How Moving to Hong Kong Can Make You Rich

I recently reviewed a list of the world's most expensive real estate markets and I'm going to tell you why the most expensive city to buy real estate in the world is actually a bargain compared to dozens of other cities on the list including the one you may live in [Music] now and I'm looking at a report from num. comom where they rank some of the most affordable and most expensive places to live and buy property we've told you about Great Value destinations that are even tax friendly for years but they list the top 10 most

expensive real estate market starting at Sydney Australia with Shanghai and China number eight is London number seven is Tel Aviv number six is New York number five is Geneva number four is soul Singapore is in third place Zurich is in second place and Hong Kong even as prices have come down in many places is still the most expensive real estate market in the world $ 28,5 199 per square meter or about $2,600 in change per square foot and yet if I compare Hong Kong to other cities not only in the top 10 but further down

in the top 100 it's actually a bargain for the seven and8 figure entrepreneurs and investors that Nomad capitus works with now I'm not telling you that you should move to Hong Kong I'm going to come back to the greater point you can take from this in a minute but Hong Kong still has one of the most tax-friendly and one of the most immigration friendly regimes in the world and here's why that could help you you can go out and get a res res permit in Hong Kong you have to invest 30 million Hong Kong dollars

that's give or take about 4 million Us in any number of different Investments that include publicly traded shares some of those companies have gotten beaten up in recent years as China has fallen out of favor and yet some of my investments some China have really come up in recent months you earn high dividends taxfree if $4 million isn't your entire net worth it could be an interesting place to get a residence permit and then when you live there as a tax r pres Hong Kong is a territorial tax regime which means if you have Investments

business interest or other kinds of income in other places those won't be taxed in Hong Kong and so if you look at I want to invest an equal amount of money in a home I'm going to invest $4 million in having a nice apartment somewhere yeah you're going to get a little bit smaller apartment in Hong Kong you're going to get about 140 square meters about 1500 square feet in Hong Kong whereas if you went down to New York yes you're going to pay about 30% less you're going to get more space for your money

Apples to Apples comparison but if we extrapolate that out over time Hong Kong has what New York doesn't and that's the tax friendliness in New York you're going to pay us federal income tax you're going to pay New York state tax and you're going to pay New York City tax on top of all the other taxes and fees that the broke state of New York the city of New York which is now under more pressure crime is to the roof things are out of control you're paying more than 50 cents in the dollar if you're

a seven figure earner to live in New York City so projected that over time you're pretty quickly wiping out those savings on the housing front now you could argue that you know property in New York appreciates faster than property in Hong Kong I don't necessarily look at property that I live in as something that I want to appreciate and so sure you might you know put out more money in Hong Kong to buy a property that's more money that you wouldn't invest if you want the same siiz property but let's compare it to Zurich as

well people living in Switzerland most of whom are Swiss citizens they don't have the ability to take advantage of Switzerland's tax-friendly lump suom tax program and they're basically paying the same for housing I've got a friend who's selling a home right now in a smaller town in Switzerland the prices are absolutely insane he could retire and retire nicely on just selling a four-story home in a town along the lake and so him living in Switzerland he's going to pay a lot lot of tax at his job which he could work remotely he's going to pay

tax if he ever leaves and starts a business and so he's basically paying as much as in Hong Kong now let me be clear I'm not telling you that you should move to Hong Kong but what I want you to understand is this larger principle you may be living in a place where real estate's expensive where the cost of living is expensive and yet you're paying all of that on top of your even bigger cost in your life if you're a successful person which is you're paying taxes and what you're seeing in these big cities

is the politicians are against you they want to tax you more and more you're the scapegoat for all their problems and they need a scapegoat because crime is out of control in some of these places look at New York look at San Francisco look at London people can't wear their nice watches around in London I take no pleasure in saying that I grew up watching James Bond movies and reading books about London you know reading even back to you know Around the World in 80 Days you know leaving the reform Club in London oh that

sounds so nice I wish these places were better but we have to live live in reality and so here's the takeaway you could move to a place where property costs more let's say you live in a smaller City in a place like the US let's say you live in Austin and prices have gone through the roof there or Miami prices have gone through the roof Nashville they've gone through the roof even if you live in a place like San Antonio or somewhere more affordable sure you could move overseas to an equal quality or better City

and the property may be more expensive but if you're paying 40 or50 cents on the dollar in taxes and in some of these places you're not even getting your money's worth because they're letting criminals run a muck and the politicians are wagging their finger in your face and your kids are going to school and learning stuff you don't want them to learn that's not a good environment now once you realize hey I could move to Hong Kong I could get a residence permit I could dramatically and legally reduce my tax bill and yeah I'll pay

a bit more for housing I could always rent by the way to see if I like it for a while before I can make I can put that Capital that I sell my house where I live now to work for me into my business or into Investments and generate money on that but once you realize you could go there well where else could you go about on10th the price of Hong Kong for housing is qual and poor Malaysia that's where we host our annual event Nomad capitalist live we get together for 4 days every year

the absolute best information for 4 days people's heads are spinning absolute best networking 750 8800 people from all around the world who are going to share their stories of what they're doing and great entertainment best entertainment for nomad cist anywhere go to nomad.com get on the waiting list for that it's sold out in 14 days this year we'd love to have you there next year but you got to be in the waiting list and one reason why we host Nomad accce live in qual lour is it's been a place I've spent time for over a

decade but even compared to San Antonio villus Lithuania Warsaw Poland Manchester United Kingdom Ottawa Canada roddam Netherlands Breman Germany Gdansk Poland talin Estonia Leipzig Germany ANP Charlotte Dallas Denver verosa Poland yavan Armenia it is more affordable conis Lithuania if you're living in conis you probably want to get out no matter the price but it is more affordable than all these places Calgary Istanbul poon Poland Orlando Minneapolis and New Orleans is the one that's just more expensive than qualm poor qualm Po and Las Vegas are about right on track and I think if you are willing

to buy a larger home if you're coming from a place like the United States and you want a larger home larger homes are a bit out of Vogue in some parts of qualm poor you can get probably half that price so half the price to live in Las Vegas where housing is plentiful I mean you're on par with Houston and places like that so what if you sold your property in a place where if you live in Texas where there's no state tax and there's no city tax you're still paying us federal tax same if

you live in Manchester or if you live in posan Poland you're paying tax at the national level and you're paying at least 35 40 45 cents on every dollar euro pound shekele what have you that you are earning so you can lower your cost of housing you can lower your cost of living but even if you didn't even if you went to Hong Kong where you don't have to spend that much to live but the housing is crazy it wouldn't take you that long to get back to even let's say you make a million dollar

a year and you're paying $400,000 in taxes the difference in going from a million doll house to a $2 million house in a tax-friendly place where you get to keep most of that $400,000 in tax you're going to make that back in 2 and 1/2 years and it's not like your real estate investment just went up in smoke obviously you know one thing we talk to people about is generally buying secondhand properties could be a year old could be 101 years old or anywhere in between we generally tell people people not to buy from developers

cuz most developer deals around the world when you're the foreign buyer they're going to be overpriced they've got all kinds of gimmicks but if you avoid those you can buy properties and nobody guarantees whether the market will go up and down but you've got a decent chance over time to make some money in that property the way you might at home or at least you know Break Even you're not going to lose money so even if you have a more expensive home and that home maintains its value and that home keeps Pace with inflation you

take some more money at the table all we're talking is opportunity cost at that point and so the idea for certain people who are afraid to move overseas because they don't want to go down you come to NAD cish live and you come to qual and poor you will see this isn't really stepping down if you live in a nice neighborhood you go to the nice restaurants some people hire staff to live in their home that's something you can do with the savings so your lifestyle gets better people hire nannies they hire Maids they hire

butlers you can do that with the tax savings cuz you're saving so much besides just the taxes you're saving the cost of living but if you aren't convinced and you want to go to a place that is you know considered to be on the level you could move from London to Switzerland now not to Zurich but other parts of Switzerland have Switzerland's lumpsum tax program you're going to pay one lump suum if you're a European could be as little as you know 100,000 in change a year and you can make all the money that you

want around the world so if you make $10 million a year your tax rate could be a couple of percentage points and so yeah Geneva is going to cost you 20,1 19989 per meter that is about 10 11 12% more expensive than London you're going to make that back almost immediately and so I happen to think that you can find in kind of the midlevel places you know qualm por for example or a place in Eastern Europe or a place in south or you know Central America there's plenty of places Mexico is is a place

a lot of people like to go sure Mexico isn't as economically developed as the us or the UK they don't have some of the BS rules and regul that the US and UK has you're getting that also but sure a Mexico or a Malaysia may not be quite at that level you can find that level in certain Pockets you can have the same level in your life but if you don't want to do that then maybe you take the hit on spending a little bit more on housing because you're going to save that tax rate

of 40 45% it could go down to zero to two to five and even if you're an American yes capital gains those are harder to deal with you've got places like Puerto Rico for that you've also got having a second pass and one day not being American as a solution for that but if you're an American business owner you can still dramatically reduce your tax rate let's say you get it down to 9 10 11% you're still probably you know cutting your tax bill by 3/4 and you know you see Las Vegas and qual and

poor right on par and again I argue qual and PO is actually substantially cheaper if you're willing to buy a large house and do some Renovations and so you're looking at a couple of factors what's the quality of life that I perceive in a certain place what's the actual quality of life that I can have and one of my actual tax and cost of living cost divided by any extra in housing and you decide how you want to play those all together we help our clients figure this stuff out we have dozens and dozens of

dozens of options we've got a backend system we created from scratch called manura all of our data all our research goes in there we have programs in every corner of the world how to get a residence permit how to get a citizenship how different tax programs work how different companies work within those tax programs other things like bank accounts and trusts cuz you may not want those in the place that you actually live we provide the Holistic Solutions that other people talk about and then they shoehorn you into the two or three options that they

prefer to sell that they're comfortable with we've helped thousands of clients at this point go to dozens and dozens and dozens of countries and again they're diversifying one thing goes here one thing goes here it all works together smoothly learn how to do that at nomad.com apply if you are a seven or eight figure entrepreneur or investor and you live in a western country or you live in a high tax non-western country you are losing a lot of money to tax what if you put that money into housing somewhere housing that is going to retain

its value or grow that's a lot better investment for you and your family especially if that leads to Future citizenship for your family that gives them even more options gives you a plan B in times of chaos that's a lot better plan than throwing your money down the the rats hole or into the sewer the world's longest Ural that is in the New York Subway system where they spit on you for giving them your money you're still paying some of the highest costs for real estate in New York and London where people come out from

nice restaurants and are threatened with a stabbing if they don't hand over their Ro legs and so I'll end with a few more examples you can move from Sydney Australia to panang Malaysia we don't have the numbers for panang for housing let's say it's the same as qual import it's probably a little bit lower you're going to cut your housing cost by 80% probably cut your taxes by 80% or more get a lifestyle Improvement and add the fulltime made at the full-time Nanny you're not going to have that in Australia people would like what are

you what are you weird you a nanny you made what Boston to Dublin cut your housing by 30% I'm not so sure about that let's just call it even cut your taxes from 50% down to 10% perhaps if you're an American from Los Angeles to Chile or Uruguay or Panama all similar prices cut your housing cost by about 2/3 get a multi-year tax exemption cut your taxes by that much or more or make this an opportunity if you're tired of the politics i s letting chaos run a muck move to more conservative Place we've talked

about Poland ver in southern Poland is onethird cheaper than San Antonio Texas you've got a new lumpsum tax regime in Poland it's a more conservative place so you don't always have to move to the big city you can move to a verosa or a posan or a wuj in a place like Poland you can move to Belgrade in Serbia there's so many options out there and once you realize hey I have options I'm paying too much for housing I'm paying too much in taxes I'm not getting getting enough for it that's when the wheels start

moving and that's why I think Nomad capist is the best company to help people with this because we have all the options and we let you choose as the facts come out [Music]