Expat Investment

EGGP1878

Hi, I am 28 and have recently moved to Qatar, I have non resident status in the UK.

I would like to start investing my money whilst also overpaying my UK mortgage, I currently owe £282,000 and have 27 years remaining. I plan to significantly reduce this term by making overpayments of 10% per year. My UK home will be rented out which will cover the mortgage but the overpayments I will contribute myself.

Since arriving in Qatar I have been approached by a number of people trying to sell me all sorts of weird and wonderful 'opportunities'. I have avoided these so far and plan to go it alone if possible, but I am new to this.

I have so far paid off all of my UK debt other than the mortgage and a low interest Zopa loan I have from my wedding (around £7,000 remaining to pay). I also have a small pension with Aviva (£26,000) which is just sitting there at the moment.


I have started to do my research online and have ordered Andrew Hallams book 'Millionaire Expat' which has been recommended to me. My plan so far is to invest around £2,000 a month into low fee index funds plus overpay my mortgage. I don't know how long I will be out here but hope to stick it out until I've at least paid my mortgage off, so maybe 8/10 years.


If anybody has any suggestions I would really appreciate it. I am new to this, and want to start on the right foot. I have heard horror stories out here regarding how people have 'invested' their money.


Thanks for reading.

Malthusian

EGGP1878 wrote: »

Since arriving in Qatar I have been approached by a number of people trying to sell me all sorts of weird and wonderful 'opportunities'. I have avoided these so far and plan to go it alone if possible, but I am new to this.

Good. Continue avoiding them. The only opportunity here is theirs, to steal all your money.

If you still have UK bank accounts and a UK address (can you get post forwarded to you in Qatar?) you should be able to remain within the UK regulatory system. Not all providers will accept you as a non-resident but quite a few will if you have a UK address and bank account.

I also have a small pension with Aviva (£26,000) which is just sitting there at the moment.

As long as it is sensibly invested there is little reason not to just leave it growing.

I have started to do my research online and have ordered Andrew Hallams book 'Millionaire Expat' which has been recommended to me. My plan so far is to invest around £2,000 a month into low fee index funds plus overpay my mortgage. I don't know how long I will be out here but hope to stick it out until I've at least paid my mortgage off, so maybe 8/10 years.

What about the Zopa loan? Wouldn't paying that off immediately give you the best return? You say low interest but how low? It seems unlikely that a personal loan for a wedding is lower interest than the mortgage.

Are you going to have any tax liability on your rental income? Overpaying the mortgage is potentially tax-inefficient if your mortgage costs can be offset against your rental income. But I don't know what your position is as a Qatar resident.

Some would prefer investing over repaying the mortgage, as a diversified stockmarket investment can generally be expected to outperform most mortgages over the longer term. But if tax isn't coming into play it comes purely down to one's objectives and risk profile.

ChasingSunshine

Hi, as this forum is UK focused you might not find many people who will advise on the situation you are in.
I'm no longer in the middle east but did work there for a short time recently. You are right to stay away from those who are selling investment plans which tie you in to a long term high payment. Usually with the commission front loaded and high exit penalties. Unfortunately I know quite a few people who lost out with these schemes.

Reading millionaire expat is a good place to start. I believe there is also a ChooseFI local group based in Doha. You could also look at the facebook group SimplyFI - Common Sense Personal Finance and Investing. This is UAE based but the advice is pretty standard for expats and focuses on index investing. They have a few brokers they talk about and recommend as most UK brokers will not accept people who are not UK resident.

Your home is rented, have you got consent from the bank? Do you know how long before you will have to change to a BTL mortgage which will obviously change the interest rate etc.

Financially Qatar can be a great opportunity so well done on planning to take advantage of this but don't forget to enjoy the experience as well. You don't have to spend a fortune but make sure to enjoy the time away rather than just marking it down as time to be put in until the mortgage is paid off.

ColdIron

EGGP1878 wrote: »

Since arriving in Qatar I have been approached by a number of people trying to sell me all sorts of weird and wonderful 'opportunities'.

Most if not all of these will not be regulated by the FCA and have no FSCS protection

Do a search for Generali Vision for example, here's a couple to be getting on with
https://forums.moneysavingexpert.com/discussion/2695029/reclaiming-generali-vision-plan-premiums
https://forums.moneysavingexpert.com/discussion/5495087/desperate-help-needed-expat-invested-in-generali-vision-plan-through-deveres

EGGP1878

Malthusian wrote: »

Good. Continue avoiding them. The only opportunity here is theirs, to steal all your money.

If you still have UK bank accounts and a UK address (can you get post forwarded to you in Qatar?) you should be able to remain within the UK regulatory system. Not all providers will accept you as a non-resident but quite a few will if you have a UK address and bank account.

As long as it is sensibly invested there is little reason not to just leave it growing.

What about the Zopa loan? Wouldn't paying that off immediately give you the best return? You say low interest but how low? It seems unlikely that a personal loan for a wedding is lower interest than the mortgage.

Are you going to have any tax liability on your rental income? Overpaying the mortgage is potentially tax-inefficient if your mortgage costs can be offset against your rental income. But I don't know what your position is as a Qatar resident.

Some would prefer investing over repaying the mortgage, as a diversified stockmarket investment can generally be expected to outperform most mortgages over the longer term. But if tax isn't coming into play it comes purely down to one's objectives and risk profile.

Thanks.

I plan to also pay the Zopa loan off before investing anything. The interest rate is 2.9% so you're correct in suggesting it is higher than my mortgage rate.


I believe I will have a tax liability on my rental income eventually, but at the moment my wife is still in the UK so I haven't actually begun renting my place out yet.


Much appreciated.