How To Invest About 300,000 Aussie Dollars - There Or Here?

[Rowdy100]

Interesting thread... OP, be aware that cash in the bank in Aus is OK earning 4-5 % interest annually..and its government guaranteed should the financial "armageddon" arrive.... which it prob won't....IMO.... but you will also be required to pay tax on whatever income you get from your deposits... think 1/3... approx. 30 % of whatever money you make from your deposits... so on 300 K at 4.5 % you will make approx. 13.5 K per annum in interest....and lose 4.5k in taxes, meaning you will net 9k per annum...so reality is your "actual" return is about 3 %....

So arguably your best option (in terms of return) may be to re-invest in property somewhere in Aus and rent it out... you then have income from the rental, plus you have potential capital growth...and you can also claim deductions from the tax department on any income.. the risk side is that you may not get capital growth, but whatever happens you will still have an income from the rent... there are more "headaches" with buying a property and renting it out, but if you are worried only about getting a higher return on your money.... property is still pretty sound in Aus. despite the doomsayers saying that the aussie market is over-cooked... it may be in some areas...but there is still a housing shortage in many parts of Aus. so if you buy well, you will get good rental returns and more than likely some capital growth on your investment as well... plus there are the tax deductions, which means you get better a return when it's all said and done...

The simplest thing to do is just stick your money in an Aussie bank account and take the interest.... but this is not as good as it looks as you do have to pay taxes as well... plus add on inflation, and after all that...leaving large (ish) sums of cash in a bank account is not a great investment strategy in terms of gaining great returns.... though its certainly the easiest and "safest" option.

As you have said, you are not overly "big" on ideas on what to do with your money...so maybe it's best to just stick it in a bank and sit back and wait until you learn more...or simply sit back and relax, knowing that you've got a nice nest-egg stashed away.. (there is a definite feeling of well-being knowing that you have access to some decent cash should you ever need it)...

Good luck...but if it were me, I would not be "investing" in Thailand... Australia has a much more robust finacial system and depsite the slowing down of China, Australia is well situated to coninue to be a fairly safe bet in the near/medium term.....and no reason why it wont continue to be a good long-term bet as well... and let's face it, Thailand is a great destination for spending money, but not so great for "making or keeping money"....imo..

Cheers

Rowdy

[Naam]

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.

my "fairy tale" refers to the 2.2trn borrowings which will "weaken" the Baht. investing US$ 72 billion ($72'000'000'000) to improve a country's infrastructure takes years even though some of that money might not be used efficiently. spending the afore-mentioned amount over 8-10 years is a financial non-event for a country like Thailand which sits presently on foreign currency reserves of US$ 180 billion ($180'000'000'000), tendency UP.

Spain, Portugal and Greece are in deep sh*t mainly because its citizens borrowed excessively, living before, but especially since the inception of the €UR (which reduced interest rates from 16-20% to 4-5%), the proverbial mediterranean dolce vita, enjoying siestas and their favourite pastime of evading taxes. add to that fantastic social spendings, black market and under the table economy and you get the result we are seeing presently.

[simple1]

OP: Assuming your bank in Australia has your TFN and you are not generating any other income other than your interest on A$300k, no tax is payable. You would need to process your annual tax return, but this can be done from Thailand electronically at www.ato.gov.au. The downside is if you haven't been submitting tax returns whilst living in Thailand you could expose yourself to grief from the ATO. You can use an Australian accountant for a simple tax return perhaps a $150 - $250 fee. Individual tax rates at:

http://www.ato.gov.a...583&mfp=001/002

Edited November 14, 2012 by simple1

[PattayaPhom]

The difference between 3.5% and 4,5% on a small amount like this is nominal, so split the funds 50/50 between here and Oz

[Naam]

Good luck...but if it were me, I would not be "investing" in Thailand... Australia has a much more robust finacial system and depsite the slowing down of China, Australia is well situated to coninue to be a fairly safe bet in the near/medium term.....and no reason why it wont continue to be a good long-term bet as well... and let's face it, Thailand is a great destination for spending money, but not so great for "making or keeping money"....imo..

how did the "robust" Aussie currency fare vs. "not so great" Thai Baht in a crisis like we saw in 2008? let's have a look... OOPS! losing one third of its value in just three months:

[Naam]

The difference between 3.5% and 4,5% on a small amount like this is nominal, so split the funds 50/50 between here and Oz

if you don't need cash you might ride out the currency movements. if you need cash or don't have the stomach to see your nest egg losing more than six times your interest advantage you might find yourself between a rock and a hard place. fluctuation AUD THB in one year plus/minus 10%!

[tingtongtourist]

if i was in same situation:

AU$ 30k, or 1 million baht in a Thai bank for living expense here.

AU$ 200k in term deposit in Aus. Also i think possible to get higher rate than other posters say here.I get 5.8% right now

AU$ 70k i would use for diverse investment:maybe buy gold would be ok but expensive now, maybe see some opportune time in the future?

Probably not so good but if you ever have experience in share trading could study this as an interest?

Even a portion of the 70k you could afford to use in a higher risk investment to get better rate?

i believe you can find many financial product that offer higher return in Australia.

During that time if you live in Thailand 1 million baht should last a decent time

My best advestment advice for Thailand: dont

2nd best advestment advice in Thailand: dont live with Thai lady!

[tingtongtourist]

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.

im just interest to know..why is it you want to sell your house?

i would think it a good investment that will keep working for you?

When you talk about Aus and $...I believe Australian financial system has a pretty good protection from the global trouble.At least the Aus $ did seem to stable, even rise when all this happen.

I dont think mining boom will slow down anytime,the government seem crazy to sell everything it can now.

But 1 issue for you to consider, sometimes the Aus government do not like this high dollar for many of there own reason and i dont think they will tolerate for long before they try to make it lower.

If i was you i would to take advantage of this current exchange rate while you can and exchange at least some living money into thai baht in the thai bank.

Also the interest rate in Aus lowers again recently and i believe it is at the floor now. I would hold off selling your house at this time for now and wait for Aus interest rate to rise a little

[Khun Jean]

Another view at 'investing':

If it is to be more independent of work and economy lowering your monthly bill can have a good roi.

Renting can be cheap, but if you pay 10.000 now you will probably be paying 20.000 in about 10 years. Meaning the cost of housing will go up. Your salary will probably not double in the same timeframe.

If you have cash on the bank you have to make sure it gets more than inflation otherwise the 'value' of that money is lower every single day.

Buying a condo to live in can therefore be a good 'investment'. From day one you don't have to worry anymore about being able to pay the rent. And if you are still working it means 10.000 baht now and 20.000 baht in the future every month extra available.

Look at the items on your monthly costs and try to lower them considerable. Energy for instance, if you use the airco a lot try living with a fan. It might take a few weeks but after that you are used to it. Another 2-3000 baht a month. If you really can not without 'invest' in an inverter that saves about 40-50% on your electricity bills. Buy quality stuff, costs more initially but does not have to be replaced many times and your enjoyment of those things will be greater.

Unfortunately we live in high inflationary times, which means cash is not as good as it was. Convert it into as much 'value' (physical things) that will lower your monthly costs as possible. 'Investing' in knowledge or trade is another good thing

All these things can be done by just using common sense, instead of investing in currencies, bonds, stocks which probably wipe you out in a few months if you are not careful and knowledgeable.

Some gold never hurts. And in Thailand getting physical gold is very easy. It has a reason that Thais like gold, they had some history with devaluations and inflation, so they can appreciate value.

Edited November 14, 2012 by Khun Jean

[tingtongtourist]

Another view at 'investing':

If it is to be more independent of work and economy lowering your monthly bill can have a good roi.

Renting can be cheap, but if you pay 10.000 now you will probably be paying 20.000 in about 10 years. Meaning the cost of housing will go up. Your salary will probably not double in the same timeframe.

If you have cash on the bank you have to make sure it gets more than inflation otherwise the 'value' of that money is lower every single day.

Buying a condo to live in can therefore be a good 'investment'. From day one you don't have to worry anymore about being able to pay the rent. And if you are still working it means 10.000 baht now and 20.000 baht in the future every month extra available.

Look at the items on your monthly costs and try to lower them considerable. Energy for instance, if you use the airco a lot try living with a fan. It might take a few weeks but after that you are used to it. Another 2-3000 baht a month. If you really can not without 'invest' in an inverter that saves about 40-50% on your electricity bills. Buy quality stuff, costs more initially but does not have to be replaced many times and your enjoyment of those things will be greater.

Unfortunately we live in high inflationary times, which means cash is not as good as it was. Convert it into as much 'value' (physical things) that will lower your monthly costs as possible. 'Investing' in knowledge or trade is another good thing

All these things can be done by just using common sense, instead of investing in currencies, bonds, stocks which probably wipe you out in a few months if you are not careful and knowledgeable.

Some gold never hurts. And in Thailand getting physical gold is very easy. It has a reason that Thais like gold, they had some history with devaluations and inflation, so they can appreciate value.

As for buying the condo.Good advice on paper if you in your own country and can understand the laws but very little protection for the farang here.

I wouldnt trust at this amount of money as laws change anytime here and everyone know Thai do not like foreign ownership of anything.

other reasons: Condo prices here are over the top IMO.

Then have to worry about body corporate fees and condo management company not to be trusted in any country let alone Thailand.Can make up new policy and rule whenever they want,change charges and cost and you have no choice but to take it up the kazoo.

also re-sale price on condo..not good and hard to sell here, then you have to trust thai lawyers

also as well as all this is lifestyle of living in condo.cant choose your neighbours and get a few crazies near you and life be like living in hell.

in my last appartment here i leave because some !#$%wit will not stop cooking rotten fish and it go through the whole building with no escape.Also soi have crazy !#$%wit dogs who will chase you every time and owners will not do a thing

cannot leave so easily if i did own the appartment.

if you want to buy condo to rent well all i can to say is good luck! the Op is already sick of the stress of renting his house in Australia

condo ownership Thailand = defining of headache!

[Khun Jean]

tingtongtourist is an good name because your post is from start to finish complete rubbish.

BTW is it not time for another visa run?

Edited November 14, 2012 by Khun Jean

[tingtongtourist]

tingtongtourist is an good name because your post is from start to finish complete rubbish.

BTW is it not time for another visa run?

oh joy,another visa nazi

zzzzzz

[chainarong]

Both have a future , it's just deciding what sort of future, there is rough weather ahead, you need to see someone about the laws of investment in both countries , Thailand's can become a bit tricky for foreigners and Oz ,well the tax laws are so horrific even the Indians that run the ATO haven't a clue, I'd be careful of Thailand you probably wont have much recourse if things go arse up, not that you would in Oz either Id invest in Tea.Time for a cuppa

[Naam]

Both have a future , it's just deciding what sort of future, there is rough weather ahead, you need to see someone about the laws of investment in both countries , Thailand's can become a bit tricky for foreigners and Oz ,well the tax laws are so horrific even the Indians that run the ATO haven't a clue, I'd be careful of Thailand you probably wont have much recourse if things go arse up, not that you would in Oz either Id invest in Tea.Time for a cuppa

the OP has the choice to invest in Thai Baht or OZ Dollars or a combination of both currencies outside Thailand and outside OZ without paying any taxes on his income.

where's the problem?

[Jobo]

OP: Assuming your bank in Australia has your TFN and you are not generating any other income other than your interest on A$300k, no tax is payable. You would need to process your annual tax return, but this can be done from Thailand electronically at www.ato.gov.au. The downside is if you haven't been submitting tax returns whilst living in Thailand you could expose yourself to grief from the ATO. You can use an Australian accountant for a simple tax return perhaps a $150 - $250 fee. Individual tax rates at:

http://www.ato.gov.a...583&mfp=001/002

He has said he is not Australian so presumably he has no Australian TFN! If that is the case he would be considered non resident for tax purposes and therefore any interest earned would be subject to witholding tax of 10% only. At most with A$300,000 a term deposit might yield a max rate of 4.50% now.

[Jobo]

Both have a future , it's just deciding what sort of future, there is rough weather ahead, you need to see someone about the laws of investment in both countries , Thailand's can become a bit tricky for foreigners and Oz ,well the tax laws are so horrific even the Indians that run the ATO haven't a clue, I'd be careful of Thailand you probably wont have much recourse if things go arse up, not that you would in Oz either Id invest in Tea.Time for a cuppa

the OP has the choice to invest in Thai Baht or OZ Dollars or a combination of both currencies outside Thailand and outside OZ without paying any taxes on his income.

where's the problem?

Naam is it not the case that foreign currencies deposited offshore may get a lower interest rate than the same currency invested offshore?

[SiamRose]

The first rule of investing is: Diversify. This just means don't put all your eggs in one basket. No one can tell you for sure whether A$ or Bt will do better or if one will have collapse, so its better to hedge your bets so that whatever happens you are not wiped out. Keep some money in Oz and some in Thailand.

If you don't want the hassle of owning property in Australia you probably don't want the hassle of owning property in Thailand. But if you don't already own the place where you live, then think about buying property for yourself to live in. Once you have accommodation covered its much easier to keep monthly living expenses low, and keeping your living expenses as low as possible is the best way to prepare for any Global Financial Disaster which may or may not be on the way.

[Naam]

Both have a future , it's just deciding what sort of future, there is rough weather ahead, you need to see someone about the laws of investment in both countries , Thailand's can become a bit tricky for foreigners and Oz ,well the tax laws are so horrific even the Indians that run the ATO haven't a clue, I'd be careful of Thailand you probably wont have much recourse if things go arse up, not that you would in Oz either Id invest in Tea.Time for a cuppa

the OP has the choice to invest in Thai Baht or OZ Dollars or a combination of both currencies outside Thailand and outside OZ without paying any taxes on his income.

where's the problem?

Naam is it not the case that foreign currencies deposited offshore may get a lower interest rate than the same currency invested offshore?

not necessarily but it applies to AUD for certain maturities but the difference should be still less than any income tax liability and perhaps hassles filing a return. a couple of weeks ago in Singapore the interest rate for AUD one month deposits was 3.45% and one year was 3.875%

[Naam]

He has said he is not Australian so presumably he has no Australian TFN! If that is the case he would be considered non resident for tax purposes and therefore any interest earned would be subject to witholding tax of 10% only. At most with A$300,000 a term deposit might yield a max rate of 4.50% now.

what maturity?

[Jobo]

He has said he is not Australian so presumably he has no Australian TFN! If that is the case he would be considered non resident for tax purposes and therefore any interest earned would be subject to witholding tax of 10% only. At most with A$300,000 a term deposit might yield a max rate of 4.50% now.

what maturity?

Major banks are quoting 4.40% for 12 months depending on amount.

Other banks 4.60% 2 months, same bank 4.60% for 9 months and another 5.00% for 3 months.

One year rates 4.50% to 4.75% depending on bank.

[femi fan]

Ahh, cheers to all, so many helpful people here on this forum! A lot for me to consider, and i've not had much time to internalise the advice on this second page of the thread. I shall do that shortly and be back with a few questions no doubt. Money and economics have always been a very weak point for me.

I must add that if i manage to sell the house i'm likely to have up to another 200,000 bucks on top of the 300 i'm talking about, so my idea is to bring bit that over to thailand and do whatever with it. Or, to put it into a situation such as naam refers to.

I am married, own our own house with my thai wife with usufruct in place just to be on the safe side (and a very farang-friendly thai lady lawyer), even though i feel most sure with my wife (yeah yeah, i've lived in thailand for 20 years so i know all the horror stories!!). So i have no rent or house costs each month except for utllities and live without aircon.

Back soon...

[Naam]

He has said he is not Australian so presumably he has no Australian TFN! If that is the case he would be considered non resident for tax purposes and therefore any interest earned would be subject to witholding tax of 10% only. At most with A$300,000 a term deposit might yield a max rate of 4.50% now.

what maturity?

Major banks are quoting 4.40% for 12 months depending on amount.

Other banks 4.60% 2 months, same bank 4.60% for 9 months and another 5.00% for 3 months.

One year rates 4.50% to 4.75% depending on bank.

i'm not exactly a financial greenhorn but as far as Oz interest rates are concerned i am lost.

reason: any major Australian bank can refinance (with collateral of course) with the Reserve Bank of Australia presently at 3.25% interest rate. even extrapolating that overnight rate does not result at 4.40% p.a. which

Major banks are quoting 4.40% for 12 months

there could be several reasons. e.g. strict evaluation of collateral, required minimum reserves for refinancing plus several others.

perhaps an Oz banker could shed some light on this?

[Naam]

Money and economics have always been a very weak point for me.

with AUD 500k cash and a home in Thailand you haven't done too badly

[Jobo]

And as I said you won't get those rates for A$ in Singapore or Hong Kong!

[femi fan]

Money and economics have always been a very weak point for me.

with AUD 500k cash and a home in Thailand you haven't done too badly

I got very lucky when the land became available at a ridiculous price, almost thai cost it was. That luck had always eluded me before!

I still haven't had time to digest what people are saying in more recent posts, but i'm very thankful that i started this thread and to people like yourself for coming along and helping. When i say that about money i think the thing is that i've never had spare money to invest. So i've never really researched it.

What i do know is that i won't be going anywhere near shares and things like that. I'm not really into making heaps of money, just trying to protect the money that i get, assuming i can sell the house. It's a dodgy world now, and trying to make sense of any impending currency collapses has me doing that research now. My idea for buying a bit of gold for example is simply to have an alternative to money, not to make money from the gold at a future date. It's just a different coloured egg really isn't it!!

[waza]

Aussie interest rate are dropping fast to compensate for the high $Au, and real estate prices are in a bubble, but if your willing to risk stocks Telstra pays about 8% in dividence

[mccw]

I would get a flat in oz and a condo in Thai for rental income + a stack of gold hidden away in case if emergencies. Spreads risk and the chance of better returns than just leaving it in the bank.

General disaster preparedness of water and food for a few weeks is a good idea given risks of storms, floods, fuel or currency crises etc.

[mccw]

Or 90% in Thai condos (maybe two for rent and one to live in) and 10% gold.

[simple1]

OP: Assuming your bank in Australia has your TFN and you are not generating any other income other than your interest on A$300k, no tax is payable. You would need to process your annual tax return, but this can be done from Thailand electronically at www.ato.gov.au. The downside is if you haven't been submitting tax returns whilst living in Thailand you could expose yourself to grief from the ATO. You can use an Australian accountant for a simple tax return perhaps a $150 - $250 fee. Individual tax rates at:

http://www.ato.gov.a...583&mfp=001/002

He has said he is not Australian so presumably he has no Australian TFN! If that is the case he would be considered non resident for tax purposes and therefore any interest earned would be subject to witholding tax of 10% only. At most with A$300,000 a term deposit might yield a max rate of 4.50% now.

Where did the OP say he is not Australian, he owns property in Australia and refers to his cash holdings in A$

[femi fan]

Or 90% in Thai condos (maybe two for rent and one to live in) and 10% gold.

I mentioned in the OP that i'm british. (in reply to simple1)

I can't buy in australia unless the rules changed recently. I was only able to get my property in the first place because i bought the land and built on it to the tune of at least half the value of the land.

I don't want to invest in buildings, i'm through with that. I want a simple life!

Edited November 14, 2012 by femi fan