Expat Finance Management

[sabre_ac]

I'm curious to hear how Aussie ex-pats on this board manage their finances/investments and properties in Australia as a non-resident.

Particularly:

How do you transfer money around?

Have you found a way to purchase Australian shares / ETFs in Australia with AUD from your Australian bank account without a complex broker arrangement?

Have you purchased property while aboard and if so, did you calculate the financial hit you took as a non-resident and then any analysis on whether it's a worthwhile investment overall? Australian property I find is very personal and it's hard to look at it as an investment without the emotional side of owning a piece of the homeland.

Through my limited research, I've found that having an HSBC account in your current country and having one in Australia seems to be the best/safest/most comforting way to move cash around. Happy to hear from those who have this arrangement or who have found a better one.

Opening a term deposit seems difficult without being present in the country with the major banks and none seem to allow you to open an investment account, even if you have a legacy banking account.

 

[Flog111]

I'm curious to hear how Aussie ex-pats on this board manage their finances/investments and properties in Australia as a non-resident.

Particularly:

How do you transfer money around?

Have you found a way to purchase Australian shares / ETFs in Australia with AUD from your Australian bank account without a complex broker arrangement?

Have you purchased property while aboard and if so, did you calculate the financial hit you took as a non-resident and then any analysis on whether it's a worthwhile investment overall? Australian property I find is very personal and it's hard to look at it as an investment without the emotional side of owning a piece of the homeland.

Through my limited research, I've found that having an HSBC account in your current country and having one in Australia seems to be the best/safest/most comforting way to move cash around. Happy to hear from those who have this arrangement or who have found a better one.

Opening a term deposit seems difficult without being present in the country with the major banks and none seem to allow you to open an investment account, even if you have a legacy banking account.

Which country have you moved to?

I wouldn’t mind buffering off and renting out my house lol.

 

[sabre_ac]

Which country have you moved to?

I wouldn’t mind buffering off and renting out my house lol.

North America.
Do it! I’ve had a few stints abroad and never regretted it.


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[bullish23]

4 points;

1. Have bought oz property whilst based overseas, and it’s no issue unless you sell whilst non-resident. So buying is fine, selling is crazy oz tax planning.
2. Do not invest in ASX from an Australian broker account if living OS e.g. Commsec. Do so via Interactive Brokers or something similar from your resident country. That limits your tax exposure to only WHT on ASX stocks.
3. Multi currency HSBC accounts are great. I have one in my resident country, but not in Australia. When I send funds from OS to oz account (non-HSBC account), it usually arrives same day.
4. You can open online savings accounts in oz as a non-resident with the bonus interest etc. You do however often need an Australia address as a mailing option (just use a relatives) and often an Aussie mobile number to receive initial online pin numbers. Other option is buying a money market fund through IB (see point 2).

 

[sabre_ac]

4 points;

1. Have bought oz property whilst based overseas, and it’s no issue unless you sell whilst non-resident. So buying is fine, selling is crazy oz tax planning.

That's also in the back of my mind, even after moving back and becoming a resident, you're going to get hit tax-wise on the period you were a non-resident.
Do you know if any of the common tax treaties help?

2. Do not invest in ASX from an Australian broker account if living OS e.g. Commsec. Do so via Interactive Brokers or something similar from your resident country. That limits your tax exposure to only WHT on ASX stocks.

Interesting, does that require you to transfer the money out of Australia? I'm interested in option of leaving some funds in an Australian bank account to invest locally so I have access to them when in Australia.

3. Multi currency HSBC accounts are great. I have one in my resident country, but not in Australia. When I send funds from OS to oz account (non-HSBC account), it usually arrives same day.

Have you compared the cost of moving funds around to alternates like Wise? I assume having all your funds within the same bank has a certain security.

4. You can open online savings accounts in oz as a non-resident with the bonus interest etc. You do however often need an Australia address as a mailing option (just use a relatives) and often an Aussie mobile number to receive initial online pin numbers. Other option is buying a money market fund through IB (see point 2).

Right, good to know, I assume you don't need the Aussie mobile number if you open the term deposit with an aussie bank you've already got a normal everyday bank account with.

Some great insights! Thank you

 

[bullish23]

That's also in the back of my mind, even after moving back and becoming a resident, you're going to get hit tax-wise on the period you were a non-resident.
Do you know if any of the common tax treaties help?

I have a general feeling for the tax codes, but obviously best check on specifics. I don’t think tax treaties help with CGT. Tax treaties are usually just for Interest and Dividends etc and how WHT kicks in. My understanding is non-resident doesn’t get the cgt discount on real estate but once you return to oz and become a resident the discount kicks back in. Again best double check.

Interesting, does that require you to transfer the money out of Australia? I'm interested in option of leaving some funds in an Australian bank account to invest locally so I have access to them when in Australia.

I guess I was assuming you were earning funds abroad which you would open an IB account with. OF course you could transfer abroad as well.

Have you compared the cost of moving funds around to alternates like Wise? I assume having all your funds within the same bank has a certain security.

I use to use OFX, heard wise is also good. I get fairly competitive rates with my bank, so I just prefer the less hassle of needing a third party.

Right, good to know, I assume you don't need the Aussie mobile number if you open the term deposit with an aussie bank you've already got a normal everyday bank account with.

I just don’t see why you would want to go the term deposit route. The online savings accounts are higher rates as long as you don’t withdraw during the month (some even allow one withdrawal).

On the mobile my bank required it to send a one time code, but maybe others use email address etc., and yes the whole process is generally easier if you already have an internet banking facility already open. Obviously I can’t comment as to every bank whether they need a mobile number or not.

Some great insights! Thank you

No prob