There seems to be a general consensus of ill-informed opinion in the media at the moment, and that’s that because we’re in a recession people have put off their dreams of moving abroad. Actually, the truth is so far from this belief! Because job security is a thing of the past, ever-inflating house prices have succumb to reality and logic, the British economy has been sunk and things aren’t likely to get better any time soon, so more people are deciding that actually, they’d be far better off abroad.
People aren’t chasing a dream that the roads abroad are paved with gold, rather they are seeking to take their reality with them when they relocate, and simply go in search of a better work life balance in a place where the weather’s better and people are generally more positive about life!
If this sounds like you, then you might like to know how expats can save money when living abroad, so that not only will you escape the doom and gloom of Blighty, but you can make sure you’re not worse off as you soak up the sun.
Saving Money Abroad on Property
If you move abroad and keep your property in the UK, you can rent it out to try and pay towards your mortgage costs. If you’re still worried about meeting your mortgage obligations whilst you make the transition overseas you can perhaps ask your mortgage company for a mortgage holiday. Some companies will allow you a complete break, others will allow you to make interest only payments. It’s a case of ‘if you don’t ask you don’t get,’ so do ask rather than struggle or miss a payment – but do remember that any deferrals you make will perhaps lengthen the time you have to pay your mortgage for, and also increase the amount of interest you finally pay back.
If you’re renting a property abroad make sure you negotiate on your rent up front. Also, if you’re prepared to sign a longer rental contract, sometimes landlords will allow you a cheaper monthly rent. Prove how good a tenant you are with references, and perhaps even offer to keep communal areas tidy for a reduction in your rent. Consider subletting empty bedrooms if you’re allowed, and know that a good tenant is worth their weight in gold, so make yourself into the perfect property person and get your landlord on side so you get the best rental deal.
If you’re considering buying a property abroad take time getting to know the lay of the land – both literally and metaphorically. The longer you live somewhere the more places and people you know, the more likely you are to find or be told about a bargain. You can also learn about how the auction process works abroad after you’ve been living there a while, and you can keep an eye on local developments and changes to spot an opportunity ahead of the mass-market.
Saving Tax and Beating Bills
As an expat you’re in a very good position if you want to potentially save tax on your savings and investments – you have what’s called the ‘expat advantage’ in financial circles, which means you can often make the most of the wonderful world of offshore. Of course, your options are limited by your own personal circumstances including where you’re tax resident for example, but you have absolutely nothing except a couple of hours of your time to lose by speaking to an expatriate financial adviser to see how best you can structure your financial affairs to make them 100% taxation efficient. Get in touch if you want to know more.
You needn’t ever have a phone or postage bill again – you can use free services to keep in touch with friends and family back home such as Skype for example. You can even use it for instant messaging, and set up a webcam to see who you’re communicating with.
You needn’t pay out for an expensive overseas SKY television package either – you can have access to so much free television over the internet nowadays with the likes of the BBC and ITV having iPlayers where you can catch up with all your old favourites - from Coronation Street to Eastenders. Now that’s a huge saving! And if you’re a sports lover, you can guarantee there’ll be a pub somewhere near you that has an international license and which shows the leading sports events on big screens – it’s not just in the UK that we’re football crazy!
Increase Your Income Now You’re Living Abroad
And finally, if you want to make more money now that you’re living abroad check out our recent article entitled ‘ten ways for expats living abroad to make more money!’ Whether you want to teach, be a hostess with the most-ess or retire to your home office and support the family via the internet, the article has some great ideas for you to boost your income.
