mark warner

hi all

just wondering ,does anybody know if the bond money we have to invest will be able to gain interest or worse still make a loss,or is it a case of we invest 100k we get back 100k.
also is there a timescale from the time bond is requested to when they must receive it as i was'nt planning on selling the house until we are absolutely certain we can go.hoping for brisbane area tra passed as a carpenter main application submitted 5th april 2003 not expecting any news this year.

cheers all

mark

debsy

Hello Mark

We submitted our PC and meds and they were received by 17 June. We received our request for the bond on 3 July and will have 49 days to lodge it with relevant authority. I hope that you get back the 100k in full!!

chippy

The current interest rate being offered (depending on who you invest with ) is between 3.5% & 4%. I think that is probably better than what you will get here. You get 49 days to sort it out, buy that includes clearance of funds etc, so really it is less.

cresta57

Slater

Unfortunately you will probably get about 4% on your money over the year, I say unfortunately because it is because of Aussie interest rates have stayed high and unchanged that the A$ has remained so strong. Swings and roundabouts though, if they had reduced the rate last week, it could have caused further increases on the property market because of more affordable mortgage rates.


Slater

jsg

There are two other issues with the return you get. The interest is taxable in Oz. If you don't have a taxpayer number by the time they pay the interest (normally six monthly), they'll deduct tax at (?) 48%. And when the 12 months is up, if you plan to take the money back to where it came from, you might gain or lose on the exchange rate. This could dwarf the interest you get.

I think they tell you on the request how long you have to make the investment. Normally 49 days from the date of the letter? You could ask for an extension, but they could say no.

Alan Collett

Hello Mark.

The investment has to be made with one of the specified State or Territory Treasury Corporations:
http://www.gomatilda.com/news/article.cfm?articleid=155

The investment is similar to monies deposited with a bank or building society for a fixed term - you get the capital of $100k back 12 months after you have lodged the monies (subject to the State/Territory not becoming insolvent => unlikely), and in the meantime you receive interest, which is typically beween 3.5 and 4.0 % at the moment.

The interest is taxable in Australia if you are living there when the interest is paid, and if you are in the UK when the interest is paid the interest will be subject to withholding tax at 10% (and will be taxable in the UK).

The investment is usually requested as the very last stage in the application process, and in the letter requesting that you lodge the monies the case officer will give you the standard 49 days to arrange the investment and to confirm the same. If you need longer I suggest that you contact your case officer and appraise him/her as to how long you think you will need to lodge the monies ... once you have been asked for your medicals and penal reports I would start making arrangements so that you can lodge the $100k investment within a month or three thereafter.

Hope this helps.

Paul and Steph

Hi Mark

If you wanted to raise funds in advance of house sale, you could approach your lender and look for a further advance, repayable on sale of property. This is what we did and it took approximately 2 weeks to have funds credited.

Steph

mark warner

thanks to all for the info, very friendly too.

regards

mark