Tips for moving to great britain

adminonFebruary 9, 2023February 19, 2023Leave a Comment

Tips for moving to the UK

Although many the customs and language are identical, moving to the United Kingdom is still a huge undertaking filled with challenges that can be daunting and exciting. Educate yourself on some of the issues you are likely to face when you move it is a great first step in preparing for this new adventure and will help you plan to help your move go as smoothly as possible.

Housing

Find out about the housing and rental market in the UK before you leave. Rents and property prices vary greatly depending on where in the United Kingdom, you want to live. Housing costs are without a doubt the highest in central London is as usual in other major cities. If you're hoping to buy a home, less than 5 percent down is acceptable to lenders who will mortgage the remaining 95 percent. Many expat blogs recommend renting first to get a feel for an area before buying property. Websites like Rightmove.co.uk or propertyfinder.co.uk are great for checking out property deals for renting and owning.

Pets

Understand the requirements for bringing pets into the country before making travel arrangements. Britain's Pet Passport Scheme service allows dogs and cats from certain countries to enter the country without a quarantine period. Dogs must be microchipped, have a current rabies vaccination as well as meet various other requirements that are further examined with a blood sample from the pet. Details on quarantine regulations are available through the U.K. Department for Environment, Food and Rural Affairs website (see Resources).

Taxes

Estimate how far your money will stretch if you move to England. Assuming that you will be employed when you arrive there, you will want to know how much money you will have to spend on living expenses after taxes are left. Unfortunately, the issue of taxation can be very complicated, especially if you are a citizen of another country. Generally, income tax is collected by the Inland Revenue, the UK version of the IRS, at a rate of anywhere from 10 to 40 percent, depending on your income. It is possible to avoid being taxed on income from the UK and your own country, but it is recommended that you consult a tax advisor to help you do so. The government revenue and customs website, listed in the resources section, will help provide you some clarity around the issue.

But. Said Wednesday evening anyway Dr. Ernst Josef Pauw, banker at the private bank Lampe and member of the board of the Hamburger Kunstverein ibenda – as readymate of the NoRoomGallery so to speak: "Every crisis is a chance."In high competence and some optimism (one hardly believes it) he lectured and explained the connections which I will now try to reproduce: Cause of all evil is of course Georgie W. Bush (who else?) and the Iraq war, which, who would have thought it, costs 500 billion a year. (Small side note: every world empire is apparently perishing on its military budget, the Romans, the British, the Russians and now just the Yanks). And then? Needed urgently fresh money, whereby the American consumer, which hardly anyone knows, is responsible for 2/3 of the American gross national product. And now has an average of 15 credit cards, at a monstrous 20 percent interest, with which he juggles his debts. And then Alan Greenspan came along and lowered the prime rate, making credit cheaper than ever, and the housing boom lulled homeowners – in America, people don't rent, they buy – into the false sense of security that the property they bought would double in value pretty quickly. So you could earn your money in your sleep. Banks offered real estate financing loans at 5 percent interest without checking the borrower's creditworthiness. At some point, the unemployed were able to buy homes because the banks got so greedy and only saw growth rates to increase money in the needy and destitute. At some point, lending institutions bundled loans into so-called securitizations, i.e., they sold loan packages of which no one knew where the credit risks would ultimately end up – and certainly not the customers. And the press, so Dr. Pauw "only wrote and writes fairy tales".

Performance of the Landesbanken. They saw an opportunity to make 8 percent profit in the U.S. on bonds that they only had to pay 3 percent interest on in Germany – a license to print money. And then there was greed.

Eventually, Greenspan's interest rates rose again, and homeowners got into trouble because their mortgage contracts did not have the interest rate lock-in that is common in Europe. Money suddenly became scarce, there was a panic. "It's all about," the presenter said, almost evocatively, "finance is all about trust." That was now gone. Pulverized. And the regulators did not react because they were busy with the war in Iraq. The doom and gloom is now picking up steam.

Banks were suddenly stranded, no longer lending money to each other. A fatal situation. Britain's Northern Rock had made its business on short-term bonds and is now the first ever fully nationalized bank after the crash. And the fact that the U.S. government let Lehman Brothers go bust, "an incredible oversight by the Treasury Secretary," was the beginning of the end. "We're talking about incredible sums of money here, I've seen a few crises in the decades I've been in business, but this tops it all. Capitalism eats its mothers." the $700 billion bailout package hastily rushed through by the Bush administration is primarily to prevent another systemic bank from crashing. In fact, the German government, on the other hand, would also possibly get a good deal on the government guarantees of 300 billion euros, and these measures would already have a calming effect: overnight credits would be granted again and the DAX rose by 10 percent on the day of the presentation. Nevertheless 28 trillion dollars are gone, the financial crisis becomes a recession and the spectre of deflation is just around the corner, a "phenomenon that does not even have its own theory". But how it continues? "This", according to Dr. Pauw, a little messianic in front of packed listeners, "I can't tell you either". Let's wait and see.

Is it worth it to pay off your mortgage or not? We'll explain when it pays off and the different options available.

To afford a home at all, at least 20 percent of the property's value must be financed with your own capital – that is, with your own savings or by drawing down pension fund assets.

For example, if you want to afford a property worth one million Swiss francs, you would have to pay 200,000 Swiss francs out of your own pocket. A mortgage is then taken out with a bank for the remaining amount.

However, before you take out a mortgage, you should not only focus on the mortgage interest rate. Instead, address from the outset the question of whether and how you want to pay off the mortgage. There are several options: direct amortization and indirect amortization.

With direct amortization, the mortgage debt is paid off in regular installments, with the mortgage amount and interest decreasing while the burden of taxes increases.

If you opt for indirect amortization, you pay regular amounts into a private Pillar 3a retirement savings account instead of directly to the mortgage lender. This is how you eventually pay back the mortgage amount in one go. Throughout the term of the mortgage, the interest rate and the associated costs remain the same. However, the double tax advantage (mortgage debt as well as the payments into pillar 3a) often makes this form of amortization worthwhile.

Mortgage amortize or not? If the after-tax mortgage interest rate is higher than the after-tax return on assets, then it's worth paying off the mortgage.

You should ask yourself the following crucial question: What happens to the money if you do NOT use it to pay off your mortgages?

So if you don't want losses in the short term, you should use the "lying around" capital to pay down the mortgage.

However, you should keep in mind that once your mortgage has been paid off, it may not be possible to increase it again without problems. Perhaps the bank is no longer willing to do so, or the Internal Revenue Service will not accept another step-up and so the mortgage interest can no longer be fully deducted for tax purposes. The money used for amortization is tied up in the property and is therefore not available for future consumption.

Whether and in what amount a redemption is worthwhile depends on various factors and can ultimately also only be determined individually.

Looking for a strong partner to finance your real estate purchase? If so, we have just the thing for you with Mortgage Exchange Inc.

Housing

Pets

Taxes

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