Questions And Answers On Australian Investment Banks

Posted on June 15, 2011 by Admin

Susan asks…

Australian Tax: i borrowed from a bank to purchase land as an investment on interest only?

A) is the full intrest claimable as a tax deduation?
B) the land has dropped in value (thank you reserve bank) if i sell it at a loss is this claimable.
C) in short its turned into a disaster and im trying to sell, And re coup as much of my hard earn’t money as i can so any other advice would be appreciated
my income is approx 65K @ what rate/ percentage are these claimable if at all?

Admin answers:

Unless the land is earning assessable income, the interest is not deductible. All of those interests can be lumped up as part of the “cost base” of the land though. So when you finally sell the land, the capital profit (loss) is calculated as gross proceeds – less – what you initially paid for the land (and other relevant costs, such as conveyancing) – less – this lumped up interest that you can’t claim.
Unfortunately, as the first answer above outlined, if you end up with a capital loss, this loss cannot be offset against your other income (such as salary, dividend, interest etc). It can only be offset against your capital gain – if you have any. And if you don’t have any – you can just carry this capital loss forever until… Until one day you can offset it against your capital gain.

Kirstie asks…

Are there mortgages available from a UK bank for Australian property?

We have an investment property in Australia that is mortgaged through an Australian bank.

After our move to the UK last year, we would like to have this property mortgaged with a bank in the UK.

Is this possible?

Admin answers:

Yes, it is, i’m a Real Estate Agent in Sydney and a lot of our clients properties are mortgaged through Hong Kong Banks etc… Many through Rabobank and other non bank lenders as well.

Rachel asks…

Australian Banks and credit checks?

I don’t want the bank who holds my home loan to know anything about a credit card I have with another bank. When they do a credit check (I’m hoping to buy an investment property) will it be obvious I’m using the credit card or can I say I didn’t go ahead with it and not get found out I’m lying?

Admin answers:

If you want to see what the bank might see, why don’t you try to get your own credit report? It would be better to know what you actually have in the report, rather than guessing.

I personally will suggest D & B. I can’t remember how much they charge, but it’s not expensive.

Hope the above helps.

Cindy asks…

Investment Banking jobs in Australia for UK graduate?

Hi,

I have been looking at jobs in marketing (specifically Trading) in various investment banks. I live in the UK but really want to start a life in Australia, in addition to the fact that I really am quite sick of London! So I want to do an internship with an IB in Australia.

However, I checked on the site of JPMorgan (Asia Pacific) and it seems that they require that an applicant already have Australian citizenship, and that they would not sponsor a visa to Australia. Is there any particular reason for this?

Australia based Macquarie don’t say anything on their site, and am wondering whether they welcome applicants from other countries and would sponsor their visa?

I would really appreciate any help and experience any one might have.

Admin answers:

Try Morgan Stanley, they have large presence and may be able to sponsor you. Let me know if you want more info.

Nancy asks…

Because the Australian goverment guaranteed bank deposits, how will this affect other investments?

I just had a read of this

http://www.abc.net.au/news/stories/2008/10/23/2399807.htm

Do you think because of this people will put their money in federally guaranteed investments and the other forms of investments will fail?

do you think this will in turn have an affect on property values?

what else may be affected by this new goverment legislation?

Admin answers:

Their currency may become stronger due to a stronger backing. Government spending will go p because of this in times of depression, but being in a deficit isn’t strictly a bad thing.

Government investments have such a low interest rate, and the rates are growing lower by the day in these times. Other forms of investment may actually raise their rates so they look like better deals in comparison to the “safe” government insured investment.

Insuring consumer’s investments would only have a minimal impact on housing, if at all.

In addition, it may be just the push they need to dig out of this depression, as it makes money more “safe” from loss.

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