retire overseas

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3 Paradise Boltholes Where Aussies Can Live Like a King on the Cheap

escapologist.com.au

RETIRE OVERSEAS~with EASE~

2 THE ESCAPOLOGIST RETIRE OVERSEAS WITH EASE

Who wouldnt want to live like royalty?

Theres no doubt about it. Australia is the best country on earth. But is it the best place on earth to retire? The answer is no. Ill explain why in a moment. If youre not convinced you want to live in one of the most expensive, regulated and taxed nations on earth, where do you go?

In this report Ill tell you about the 3 best places on earth I think you could to retire to. Not that you should immediately pull up your roots and hightail it out of here. For most people, staying in Australia is the right thing to do. But for some people, retiring overseas is an extremely wise, calculated and successful decision. Even if it isnt for you today, moving overseas might still be a good idea one day. So why not become familiar with some enticing options? Especially considering what Australian retirees face at home.

Why You Should Consider Leaving

First things first. Australia serves the worlds most expensive beer. The Economist magazine claims we are in second place, but a recent trip to the number one country confirmed Australians are worst off. The same goes for hard work too. Australias tax system is the second most progressive out of OECD nations after the USA. That means higher income earners are taxed proportionally more than lower income earners. And now that the tax free threshold is raised, its likely were number one.

Here are some other results from the Economist Intelligence Unit:

THE cost of living in Sydney, Australia, is close to 50 per cent higher than in New York, according to a new survey that illustrates the painful side effects for residents living through a once-in-a-century mining boom.

The report shows that five cities in Australia - a country renowned for its fine wines, robust economy and great outdoors - now rank among the worlds 20 most expensive to live in. Cities such as Adelaide, Brisbane and Perth, for example, are costlier than global metropolises such as London, Hong Kong and Rome.

The underlying reason for all this is that property in Australia is vastly overpriced. The costs of this filter down into everything else. For example, retail shops on the high streets must pay high rents. They pass this cost onto you in the form of higher prices for everyday items and clothes.

For the most part, higher wages in Australia offset the higher cost of living. But when you retire, everything changes. You no longer earn the income that makes life in Australia barely affordable. If you want to maintain your standard of living in retirement, or even live more comfortably on less money, there is one very direct option.


The Big Decision

The decision to retire overseas is one that you want to get right first time. Getting it wrong can be financially damaging and emotionally draining.

You need to be informed about where, why, when and how you move. Getting the how, when and why of your overseas retirement right is just as important as the where. You should think seriously and deeply about all those questions before making any move. In this report Ill focus on the where and introduce you to some locations you may not have thought of.

One important step is to establish the criteria you will make your decision on. What do you care about? Exclusively emotional decisions arent a good reason to move.

Your decision to retire overseas or stay in Australia should be based on rational factors as well. It definitely shouldnt be a BAD financial decision. You want to experience the relief of a good choice when you get there. You dont want the disappointment of an emotionally charged decision that you didnt think through. That said, moving to another country can be the most emotionally gratifying thing you ever do.

Important Questions

What kind of climate do you want to live in?

How comfortable are you living far away from Australia?

Do you want to live like a king in a cheap country or just live well in a more developed one?

What do you enjoy doing? Exploring cultural and historical interests, keeping fit, staying within your comfort zone?

Do you want to live in a country with lower taxes and a freer life? Are you interested in taking up a second citizenship?

Do you want to travel to interesting places beyond your new home in your retirement? Its not good retiring to New Zealand if you want to see Europe.

Is language an issue? Some countries are more English speaking than others. Do you require high quality healthcare nearby?


Narrowing Things Down

The worlds a big place. Those questions will help you narrow down your search. Heres a quick idea on how to make the search manageable:

1. Print out a map of the world (see next page).

2. Blot out anywhere with a climate that doesnt suit you. You can probably narrow it down by drawing a band above and below the equator. I like hot weather, so my band extends either side of the equator between southern Europe and the Queensland border with New South Wales. For those of you who dont like the heat, the band will be a certain distance away from the Equator, but probably not as far as the Arctic Circle.

3. Next up, draw a circle within which you are willing to travel from your Australian home. Take a quick look at flight times from your home to places around the world. Is the eight hour travel time to Singapore too much hassle or just within range?

4. It might not just be home that you want to be near. Have you always wanted to live in Europe? Or perhaps explore the booming economies of south-east Asia? Try circling the areas of interest on your map. But be careful to rule out any areas that may pleasantly surprise you. If you do want to explore, living near the right infrastructure can be crucial to making that a pleasant experience. That rules out Mongolia, for example.

You may have narrowed things down considerably already. Although I cant narrow the world down for you, for the next part of this report, Ive come up with three geographic areas I think you might be interested in: Europe, South East Asia and Central America. Ive also picked my top recommendation for each one.


EUROPEAustralians love to see Europe. It just so happens that my top pick for Australian retirees is in Europe, so that works out well. The continent certainly is a different place to Australia. Its worth seeing, but do you really want to live there?

As you know, Europe is in the midst of serious economic crisis that could last many years. Still, there are many beautiful places to retire to in Europe. My top pick gets the mix of European benefits and costs just right.

MALTA THE PICK OF THE BUNCH

Population: just over 400,000 Currency: Euro (for now) Language: English

If you want to experience the history, culture and sophistication of Europe without having to suffer its climate, Malta is the place. In fact, its my top pick for Australian retirees. It ticks all the boxes, assuming you dont mind the trip there from Australia. But once you are there, youve got all of Europe at your feet. With lots of water in between, just in case.

The two islands of Malta are only three hours flight from London, the major European capital furthest away. Not that Malta isnt interesting in itself. In fact, its more than interesting if you like history.

Malta features stories you thought were legends, including the Knights of St John who made it their permanent home after retreating from Jerusalem. Lord Nelson also brought his not-so-secret lover Lady Hamilton here. Other visitors include the Barbary Corsairs, Napoleon and the Ottoman Empire. In other words, Malta has been the place to be for

Source: Google Maps


a long, long time. The worlds oldest free standing monuments were constructed there 1000 years before the pyramids in Egypt!

English is the official language, which makes life much easier for Australian retirees. Maltese law is closely based on English law, but it is codified. This means that legislation and not precedent is the law the laws are written rules, not whatever judges decided in past cases. This combination of English legal principles and legislation only is ideal for a retiree, as it keeps things simple and clear. Those are two attributes the Australian legal system does not have.

There are plenty of tax benefits to Malta. Our very own Commonwealth Bank of Australia recently made headlines with its use of Maltese tax loopholes. Retiring all the way to Malta only to run into your banker is a bit of a downside, but bankers tend to populate the better retirement havens all around the world.

There is a fairly low cap on the maximum amount of tax payable by individuals in Malta, according to the Q Wealth Report. And the country has a tax agreement with Australia so you wont get taxed twice on any income you move from one country to another. Malta is in the EU, and does have quite a bit of sovereign debt, so changes to tax legislation and monetary instability might be a worry.

Maltas healthcare system was recently ranked fifth in the world by the World Health Organisation, trouncing Australias 32nd place performance. Australians who visit for less than 30 days are entitled to free emergency medical treatment at the state run hospital, but private health insurance is recommended by the Maltese Ministry of Health if you decide to stick around.

As for cost of living, Malta is dramatically cheaper than the likes of Sydney or Melbourne. Many significant expenses, such as rentingor buying a house, are half or a third the cost! At first glance, the only thing more expensive in Malta happens to be a Macdonalds

A Maltese Harbour

Source: www.sxc.hu

The Cost of Living in Malta

RESTAURANTS Average

Meal, Inexpensive Restaurant 12.65 A$

Meal for 2, Mid-range Restaurant, 3 course 41.13 A$

Combo Meal at McDonalds or Similar 8.86 A$

Domestic Beer (0.5 liter draught) 2.53 A$

Imported Beer (0.33 liter draught) 2.53 A$

Capuccino (regular) 2.06 A$

Coke/Pepsi (0.33 liter bottle) 1.77 A$

Water (0.33 liter bottle) 1.27 A$

RENT PER MONTH

Apartment (1 bedroom) in City Centre 417.61 A$

Apartment (1 bedroom) Outside of Centre 348.01 A$

Apartment (3 bedrooms) in City Centre 759.29 A$

Apartment (3 bedrooms) Outside of Centre 601.10 A$

Source: www.numbeo.com


combo-meal, according to the cost of living website Numbeo.

Malta is also cheap compared to much of Europe. But its not dirt cheap like the other two picks Ill introduce you to.

So does Malta come with any warnings?

Well, getting to Malta from Australia is quite a shenanigans. You can expect it to take 36 hours and at least $1600. But other than that, Malta is a pretty safe bet when it comes to retirement. There are very few peculiarities you need be concerned about. For some people, one of them is the strong presence of Roman Catholicism. 98% of the population identify with the religion, and many seriously so.

Because of steady migration out of Malta and an influx of retirees, particularly from Britain, Malta has several policies which softly penalise newcomers and benefit locals. For example, public transport discounts apply to people with certain residency status. It pays to become aware of some of these hidden costs and benefits, as life is even less expensive for people who commit to living in Malta. Another example is a rent reduction in certain types of accommodation if youre a permanent resident. Maltese citizens enjoy further benefits.

Unfortunately, it is quite difficult to obtain Maltese citizenship without some ancestral connection. Many Australians have that connection. But, unless you reside there for five years and are willing to give up your Australian citizenship, opportunities are slim. Incidentally, it is quite straight forward to resume Australian citizenship if you do decide to become Maltese.

If you enjoy a green environment, full of flora and fauna, Malta might be a disappointment. The trees seem to have emigrated. The architecture makes up for it, though. In my opinion, the Maltese capital Valletta has the most beautiful harbour in the world.

So all in all, Malta does top the list for Australian retirees. Especially those who dont want a complete lifestyle change and are interested in Europe.

So how do you get started? Apart from taking a holiday in Malta, for which you wont need a visa unless you stay for more than 90 days, you can find out more information about moving to Malta by contacting an immigration specialist. The rules and requirements of permanent residency frequently change and there are several different options to consider. Im not a travel agent or an immigration lawyer, so its difficult to help with all this. But I hope youll take a close look at whether Malta can be your retirement bolthole.

Valletta Harbour

Source: www.sxc.hu


*** Update: Malta is caught up in Europes sovereign debt crisis. Government finances remain stable for now. Debt to GDP has taken a turn for the worse this year, rising to 75%. It is very difficult to know how the euro crisis will play out for Malta and any retirees there. On the one hand, living costs could plummet. On the other, public services could struggle. Despite these risks, Malta remains an excellent option for Australian retirees.

SOUTH-EAST ASIAMuch closer to Australia are the countries of South-East Asia. Home to the booming economies of the future, some parts of the region have already developed enough to attract retirees from around the world. The incredibly low cost of living is a major drawing card. Culture shock is no small barrier though.

Our top pick within South-east Asia is known as one of the most peaceful places in the world. Its a little difficult to get to, but worth the trip.

CHIANG MAI, THAILAND WHERE THE SWISS GO TO HIDE.

Many wealthy Europeans move to Switzerland to retire. They like the perfectly square fields and the mountains. Or theyre worried about autocratic government, war and the collapse of

the welfare state back home. But the Swiss seem to have a taste for something different when it comes to escaping the very same threats. Chiang Mai News did a story on the influx of Swiss escapees:

Nestled in the north of Thailands many valleys, and perched atop its numerous mountains, reside an astonishing number of Swiss people. Life is good here, [says] Manhardt, infrastructure is good, the prices are still reasonable and we can afford to live a quality of life here that many of us can only dream of in Switzerland, where, behind every corner there is a policeman. Here people leave you alone as long as you dont wrong them; it makes life very comfortable.

If a Swiss person named Manhardt tells you the infrastructure in Thailands second largest city is good, it is good. This might come as a surprise, considering Chiang Mais location. It isnt anywhere near the famous beaches of Phuket or bustling Bangkok. Its in the landlocked north of the country.

But the city is a national symbol to the Thais. Its their northern capital. If the lack of beaches disappoints you, move to Queensland. This place is the cultural and historical hub of Thailand. The book and film Anna and the King of Siam were set nearby. And the city has almost as many temples as all of Bangkok, which is much bigger.


Whats surprising is that the very same place is also quite modern in many ways. Jim Dagenais wrote to the US edition of International Living about the expats retirement dream in 2009. Here are some excerpts:

Chiang Mai seldom gets cold enough in the winter evenings to need a jacket, and has a low crime rate. The Thais have strong family values and senior citizens are respected and held in esteem.

Monthly costs of living in Chiang MaiRent: $1501,000

Basic cable television: $6

Internet: $15

Water bill: $4

Electricity: $6$30 (depending on the season)

Maid service: $30 (twice a week)

I plan to take short trips to visit some of Thailands island beaches, Cambodia, Laos, China, and Vietnamall within easy access. Since I have lived here I have not been bored a single day.

Foreign ownership restrictions on property are an issue in Thailand. There are two commonly used ways to get around this, if you do still want to buy. The first is to buy the house and lease the land it is on from a Thai individual for 30 years, with the option to renew twice. The second is to set up a Thai company with your ownership at 49%, which then purchases the property. If you have friends with Thai backgrounds or connections, thats often the best way to go about this.

Source: Google Maps

Thai Temple

Source: www.sxc.hu


Chiang Mai routinely ranks amongst the top 25 places to live, or the top 20 most relaxing places in the world. But the biggest draw card for Australians is of course the opportunity to live like a king. Apart from wine and cheese, everything is either drastically or absurdly cheaper in Thailand, according to Numbeo.

Chiang Mai stands out from places in Thailand because world renowned financial guru Dr. Marc Faber chose it as his home. This as good an endorsement as you can get. Dr. Faber must be one of the most travelled people in the world. And he is an expert on Asia, starting up a stock brokerage there in the 70s. He would not choose his place of residence lightly. Nor did he hold back on the remarkable creation that now serves as his office. Its full of Communist era paraphernalia.

Getting to Chiang Mai costs about $900, and takes 12 hours with 1 stop in Bangkok.The shortcomings are fairly obvious, although minimised by the amount of expats now living in Chiang Mai. Theres always a culture shock in moving to Asia. Australians seem quite at home in Thailand, though. And its not difficult to make it homely on a budget, or regal on a bigger budget.

Its certainly best to try before you buy when youre moving to Asia. So you should take a holiday in Chiang Mai to scope out the lifestyle. But if you decide its for you, the next step is to sort your visas. Luckily, many Australians retire to Thailand, and so there is a straight forward retirement visa. There are many immigration agents happy to organise the details. One great feature is that you can upgrade your Thai visa while youre there, which means you can leave much sooner than you might think.

The Cost of Living in Chiang Mai

RESTAURANTS Average









RENT PER MONTH







CENTRAL AMERICAThe parent company of our publishing business here in Melbourne was founded more than thirty years ago. And it was founded on an idea:

There are a host of places around the world that are cheaper...healthier...safer...freer... than you ever thought possible. Our job is to help you discover those places, and then to help you take advantage of the opportunities they offer opportunities to improve your quality of life...to lower your cost of living...to invest for profitable return before the rest of the world catches on.

International Living magazine now has more than 400,000 readers globally. It is the worlds authority in the very thing this report is trying to help you with where to retire to. And Central America happens to be one of the areas of the world that International Living specializes in. So we couldnt miss out their top pick Ecuador.

ECUADOR THE EXPERTS CHOICE

Ecuador has a lot of stigma attached to it. So Ill let the US editions team of experts explain just why they think this is the spot for you. (All figures in this section are in US dollars.)

Ecuadors equatorial sunshine, the choice of spectacular mountains, high plains, jungle, or coastal settings, and the unvaryingly friendly and welcoming nature of Ecuadors people, and you have a combination for a quality of life thats hard to beat.

No matter where you choose to live in Ecuador, there is no better retirement haven in the world. Thats what our 2012 Global Retirement Index reveals. Across all eight of our crucial categories it scores strongly. It outright wins two. And nowhere does it fail to live up to its reputation.

Ecuador has the cheapest costs of living, the best-value real estate, and it presents you with some of the most diverse options of any country. Live in the colonial splendor of its cities for less than $1,000 a month ... buy a beachfront condo for $60,000, with a view of the crashing Pacific...explore the countrys Amazonian jungles...live comfortably in thriving expat communities...or with friendly, welcoming locals.

The special benefits you can avail yourself of as a retiree are second only to those offered by Panama, and they dont trail by much. Youll find world-class healthcare at a fraction of the costs back home, along with doctors trained in the US who speak English.


Youll have dinner out for $2.50, an hour long massage for $25...a beer costs $0.85, and if you want to keep busy with work, its one of the best countries for an expat start-up.

The Ecuadorian government guarantees senior citizens access to free health care and medication and exemption from notary and registration fees. All expats are able to participate in the Ecuador Social Security medical program, explains Jack Moss who, with his wife Debbie, retired to Cotacachi two years ago. The premium is about $57 a month, and there is no co-pay or deductible for physician visits, hospitalization, medications, or dental visits.

One of the benefits to Ecuador is the ease of real estate investing:

Youll find that buying a property in Ecuador is more straightforward than you may be accustomed to back home. For example, there are no title or escrow companies, and sellers and buyers are required to pay their own debts outside the sales process, such as insurance, real estate commissions, etc. These issues are not brought to a closing, which is strictly between the buyer, seller, and the notary. Your attorney should be able to guide you through the purchase process, and help you to avoid potential pitfalls.

Remember that in Ecuador, as in most Latin American countries, cash is king. Interest rates are still high here compared to the US so if you can paywith cash you will gain significant bargaining power. Weve seen several shoppers submit offers of half the original asking price who ended up paying 60% or 70% of the original price.

Source: Google Maps

Visit the Galapagos Islands

Source: www.sxc.hu

Peru


Foreigners and Ecuadorian natives are on equal footing when it comes to real estate. You do not need to be a resident to own property. To the contrary, property ownership can qualify you for residency. There are certain restrictions in the case of National Security Areas, which may include the countrys borders, although these areas are not specifically defined in the law. Your attorney or the notary will inform you if your property requires any type of permission.

Beachside villa, mountain retreat, or city apartment, you can have it all, for the price of a one bedroom flat in Melbourne. What might surprise you about Ecuador is its rich history and cultural scene. The colonial stories are quite remarkable and much of the architecture is intact. The Galapagos islands are within reach too, for naturalists. In fact the wildlife is the real drawing card of Ecuador in our opinion. Hotspots for retirees include the valley of longevity and the valley of smiles.

As for getting there, Ecuador is on the west coast of South America. And its surprisingly easy to get to. $1400, 25 hours of travel and one stop over in Chile will get you there.

One expats big warning is this: The advice I give to anyone whos thinking of a move to Ecuador is: Go with the flow...or go home. The country is still corrupt, poor and parts of it are dangerous. But, if you go about things the right way, Ecuador is a fantastic option.

Because many Westerners retire to Ecuador, the visa requirements are fairly straight forward. You can expect the visa to be approved within 48 weeks. Its best to hire an immigration lawyer to figure out which of the many options suits you.

The Cost of Living in Ecuador

RESTAURANTS Average









RENT PER MONTH






Ecuadorian Wilderness

Source: www.sxc.hu


Resources

So theres our guide to the top three retirement picks worldwide. I hope youve found them interesting. Keep in mind the factors I mentioned at the beginning of this report. Ive only helped you with the where and not the how, when, or why of retiring overseas. Those factors are just as important.

Best of luck with your decision.

Simon C MuntonEditor, The Escapologist

If youve been inspired to investigate some other places around the world, here are some resources I found useful in my search:

www.numbeo.com compare cost of living data for cities worldwide

maps.google.com Google maps can be a powerful search tool if you know what sort of regions of the world youre interested in.

www.airbnb.com if you want to try before you buy, why not rent someones home without the hassle that usually goes with it? You can even put rent out your own home in the meantime to pay for it.

Thanks to our friends at the US Edition of International Living magazine: www.internationalliving.com


ABOUT THE ESCAPOLOGISTIf you enjoyed this report youll love the free email newsletter you just signed up for. The Escapologist is published three times a week from Melbourne. Its ongoing mission: to illuminate escape routes to health, wealth and happiness. To uncouple you from the slings and arrows of outrageous routine. To put real, genuine choice back into your hands. To eliminate the stress you carry around every day in your neck and shoulders. To feel more human, more optimistic and more positive about your future. We all want to escape from something. Could be your job or career. Could be your financial situation. Could be poor health or your body shape. Could be the country. Could be a strange and illogical mindset thats dogged you for years. Could just be boredom. Whatever you want to escape fromas long as its not a correctional facility (medium security or above), a burning car, sinking ferry or broken down liftyoull find ideas, answers and solutions here. Every week, Simon C Munton, Mike Graham and a growing cast of escapologists from all over the world will write down their best ideas, thoughts and game plans; then email them to you. For free. Youll hear from people who have done what you aspire to do and are happy to share their secrets. Youll hear from others who failed but learned valuable lessons on the way. And youll enter a world of exciting ideas open only to optimists and doers. If you dream of escape of working for yourself, doing something that interests you broadening your horizons overseas if you want to make extra money in a few hours a week without having to learn new skills if you want the good things in life, and you want them simply, safely and quickly if you believe deep down that limits are arbitrary and usually imposed on you by self-interested third parties if you care about how good life can be; not how bad it is, we can work together. I guarantee youll be surprised at the scale of opportunity out there. And if you arent surprised; if you are underwhelmed, or merely whelmed by the fare on offer, dont worry. You can escape our email at any time with no hard feelings. Ideally youd just press escape on your computer keyboard. While that would be greatsadly, it wont work. But you will find an unsubscribe link at the bottom of every email we send you. Click on that, and we shant bother you again. But I hope it doesnt come to that at least not until weve helped you find your escape route to wherever