femi fan Posted November 12, 2012 Share Posted November 12, 2012 I don't normally swim in these waters on the forum - never had money to invest, never been very good at money except spending it! So please treat me lightly! However it's more than possible i will have some to invest soon, probably next year. I have lived in thailand 20 years, am british, but go to oz frequently. Aussies will know that the exchange rate from dollar to baht is still fantastic - for years it was always less than 30. My point here is that of all currencies in the world it seems to me that both the aussie dollar and the thai baht are as safe as any out there, and to my limited understanding safer than pounds or euros or US dollars. I'm really looking for advice on how and where to invest this money. It seems my commonwealth bank in oz pays about 4.5% whereas here in thailand it seems 3% is a good rate. That makes the aussie dollar more attractive now, and i can bring in the interest paid over in oz at a nice exchange rate. But the mining boom might start slowing down soon. What will that do to the exchange rate between baht and dollar? It seems to me that the baht has been so strong during the financial crises in recent years in europe and the US in terms of their debts and poor economies. Would i be better bringing most of that sum to thailand getting the exceptional exchange rate while i can, and earning less interest? Or keep it in oz and hope the exchange rate doesn't get much worse. I guess the big question is: does thailand or australia have a better short-term and mid-term future? Or should i just buy a load of gold over here?! Thanks for any ideas. Link to comment Share on other sites More sharing options...
Khun Jean Posted November 12, 2012 Share Posted November 12, 2012 (edited) Real estate, but time it so that you not buy on the top of a bubble. Buy when there is a sale. Buy some gold for a hedge. And when you have that money available, don't 'invest' it to quick. Stocks/bonds require a lot of knowledge. When your goal is to stay in Thailand for a long time, having access to Thai bahts is good. Renting out property has done good for me as i am less dependant on exchange rates. In my case a euro that went from 35 to 50 and back to 39. Bought realestate here when the euro was between 45 and 50. You need some luck also. Edited November 12, 2012 by Khun Jean Link to comment Share on other sites More sharing options...
jamescollister Posted November 12, 2012 Share Posted November 12, 2012 OP if you are a smart business man and willing to take a risk in today's crazy world, I need an investor with brains. Already up and running asset rich [sort off ] but capital poor, you can Google me, name and Thailand. Best be very careful here, many come with money most leave poor. Jim Link to comment Share on other sites More sharing options...
Naam Posted November 12, 2012 Share Posted November 12, 2012 (edited) Aussies will know that the exchange rate from dollar to baht is still fantastic - for years it was always less than 30. there were times when it wasn't fantastic at all and AUD dropped like a stone vs. Baht, USD as well as €UR in 2008. examples: AUD THB from 33.30 to 21.00 AUD USD from 98.00 to 60.00 AUD EUR from 63.00 to 49.00 AUD is presently not only commodity but also interest rate driven. if both drop or are expected to drop your interest advantage over Thai Baht can be wiped out in just a couple of trading hours. I guess the big question is: does thailand or australia have a better short-term and mid-term future? your guess is as good as any answer you will hear. do you know the proverb "a bird in the hand is worth two in the bush"? Edited November 12, 2012 by Naam Link to comment Share on other sites More sharing options...
femi fan Posted November 12, 2012 Author Share Posted November 12, 2012 Thanks for the replies so far. I'm not a businessman, and the money will come from selling a house over in oz. I won't be touching stocks or anything like that. I'm not after huge returns, just a way of trying to make the money work a bit for me in these rather turbulent times. I can't see past earning interest in a bank, gold, or possibly a new condo somewhere in thailand to get some rent coming in. Sorry jim, i'll not be doing any googling! Naam, do i understand right that if the aussie dollar gets weaker then interest rates in australia for savings decrease? Is that the usual way? I've always had a bit of a blank when it comes to money. I guess i'm also looking to see if any aussies are here who can make pertinent comments about the mid-term prospects for their country. I have heard, for example, that the mining boom may begin to end as soon as in one or two more years. I have also heard that this boom is what's keeping the country going. Link to comment Share on other sites More sharing options...
manarak Posted November 12, 2012 Share Posted November 12, 2012 Naam, do i understand right that if the aussie dollar gets weaker then interest rates in australia for savings decrease? Is that the usual way? I've always had a bit of a blank when it comes to money. Normally it is the opposite, or at least when the fall of a currency is due to increase of monetary mass and outstanding loans, then the central bank raises rates to make money more "expensive". If you are a novice in investments, currency risk is tricky to get around to, so I would first concentrate on determining which currency is the more important for you, i.e. against which inflation rate you want to measure your investment's performance, and then concentrate on investing cleverly in that currency. Link to comment Share on other sites More sharing options...
sotsira Posted November 12, 2012 Share Posted November 12, 2012 If you can get 4.5% interest in oz then i would leave it there for now and see how things plan out. You can always transfer it to Thailand at a later date if rates change dramatically in oz. Buying a condo to rent out is more of a risk especially if you don't buy the right kind for both rental purpose and resale potential. Gold seems to have stabilised lately so could have already peaked for now. Link to comment Share on other sites More sharing options...
meatboy Posted November 12, 2012 Share Posted November 12, 2012 i am in the same boat as the op.you say your a brit.been living in thailand 20yrs.and got a aus.bank acc.paying you 4.5%,if like the uk you sell your prop.can you still have an aus.savings acc.you cant have one in the uk.as your classed as non resident.as for exchange rates i will give you my predicament.i have £100,000 to put into a bank offshore or in thailand,6weeks ago i could have had 4.5%offshore fixed for 5yrs now today you cant find 3%,. or 3%-3.5% in thailand thats ok for me its only topping up my pension,1st of nov.£ to thai bht.49.20 that will do,today 48.40 a diff.of -80,000bht.as i have only just had access to the moneyits got to stay in a holding acc.in the uk.at the moment the best i have seen in thailand is 3% fixed for 3years.so never mind what you see in the next 12months will only test your brain functions. Link to comment Share on other sites More sharing options...
Naam Posted November 12, 2012 Share Posted November 12, 2012 Thanks for the replies so far. I'm not a businessman, and the money will come from selling a house over in oz. I won't be touching stocks or anything like that. I'm not after huge returns, just a way of trying to make the money work a bit for me in these rather turbulent times. I can't see past earning interest in a bank, gold, or possibly a new condo somewhere in thailand to get some rent coming in. Sorry jim, i'll not be doing any googling! Naam, do i understand right that if the aussie dollar gets weaker then interest rates in australia for savings decrease? Is that the usual way? I've always had a bit of a blank when it comes to money. I guess i'm also looking to see if any aussies are here who can make pertinent comments about the mid-term prospects for their country. I have heard, for example, that the mining boom may begin to end as soon as in one or two more years. I have also heard that this boom is what's keeping the country going. Naam, do i understand right... manarak answered your question, it's the other way round. OZ mining boom the Oz mining boom depends on the global, but mainly on the Chinese economy. interest in a bank stick to it! rental income up to you gold does not yield a penny and there's no guarantee that the price will go up. Link to comment Share on other sites More sharing options...
kurnell Posted November 12, 2012 Share Posted November 12, 2012 Similar for me and I have decided to leave half my savings in Australia and half in Thailand and shift them back and forth if either currency crashes. Link to comment Share on other sites More sharing options...
BEVUP Posted November 13, 2012 Share Posted November 13, 2012 Well tome yu seem to be ansering your own question yu came to auss to make money even though there are plenty of qualified people unemployed but are asking about ex rates mining boom been in fo 20 years & find hard to get job due to the useless imports they bring in & including the aussies When i do get employed i just shake my head asto what i see eg Can be in Auss for a year from other country why qualified Aussjes are unemployed Link to comment Share on other sites More sharing options...
yoshiwara Posted November 13, 2012 Share Posted November 13, 2012 If you can get 4.5% interest in oz then i would leave it there for now and see how things plan out. You can always transfer it to Thailand at a later date if rates change dramatically in oz. Buying a condo to rent out is more of a risk especially if you don't buy the right kind for both rental purpose and resale potential. Gold seems to have stabilised lately so could have already peaked for now. Take the 4.5%. Link to comment Share on other sites More sharing options...
givenall Posted November 13, 2012 Share Posted November 13, 2012 I recommend that you do not do it in Thailand. This country drains money and you can get it back. The fund transfer to Thailand is easy, but it can be very hard to take it back. Also, everything you see may not be real, including the balance sheet of the companies since the regulation is not there to protect the individuals Link to comment Share on other sites More sharing options...
LindsayBKK Posted November 13, 2012 Share Posted November 13, 2012 (edited) There! Here is a good link for all the best rates/deals/offers in Oz. http://www.infochoice.com.au Edited November 13, 2012 by LindsayBKK Link to comment Share on other sites More sharing options...
simple1 Posted November 13, 2012 Share Posted November 13, 2012 OP: Unsure on how Banks treat you if you are not an Australian resident for tax purposes. You need to check it out as you may find that you will require an Australian Tax File Number, otherwise the Bank's will automatically deduct the full tax rate on any interest earned, currently 45%. 1 Link to comment Share on other sites More sharing options...
Daewoo Posted November 13, 2012 Share Posted November 13, 2012 Smart investment would say that you need to earn money in the currency/location where you would spend it... For $300,000 you can probably get towards 5%, which would earn you $Au15K/year in interest... If you were to leave $Au200K Australia, and $Au100K in Thailand at 3%, you would probably get a lower rate in Australia, maybe 4%, and like you said, 3% in Thailand. $8K on the Aus portion, $3K on the Thai portion. so your total interest income may drop to $11K... If you can still get 5% on the Aus portion, that number would be $10K, and therefore the total $13K... As the Australian economy succeeds, the value of the Dollar increases which means you get more baht for each Aussie Dollar... As the Thai economy falters, the THB decreases against the AUD... Which means you get more THB for each Aussie Dollar... As the economy succeeds, the central bank increases the rate it charges retail banks to borrow money, the retail banks increase their interest rates, so people have less money to spend, which slows the economy... (the is how the central bank (Reserve Bank in Aus) controls inflation)... Whether the economy is not doing to well, the interest rates will go down... also, the value of the dollar may go down... that is what is happening everywhere else in the world at the moment... Australia is a bit insulated, because all our exports are sent to China without any value add... as long as their economy is strong, we keep earning the same... When the Chinese manipulation of their economy catches up to them, Australia is in for a very difficult time... For your needs, you don't want all your income being earned in Australia, and your spending in Thailand... because you might find yourself without sufficient income to cover your immediate needs... that is why you should think of having enough in Thailand to cover you for the ups and downs of the market in Australia... the income in Thailand will be directly linked to the economy in Thailand... 1 Link to comment Share on other sites More sharing options...
Daewoo Posted November 13, 2012 Share Posted November 13, 2012 Smart investment would say that you need to earn money in the currency/location where you would spend it... For $300,000 you can probably get towards 5%, which would earn you $Au15K/year in interest... If you were to leave $Au200K Australia, and $Au100K in Thailand at 3%, you would probably get a lower rate in Australia, maybe 4%, and like you said, 3% in Thailand. $8K on the Aus portion, $3K on the Thai portion. so your total interest income may drop to $11K... If you can still get 5% on the Aus portion, that number would be $10K, and therefore the total $13K... As the Australian economy succeeds, the value of the Dollar increases which means you get more baht for each Aussie Dollar... As the Thai economy falters, the THB decreases against the AUD... Which means you get more THB for each Aussie Dollar... As the economy succeeds, the central bank increases the rate it charges retail banks to borrow money, the retail banks increase their interest rates, so people have less money to spend, which slows the economy... (the is how the central bank (Reserve Bank in Aus) controls inflation)... Whether the economy is not doing to well, the interest rates will go down... also, the value of the dollar may go down... that is what is happening everywhere else in the world at the moment... Australia is a bit insulated, because all our exports are sent to China without any value add... as long as their economy is strong, we keep earning the same... When the Chinese manipulation of their economy catches up to them, Australia is in for a very difficult time... For your needs, you don't want all your income being earned in Australia, and your spending in Thailand... because you might find yourself without sufficient income to cover your immediate needs... that is why you should think of having enough in Thailand to cover you for the ups and downs of the market in Australia... the income in Thailand will be directly linked to the economy in Thailand... If you already own to property in Australia, with rents as high as they are, you might better keeping the property and taking the rent money... property should do about 10%, which is double what the best cash rate is... Link to comment Share on other sites More sharing options...
BlackPuddingBertha Posted November 13, 2012 Share Posted November 13, 2012 "Would i be better bringing most of that sum to thailand getting the exceptional exchange rate while i can, and earning less interest? Or keep it in oz and hope the exchange rate doesn't get much worse. I guess the big question is: does thailand or australia have a better short-term and mid-term future? Or should i just buy a load of gold over here?!" Eggs. Basket. One. Don't. Link to comment Share on other sites More sharing options...
Naam Posted November 13, 2012 Share Posted November 13, 2012 OP: Unsure on how Banks treat you if you are not an Australian resident for tax purposes. You need to check it out as you may find that you will require an Australian Tax File Number, otherwise the Bank's will automatically deduct the full tax rate on any interest earned, currently 45%. investing in AUD neither requires to be an Oz resident nor does one need an Australian Bank. tax free AUD accounts are available with most banks not only in Hong Kong or Singapore but also worldwide. Link to comment Share on other sites More sharing options...
simple1 Posted November 13, 2012 Share Posted November 13, 2012 OP: Unsure on how Banks treat you if you are not an Australian resident for tax purposes. You need to check it out as you may find that you will require an Australian Tax File Number, otherwise the Bank's will automatically deduct the full tax rate on any interest earned, currently 45%. investing in AUD neither requires to be an Oz resident nor does one need an Australian Bank. tax free AUD accounts are available with most banks not only in Hong Kong or Singapore but also worldwide. I was referring to deposit/investment accounts with financial institutions in Australia. Link to comment Share on other sites More sharing options...
Naam Posted November 13, 2012 Share Posted November 13, 2012 OP: Unsure on how Banks treat you if you are not an Australian resident for tax purposes. You need to check it out as you may find that you will require an Australian Tax File Number, otherwise the Bank's will automatically deduct the full tax rate on any interest earned, currently 45%. investing in AUD neither requires to be an Oz resident nor does one need an Australian Bank. tax free AUD accounts are available with most banks not only in Hong Kong or Singapore but also worldwide. I was referring to deposit/investment accounts with financial institutions in Australia. that's of course a different animal. Link to comment Share on other sites More sharing options...
femi fan Posted November 13, 2012 Author Share Posted November 13, 2012 A big thanks to all who have replied to me, i never thought i'd get so much help! Perhaps i can give a few more details... I have a normal savings account in one of the banks in oz. My sister married an aussie, hence my frequent visits there. Ten years ago i was able to buy some land very cheaply and build on it, at which point the economy and land prices boomed. I want to sell the house. I can earn reasonable rental income on it, but this is becoming more stressful - cyclones, termites, increasing rates and insurance bills, and so on. I want to realise the money. It's a bad time to sell, but there you go. I work in thailand, but i'm getting older and would like to cut this down. I"m not into business, so my income is nothing special especially as i live in chiang mai. I'm also wondering about the state of the world. Many punters - not normally in the mainstream - are convinced that currencies are being propped up to the point where collapse is imminent. We had the warning back in 2008, but it seems it's not being heeded. If such a global collapse occurs part of my thinking was whether australia or thailand would more likely be hit worse. Link to comment Share on other sites More sharing options...
femi fan Posted November 13, 2012 Author Share Posted November 13, 2012 Smart investment would say that you need to earn money in the currency/location where you would spend it... As the economy succeeds, the central bank increases the rate it charges retail banks to borrow money, the retail banks increase their interest rates, so people have less money to spend, which slows the economy... (the is how the central bank (Reserve Bank in Aus) controls inflation)... Whether the economy is not doing to well, the interest rates will go down... also, the value of the dollar may go down... that is what is happening everywhere else in the world at the moment... Australia is a bit insulated, because all our exports are sent to China without any value add... as long as their economy is strong, we keep earning the same... When the Chinese manipulation of their economy catches up to them, Australia is in for a very difficult time... For your needs, you don't want all your income being earned in Australia, and your spending in Thailand... because you might find yourself without sufficient income to cover your immediate needs... that is why you should think of having enough in Thailand to cover you for the ups and downs of the market in Australia... the income in Thailand will be directly linked to the economy in Thailand... Well, i currently earn money in thailand, and can continue to, but being in chiang mai i'll never get ahead, they pay so little. Does that change your advice a bit? I'm planning on continuing to earn money even if i sell the house and have this extra money. I think you've been very clear with what you say here, but money confuses me a lot. So, can i check my understanding: as the economy succeeds, interest rates for savers increase? And as it falters they reduce interest rates to persuade savers to spend more to stimulate the economy? And you say the value of (i presume) other currencies is going down everywhere in the world, but going down in relation to what? And i think i know that the aussie dollar is strong because of the mining and chinese buying from them. I also wonder if the thai baht will start to weaken in the wake of this government borrowing two trillion baht was it? Link to comment Share on other sites More sharing options...
femi fan Posted November 13, 2012 Author Share Posted November 13, 2012 Incidentally the gold idea was simply to have something that's not money. It seems to me that it's no certainty that we can't avoid a global collapse, and then china goes down too because no-one's buying their products any more, and therefore oz goes down because they can't sell their raw materials to china any more. Where does thailand fit into this rather pessimistic picture??! Link to comment Share on other sites More sharing options...
Naam Posted November 13, 2012 Share Posted November 13, 2012 I also wonder if the thai baht will start to weaken in the wake of this government borrowing two trillion baht was it? in which Chiang Mai pub did you hear that fairy tale? Link to comment Share on other sites More sharing options...
Asiantravel Posted November 13, 2012 Share Posted November 13, 2012 I also wonder if the thai baht will start to weaken in the wake of this government borrowing two trillion baht was it? in which Chiang Mai pub did you hear that fairy tale? http://www.nationmultimedia.com/business/Majority-economists-support-Bt2-2tn-borrowing-bill-30192988.html Link to comment Share on other sites More sharing options...
Naam Posted November 13, 2012 Share Posted November 13, 2012 I also wonder if the thai baht will start to weaken in the wake of this government borrowing two trillion baht was it? in which Chiang Mai pub did you hear that fairy tale? http://www.nationmul...l-30192988.html only a milkmaid would consider that this kind of money can be borrowed tomorrow and spent next week on infrastructure. therefore case "THB 2.2tr borrowing = weakening Thai Baht" closed. Link to comment Share on other sites More sharing options...
femi fan Posted November 13, 2012 Author Share Posted November 13, 2012 I also wonder if the thai baht will start to weaken in the wake of this government borrowing two trillion baht was it? in which Chiang Mai pub did you hear that fairy tale? Not sure what you mean, but i've warned the thread that i'm not good at money and economics! it's just me wondering. Unless you mean that the government didn't borrow two trillion baht? My understanding of spain, portugal, and greece for example is that they're in their problems due to excessive borrowing as nations. Link to comment Share on other sites More sharing options...
femi fan Posted November 13, 2012 Author Share Posted November 13, 2012 Oh. Well i'm not making a case for that at all. And i hardly get to chiang mai pubs any more anyway! There is one heck of a lot of development going on in chiang mai. Does this mean then in your view that thailand would be relatively strong in any collapse of european or american economies/currencies? Link to comment Share on other sites More sharing options...
jamescollister Posted November 13, 2012 Share Posted November 13, 2012 Oh. Well i'm not making a case for that at all. And i hardly get to chiang mai pubs any more anyway! There is one heck of a lot of development going on in chiang mai. Does this mean then in your view that thailand would be relatively strong in any collapse of european or american economies/currencies? There is a hungry monster to the north, it may grow and slow, but it will not die. China will buy from anyone and Thailand will supply what it has, be it food, rubber, oil. cassava. or anything else. Barring warthe world will get better and China will grow. Jim Link to comment Share on other sites More sharing options...
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