You Really Can Physically Create Wealth Offshore: Part 1 of 2

Recently, I wrote an article entitled “As Safe as Houses” for The Q Wealth Report. It’s really about how people can successfully use their existing assets to live a much healthier and wealthier lifestyle in the offshore paradise of their choice. I will summarise it here for your benefit.

You probably don’t need me to tell you that telecommuting and international early retirement is easily achievable from a financial point of view, if you are moving from one of the more expensive countries like the UK. Ubiquitous broadband internet makes it practical from a business point of view. Friends and family? Well how much do you really see of them anyway? How about sending them tickets to visit you and spend some quality time with you instead? International experience is really a must these days for kids.

Just as last week I defined “wealth” in its broadest sense, to encompass wellbeing and even the good of the community, in my blog I will also use the word “offshore” in its widest sense – simply meaning outside your country of origin. I know that some in the finance community don’t like the O-word anymore, preferring “International Finance” or somesuch instead. But I am something of a traditionalist, and am proud to be a writer and now blogger on offshore finance matters. I don’t mean to upset anybody.

A lot of Brits have traditionally moved to France, Spain and Italy. These are not tax havens in any way, but nevertheless, the move and the resultant loss of UK residence can create plenty of opportunities for tax planning. Doubly so if you are involved in any kind of information business, selling know-how (consultants, writers, programmers, marketers etc) or even selling physical goods as long as you don’t need to handle them.

The point about better, cheaper lifestyles abroad has certainly not been lost on the British population at large. To quote from Penelope Wise’s blog last December here on lowtax.net:

The report that no fewer than 3.8 million British and Irish own overseas properties means that at least 15 million of us have access to a bolt-hole, allowing about four people to a family.

Even more stunning is the estimate that this market is growing at 13% annually. This means that 28 million of us will have access to overseas properties by 2012, and the entire population will have left by 2020.

In more recent times people have really started to see that by moving not just their business but also themselves offshore, the tax savings alone can basically pay for the cost of living abroad, hopefully leaving a sizeable chunk of capital to invest! It may not be easy to sell your house anymore, but it’s never too late to start trying.

So, you’ve got living expenses covered and a nice chunk of capital to keep in safe, conservative investments for a rainy (or sunny) day. Now what if you can also make money on your new, offshore home?

The good news is that, despite the recession, you can! There are some places in the world where property values are still going up and are likely to hold up.

Also, you can finance your offshore property purchases, thereby benefitting from gearing. Multi-national individuals who earn their income in one country and live in another are becoming much more the norm, rather than the rare eccentrics who scared bankers so much just a few years ago.

So what are the factors that keep house prices on the up in a few select places, when all around us, we see prices stagnant or falling?

That’s what I’ll be covering in part 2 of this article, next week! Watch this space. In the meantime, if you would like a sneak preview of my ideas, you can go to www.QWealthReport.com and click on the “Free Sample Report” download link, to read the article As Safe as Houses?

Peter Macfarlane is joint editor of The Q Wealth Report an established newsletter dedicated to informing readers about creating, protecting and growing wealth in a secure offshore environment. It also covers international living, banking, retiring and investing. Visit www.QWealthReport.com to see more.