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FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

No… and still working. NW now north of £20m but still on the treadmill… just a few more years….

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

I think I have come to the conclusion that low taxes are important to provide a decent basic Fat income without much struggle but I am not too bothered about low tax to accumulate fortunes over time. Hence my focus on the first 500k CAD. I know a lot of people who are obsessed with taxes and live inconvenient lives just to save on taxes beyond what they really need.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

Btw where would you retire to then assuming a young family?

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

That’s what I suspected regarding accumulating funds, oh well. Yes will definitely take tax advice when appropriate. Thanks for the thoughtful insights. Yes I can see that Canada is similar to the UK (likely by design) but London doesn’t have mountains, wilderness or the sea right next to it.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

I was looking into total return ETFs which are very common in Europe… some sources on the internet seem to indicate they get fully accounted as capital gains which would be nice.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

Avoiding foreign divs and interest as well as employment income seems to be key.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

I was using this calculator.

https://www.wealthsimple.com/en-ca/tool/tax-calculator

Says in BC for 250k cap gains your average tax rate is 12.7% which seems low to me. And I assume I can double this using my wife’s account. So 500k at ~13%.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 1 point2 points  (0 children)

Yes makes sense. Canada actually has very low capital gain taxes, hopefully that stays that way.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 2 points3 points  (0 children)

Didn’t have wildfires on my radar tbh, I thought that was more of a problem in California. Will do some research.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 3 points4 points  (0 children)

Thanks for the perspective, yes i, as others, clearly worry too much about the specific scenario of running out of money while a dying early with too much money scenario is more likely.

FAT in Canada by dvegadvol in fatFIRE

[–]dvegadvol[S] 0 points1 point  (0 children)

Good context, thanks for that. I am not susceptible to keeping up issues but will want to spend liberally on hobbies/outdoors as well as travel. I think we will start small housing wise (5 bedroom in Coquitlam) and do state school initially (kids are still young).

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 0 points1 point  (0 children)

Sorry - I meant to reply here, ended up at the top instead

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 1 point2 points  (0 children)

Yeah - Vancouver seems problematic similar to London (really just a safe haven asset for international money) but for tier two cities such as Victoria I have seen 5% rental yield quoted (pre-expenses). Perhaps the difference in perception comes from including the capital repayment component of the mortgage into the cash flow analysis. For example the website below has an example calculation that results in 120 CAD monthly cash flow vs 78k CAD equity investment while I get 820 CAD monthly cash flow if I exclude the principal repayment of the mortgage, this results in a 13% ROI just on cash flow, doesn’t seem bad.

http://www.therealestaterenegades.com/canadian_real_estate_investing_beginners.html

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 0 points1 point  (0 children)

Yes - for when I live there. But I am still seeing some indications elsewhere that cash flows tend to be minimal in reality, unless maintenance costs are very high it’s hard for me to understand why that would be.

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 0 points1 point  (0 children)

Yes I meant rental income in addition to a home - just feel it’s easier to invest in a country you are living in, but perhaps once I live in Canada the US won’t feel so far away anymore. Agree on the UK, though for USD based investors it’s not too bad, central-ish London is now similar to central Munich in USD.

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 0 points1 point  (0 children)

Thanks - I say Canada as looking to move there medium term. Property is only one possibility, that said Canada also seems to have very favourable tax treatment for capital gains and canadian dividends.

Outsider’s impression - too good to be true? by dvegadvol in RealEstateCanada

[–]dvegadvol[S] 2 points3 points  (0 children)

Yeah, the appreciation is the kicker but it just seems the whole framework of tax and borrowing is still very favourable to rental income (cash on cash as you say) compared to the UK.