and you don't want to end up in a Theatre of Pain do you Nikki?

[JW]

Hi Nikki,

I agree with digger and Jaime, even though its my business not to. Maybe you could release some equity in the uk and invest in a nice property here for about 50 grand. It is hugely buoyant right now but i feel to put everything here is just a bit too much of a risk. As digger suggested, renting for a extended stay to really get a feel for the available opportunities has got to be the most sensible way forward.
PM me if you want any other info.
Cheers
JW

[tuktukmike]

If you decide to move out here and sell up in the UK then just bring enough for a year or two.

Put most of your money into a long term investment account, then come here and rent a house for a year or two.

This will allow you time to decide if Thailand is really the place you want to be.

If you decide you are happy here then you can put your finances in order and maybe buy a house, remember it is still cheap to rent here.

You may also like to check out other areas to live other than Hua Hin as at the moment it is changing fast and not the sleepy place it used to be.

There are some really good deals to be had south of here with land prices at much more reasonable prices.

Mike.

[Guess]

All a lot of good sense here.

I was in the position that I did not really have enough cash to buy a house in a reasonable area in Europe.

As you already have a property or business (I am not quite sure from your posting which it is) then one option to consider is renting it out and living here on the rent. You budget of course depends upon your expected life style.

My wife and I lived in a clean house in Hua Hin, eat and drank whatever we wanted and went out when ever we wanted for about six months on a budget
of 20,000 baht per month.

There is a property boom here at the moment but it can not be sustained forever.

After you have spent about three years hear and you are still certain that you want to move you still have the option.

When you get here start thinking Baht asap. I have seeen so many fall by the wayside for keep justifying purchase by sayin "it's only 50 Bucks" or "it's only 30 quid". When all those onlys are added together you will eventually run out of cash.

Ther is a bus load of penniless Farangs leaving Pattaya everyday.

[NikkiSixx]

Alot of helpful advice here for me to make careful consideration, thanks guys! At the moment its not possible for me to release any equity, so by the time I can, I'm hoping it will be alot more!!
Thanks once again for your helpful input.

[simonrogers1975]

One other thing that you could try is to rent out your property. If you mortgage has already been paid off then you would benefit from a tax-free income. I say this because you will be out of the country for more than 180 days, therefore all income is tax-free.

In addition, best advice people have already suggested but property values (in absolute terms not%) are far greater in the UK than any other country regardless of what you read. This is due to the lack of land in the UK and the greater number of foreigners being allowed into the country.

Kept the house in your name, keep the house in the UK.

Good luck

Simon

[lomuamart]

One other thing that you could try is to rent out your property. If you mortgage has already been paid off then you would benefit from a tax-free income. I say this because you will be out of the country for more than 180 days, therefore all income is tax-free.

In addition, best advice people have already suggested but property values (in absolute terms not%) are far greater in the UK than any other country regardless of what you read. This is due to the lack of land in the UK and the greater number of foreigners being allowed into the country.

Kept the house in your name, keep the house in the UK.

Good luck

Simon

Well, I'd be interested to know where the idea of no tax comes from if you've been out of the UK for 180 days.
I've rented my property for the past 8 years and that is how I stay in Thailand.
I'm regestered as a Non-Resident Landlord living abroad, which means that I can't be in the UK for more than 90 days in any tax year. If I'm over that I will get crucified, tax wise.
Sure, I get huge benefits, under this scheme, but only to the extent that I have to pay tax afterwards. It's earned income from property in the UK. Schedule A Income Tax. Even if my annual tax liabilty is 200 pounds, there is that liabliity.
I'd be far more interested, as you've said you're an accountant or something, with your views regarding CGT and primary residence, on the sale of it.
If you can advise, I'd be obliged as I'm off to the UK in a few days to, amongst other things, investigate this.
So, to the original post on this thread- yes definitely think about renting out property in the UK to live here. When you need to buy these days, most people will have to sell their assets back home.

[simonrogers1975]

I am more than happy to have a section here that deals with accountancy / tax advice, what do you think. Free of charge before you think I am in it for something out.

In regards to capital gains, it is your primary home, no tax is payable on this house as it is your only house. I appreciate that you are renting it out but it never becomes a business asset.

Answer to the days ruling:
Working abroad

2.2 If you leave the UK to work full-time abroad under a contract of employment, you are treated as not resident and not ordinarily resident if you meet all the following conditions

your absence from the UK and your employment abroad both last for at least a whole tax year
during your absence any visits you make to the UK
- total less than 183 days in any tax year, and
- average less than 91 days a tax year. (The average is taken over the period of absence up to a maximum of four years - see paragraph 2.10. Any days spent in the UK because of exceptional circumstances beyond your control, for example the illness of yourself or a member of your immediate family, are not normally counted for this purpose.)

2.3 If you meet all the conditions in paragraph 2.2, you are treated as not resident and not ordinarily resident in the UK from the day after you leave the UK to the day before you return to the UK at the end of your employment abroad. You are treated as coming to the UK permanently on the day you return from your employment abroad and as resident and ordinarily resident from that date.


Send me a pm if you wish to know specific tax aspects to you

Many thanks

Simon

[Lev]

I am more than happy to have a section here that deals with accountancy / tax advice, what do you think. Free of charge before you think I am in it for something out.

Not a bad idea if we have a professional fully proficient in Thai law, taxation and accounting regulations and systems, it would be a valued addition to the board as its a minefield out there.

[simonrogers1975]

I may be one step ahead here. I have already got the complete law (from a lawyer who is doing a similar thing to me) and I now have the complete tax regulations from the government.

What does everyone think to have this service, again free? Detailed and complex workings would of course incur a fee but general enquiries I am more than happy to help.

Cheers

Simon
(ACCA & MBA by the way just in case people needed to know my qualification in this area)

[Lev]

We would probably need to meet up to discuss it further.

[simonrogers1975]

I am coming to Hua Hin for more market research on the 23rd of September. If you decide to throw a meeting, please let me know. I am happy to share ideas and take suggestions from others.

If you wish a private meeting about the tax / law again please let me know. Indeed I am more than happy to get involved with any commercial activities including the web site that you run so well.

I am serious about making a good go out there, any my offerings are equally serious.

Again let me know your thoughts.

Simon