Anyone with a mortgage overseas? What interest rates are you paying?

[Damap]

The scary part is that people think the US is recovering. Wait till the reality hits their economy.
BOOM!

[Anthonyacat]

That really depends how you define Western. A large swathe of Europe is still struggling enormously. Italy is starting to pull through, I haven't heard much about Spain recently. Yes the US is "Growing" strongly, but is it truly a recovery? What about when they start to reverse their money-printing program?

Contrary to your earlier post, the Euro has not been involved in Quantitative Easing (money printing) until very recently, in fact it may not even have started yet. While the US has pretty much finished theirs. Don't think much QE happened at all, globally, in January.

Even China is slowing down. That's if you believe their figures at all. A lot of their growth can potentially be put down to fraud. If you investigate the total amounts China says they're exporting to Hong Kong, and the total amounts HK says they're importing from China, there's a massive difference. Either very poor reporting mechanisms or fraud.

The world really isn't economically stable yet. Just seems that way from New Zealand.

[Eugene]

If you borrow overseas and currency movements result in a gain, you pay tax under NZ law. I know this from a friend but not how it works - accrual rules perhaps. He is living in NZ and has a UK loan and he got thoroughly wacked.

[Damap]

Chinese fraud, (shock, horror, surprise)
Their economy and business world is almost based on dishonesty.

[PTILoveYou]

Chinese fraud, (shock, horror, surprise)
Their economy and business world is almost based on dishonesty.

Most developing countries are like that, that's why the still have the stigma of being called a developing country.

[Damap]

Not really. If you read Thick face black heart it is an Asian issue. It's only a problem to us in the west. In Asian culture basically dishonesty is a virtue. I gave up doing business there it is just about impossible.
Once I read that book I realised I would never be dishonest enough to stay in business in Asia.
Corruption is a problem in developing nations more than dishonesty fuelled by poverty and greed.

[BigDreamer]

Interesting thread. I have been looking into cross border tax laws for a while now and it is such a complex area that I have avoided investing overseas.
Damap, good on you for having guts to invest overseas. I feel like I need to understand all the tax implications before I take that leap.

[Damap]

Actually as long as you stick to double tax treaty nations it's simple. For USA for example you file a tax return in the USA. If you paid tax it comes through as a credit in New Zealand. There's a bit to know but it is not rocket science as they say.
I think we have very good tax positions compared with most other western countries.

[Shane D]

Gary,

I'm getting a 2% mortgage out of Taiwan. I use my apartment in Taipei as security.

Shane

[Damap]

Yep that's the way to go Shane. Then you can buy better quality homes!

[HermanZ]

Or You could Try Denmark

DENMARK OFFERS NEGATIVE INTEREST RATE MORTGAGES!!

According to DR dk, For the first time a Danish mortgage bank, Nordea Kredit, issued a mortgage with a negative interest rate, Jyllands-Posten’s corporate site Finans.dk Friday .
This means that Nordea Kredit this week have had to pay interest back instead of charging them to a handful of customers, says housing economist at Nordea Kredit, Lise Nytoft Bergmann for Finance.

Denmark’s inflation rate is near zero.

https://confoundedinterest.wordpress.com/2015/01/31/danish-blues-denmark-offers-negative-interest-rate-mortgages/

Not sure how that works!!!
HermanZ

[chrisgoh]

I'm getting a 2% mortgage out of Taiwan. I use my apartment in Taipei as security.

Good strategy.

[Shane D]

Yep that's the way to go Shane. Then you can buy better quality homes!

Damap and Chrisgoh,

Yes I have used mortgages on that little apartment in Taiwan to buy a few properties over here. Anytime I get any windfall or bonus (plus the rent from the tenant), I aggressively pay down the Taiwan mortgage then re-mortgage when I need a good deposit for a purchase back here in Auckland.

It has been the cornerstone of my investing strategy here in NZ really.

Shane