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March 23, 2014 at 8:59 PM in reply to: Study shows mortgage interest deduction doesn’t encourage home ownership #772167
Jazzman
ParticipantThe one element that is consistently absent in these articles is price declines. It is completely incompatible with the current delusional mindset that home prices must always go up, or be forced up. I know there is plenty of evidence that suggests interest rates and home prices do not necessarily move in opposite directions, but it does no harm to give it a mention. If rates do go up, then homes become more affordable if prices go down. What is the problem with that? Many homes are over-priced anyway? If more inventory becomes available, whether from owners no longer being under water or foreclosures being pushed through more quickly, that could also put further pressure on prices. Now that WOULD be news worth celebrating! Perhaps then homes will be affordable in the normal sense of the word. We should be welcoming that, hoping for that, and trying to engineer that, not fearing it.
March 20, 2014 at 10:38 AM in reply to: Moving money to another country for better interest rates #772119Participant[quote=FlyerInHi]I now commute from Las Vegas because of tax reasons, I wanted to invest in property and when Vegas crashed, I had my opportunity. It’s my bonafide residence but it doesn’t feel like “home.” I’d rather be in HI, but alas one must make sacrifices.
I read some about Chile but never visited. There is a growing tech industry serving Latin America. Chile seems to have a good future ahead. Great climate.[/quote]
A commute to SD? Las Vegas did have some good deals two years or more ago. It’s hard now to make the numbers work, but I’m hopeful there will be some sort of correction there. Funnily enough, the number one destination for Hawaiians, both when moving to the mainland, or on vacation is Las Vegas. I can’t figure that one out. Maybe there are parallels???March 19, 2014 at 5:32 PM in reply to: Moving money to another country for better interest rates #772099ParticipantI’ve heard Singapore is expensive. The Switzerland of the East. By across the border, I guess you mean Malaysia? Have friends there but KL is hot and not cheap either. Dubai is just an address for many I guess. At one time Manaco apartments were empty with just several telephones on the floor so I’m told. Cyprus and Malta are Med islands and offer an alternative. Chile get good expat press. South Africa is an amazing country but security is an issue.
March 19, 2014 at 12:14 PM in reply to: Moving money to another country for better interest rates #772092ParticipantThat’s right, I bought a second home in the Dordogne. If I left the US, I’d probably go to the UK. It’s as close as you can get to living in the US in term of tax, business environment, legal system, etc. The Antipodes are closer to a west coast life style. Remove the unfavorable French tax environment, and I’d choose the Cote D’Azure which is still the number one destination hands down. If I could create the perfect place, it would be a small country that minded its own business, had health care, a low tax environment, warm weather, rich culture, and lived within its means. I’d be watching some of the Eastern European countries like Slovenia, and Croatia to see how they shape up in a decade or two. Mexico, Costa Rica, Belize, Panama all suffer varying degrees of security risk. Bali and Dubai are interesting possibilities. Tax havens such as Bermuda, Monaco, Andorra, etc are great if you are super rich, but are mostly geographically isolated with the exception of Monaco, where you have to live in a condo. Many countries are now offering residency for cash. Hawaii is the US, but is not contiguous so in a sense I have left the US. It is, I believe, the only state where whites are not the majority. Asians out number whites 2 to 1, and it makes for an interesting, exotic mix. The life style is fantastic, and has all the benefits of being part of the US. I paid $400 property tax last year. Food, electricity, water are expensive though. Honolulu is a nice little city and Oahu has more choice than the other islands. Since there is no perfect place, splitting one’s time between two places is a possibility.
ParticipantThe link, or video, appears to have changed. This one is better. The last one seemed more like a conspiracy theory.
ParticipantCompelling. Where did they get those taped telephone conversations? Many respected US academics believe that Putin has been pushed up against a wall by what he feels is a drive to put NATO on his doorstep. He apparently became disillusioned by the lack of reciprocity in his dealings with West, which made him angry and might explain his more recent foreign policy stance (eg Syria). But I think this is a geopolitical game of chess, as the Ukraine has no natural resources, and presents no terrorist threat. Energy, however, passes through it from Russia to Europe, which might explain Europe’s hesitance.
Crimea is the elephant in the room. It is an autonomous region within the Ukraine, originally inhabited by Tartars who are Turkic people. The country really belongs to them if anyone. It wasn’t that long ago that Crimea was a part of Russia, and it’s strategic importance can’t be that great (IMHO) since whoever controls the Bosphorous, controls the Black Sea. If most of the inhabitants side with Russia, they won’t give Ukraine an easy time if it remains part of the Ukraine. So why would they want it?
It’s ironic that the influx of eastern Europeans into western Europe has given rise to nationalist parties in the latter.
March 12, 2014 at 10:10 AM in reply to: Moving money to another country for better interest rates #771795Participant[quote=earlyretirement][quote=Jazzman][quote=earlyretirement]I know this isn’t applicable to the OP as you aren’t an ex-pat but I thought this would still be interesting to post.
IRS filing for US expats is antiquated, which is why so many Americans living abroad don’t bother with it. I’m sure the IRS would agree and welcome changes to the requirement. The allowance before you owe Uncle Sam tax is reasonably generous, and there is probably no requirement from your foreign employer abroad to provide the IRS with data, so you might be able to get away with filing your own returns. If leaving the US for good, watch out for the exit tax.[/quote]
I agree it’s antiquated. I guess you could complain but who would listen? Yes, the allowance as you mention (foreign earned income tax exclusion) is quite good. $97,600 for a single person or you can legally structure it if you are married and own your own business to double that to $195,200 if you get 2 salaries for you and your spouse.
I lived abroad for many years but I’d never leave the USA for good…. we have it too good here compared to other countries.[/quote]
Living abroad broadens one’s horizons, and can make you see your home country in a different light. I’ve lived in the US for ten years and in other countries for shorter periods. That has lead to a curious unraveling. I tend to see not so much countries, but enforced boundaries (borders if you will), often through wars, organized by a collective group bound by laws that a few so-called elected (or otherwise) individuals have drawn up. The US is a perfect case in point. A young country that imposed the rule of law and property rights on a land, previously without those structures. The US is a legal entity, with a cultural focus on business and the resulting life style. Certain freedoms are a part of that package, helping to inspire a love of one’s country, that the Founding Fathers knew was needed to glue together a multicultural society. You cannot love a country. That is an illusion.
The post war decades in the US seemed very much in keeping with the ethos of individualism, egalitarianism, and evenly spread prosperity. More recent events, however, seem to echo pre-WWII periods, which have eery parallels to much that was (is) wrong with Europe, the wellspring of earlier American historical development. Whether you believe social thinking evolves or not, old models that were once the backbone of a society can erode bringing with it change that breeds conflict and social unrest. Perhaps, the only thing that keeps mankind on his toes is the certainty of uncertainty.
Sometimes I feel the only thing keeping me here is the tax climate, and the Hawaiian climate:) Like you, I would never give up my (non-US) passport, but that is as as much for sentimental reasons. The Bush tax cuts could of course be reversed, and if health care costs increase as is widely anticipated, that could be the tipping point. The lack of investment opportunities seems universal, but when all said and done, you go with where your spirit and wallet feel the most comfortable. There is no “national” preference in my view, just survival.
ParticipantAs a landlord you would normally pay HOA fees, property tax, and insurance directly yourself. I’d think it highly unlikely you could hold your PM or tenant liable for late payments.
March 9, 2014 at 10:05 PM in reply to: Moving money to another country for better interest rates #771713Participant[quote=earlyretirement]I know this isn’t applicable to the OP as you aren’t an ex-pat but I thought this would still be interesting to post.
IRS filing for US expats is antiquated, which is why so many Americans living abroad don’t bother with it. I’m sure the IRS would agree and welcome changes to the requirement. The allowance before you owe Uncle Sam tax is reasonably generous, and there is probably no requirement from your foreign employer abroad to provide the IRS with data, so you might be able to get away with filing your own returns. If leaving the US for good, watch out for the exit tax.
ParticipantAsking price really doesn’t mean very much. Check the sales comps, how long homes have been sitting, list to sales ratios, and price reduction history. As to a bubble, prices have been bubbly across the board. Whether you wish to call it a bubble depends on your definition. Perhaps the more pertinent questions are why, affordability, and how sustainable?
March 6, 2014 at 7:40 PM in reply to: Moving money to another country for better interest rates #771621ParticipantCurrency risk is one the biggest investment risks you can take IMO. Since you have close ties to India, you can probably monitor those risks more carefully, and if you plan on spending time in India, it is then your main currency, so doesn’t matter. Everbank are pretty good at answering questions, and will call you back the next day. You are right about interest rates, and it is the bain of my life. I really wish there were alternatives, but apart from carefully researched real estate and waiting, I don’t see much else. You could probably earn more by switching to a cheaper auto insurer or shopping at Costco than investing. Spend less and save more to counter the effects and finger the central banks. I’ve had several foreign banks accounts over the last ten years and never been audited (touch wood).
ParticipantUCGal, I think it really depends at what stage of life you are. For retirees dependent on income, fixed income and capital preservation is important. If you you some way from retirement, you have time to recover the knocks. I don’t blame anyone for selling out, or sitting it out, or not even bothering with stocks at all. In fact, only half of Americans invest in shares, and even less in other countries.
Participant[quote=earlyretirement]
Like some, I haven’t gotten in the stock market as heavy as I wish I did watching the way it’s gone on a tear.
[/quote]You can’t beat yourself up about this. A lot of FAs got it wrong too. Things will probably/hopefully get back to normal, unless we’ve forgotten what that is. If you can’t buy at a good price then don’t buy. Better to cut back on expenses than take risks. Advisers with 20:20 vision and “I told you so”, “stay in for the long haul” mentality are just doing what they do; protecting their livelihoods. I very much doubt many anticipated the run we’ve had.
Putin and Russia seem to be getting a lot of media attention. Perhaps not surprising, but it’s the kind of fear-mongering attention that is curious. It has re-ignited a cold-war mentality, which is strange considering it is Russia that is under pressure here. People like John McCain seem incapable of critical thinking vis-a-vis US foreign policy. Things never resolve themselves especially when both sides of the argument remain sanctimoniously dogged in their self-righteousness. The way the Republican party is using this episode to slam Obama is so transparent and futile.
Putin does not want to lose the Ukraine, and he may be using Crimea as a side show because it is his strongest base from which to launch a risky strategy. I fail to see why Sevastopol is so strategically important, since the Turks control the Bosphorous. If the new Ukrainian authorities are going to fight over Crimea, then they start to look suspicious. The other question is whether Europe wants the Ukraine. It turned down Turkey and has strict criteria for joining the club. The poor state of the Ukrainian economy means it will have to go it alone on the path to improvement. The Ukraine has more in common with Russia that western Europe. It uses a cyrillic alphabet and share many words with Russian. Kiev, with its beautiful churches with cupolas are reminiscent of Russia, and is mostly orthodox as well. However, they are defiantly independent as recent events show, and have every right to choose their own destiny. I think the best the West can do is be there for them, but not force Putin into a corner over this.
Participant[quote=spdrun]In the Northeast, where the violent Gods, Foreclosius and Shortsalius are running rabid once again.
http://www.bloomberg.com/news/2014-02-26/foreclosures-climaxing-in-new-york-new-jersey-market-mortgages.html%5B/quote%5D
Seems like NY and NJ aren’t the only states that have ruffled Foreclosius’s feathers. Foreclosure starts jumped a whopping 57% in CA last months according DrHB http://www.doctorhousingbubble.com/california-foreclosure-starts-surge-banks-gearing-up-nods-banking-foreclosures-california-middle-class/ -
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