CrowdFund Talks - Australia
chengchai last edited by kaeley-wn
Anyone has any experience with P2P lending in Australia?
Please share your experience and advice. Thank you.
Below list based on https://www.youtube.com/watch?v=wXHVi3zakMM by Nicholas G. Muscat
Thanks for bringing this up @chengchai
Should be interesting to find out about. But given that Australia's tax is normally quite high i'm not sure how much that would eat into returns for foreign investors.
On the other hand, Aussie dollar seems stable (the one reason why I haven't really been keen to put money into Indonesian Rupiah)
@chengchai are you an Aussie resident?
For non-residents, every dollar would be taxed, according to the link you shared:
Looks like the tax for higher income (>90,000) is set to increase as well.
Correct me if i'm wrong!
Wow. The non-resident tax for the 1st bracket ($ 0 - $ 87K) is at 32.5%.
That is super duper high.
@ktinvest indeed... given the risks associated with p2p lending in general, don't think it's a good move? Not sure if the returns are significantly better / default risks are lower in aussie though.
rajpuga last edited by rajpuga
Personally I think p2p investing anywhere other than your home country is not really worth it because of:
Taxes, including taxes for non residents
Insufficient knowledge of the market
So I am sticking with what's available here in Malaysia.
chengchai last edited by
@chekmeng Well spotted! Very high indeed and is no go for me as I am not a redident.
@chengchai thanks for sharing! It's interesting since P2P Lending for individual borrowers exists in Australia but not in Malaysia nor SG, where all the P2P crowdfunded loans are dedicated towards serving businesses.
It'd be useful to segregate the platforms in Aussie into:
- ThinCats Australia
Personal loan financing:
Do add on if I missed any!
chekmeng last edited by chekmeng
Something extra to note: Australia's personal debt reported as (edit: one of the) highest in the world!
@rajpuga and exchange rate risk
@chengchai I reached out to True Pillars:
Unfortunately, we are not currently able to register non-resident investors at this time as we need to confirm investor identity against Australian sources (eg driver’s licence, electoral roll, etc). It is in our plans to look at this again during 2018 so if you’d like to stay in touch you could consider registering to receive the monthly newsletter here where we announce all updates to our platform.
chengchai last edited by
@chekmeng Noted and thank you for sharing!
Good news, Marketlend accepts investors beyond Australia:
We will require you to send one valid ID with your address on it and one supporting document. It could be a form of utility bill, bank statement or something similar.
In regards to fees on withdrawals, there is no charge for it.
interesting that MarketLend's crowdfunding process involves bidding.
There is a Maximum interest rate per Listing, depending on their risk rating.
and it depends on you, if how much interest rate would you like to put, either you max the interest rate or you can lower your interest rate.
(setting a lower bid) It's assurance that your bid will be accepted by the system, in some case those bid at a max interest, their bid might be outbid if some investors will bit at a lower interest rate.
jackm last edited by jackm
@rajpuga i agree, especially some country p2p lending ROI is below 5% after all the charges, service fee and taxes. Not worth the time, effort and risk expose to currency fluctuation, at least for now due to weak Malaysian Ringgit.
bt last edited by
@chekmeng For interest income NR Withholding tax of 10% typically applies.
@bt hmm lesser than singapore. its 15% in SG.
What are the returns like? after taxes & service fees?
There is an interesting FX angle to this as well. Just like the IDR, the AUD has been depreciating to the SGD and is now around the psychological 1:1 mark. If you have faith in the Australian economy (vs Singapore) then there is a potential for FX appreciation too.
Thank you for the information. At the first thought, I would think that it is a good source of diversification till I saw the tax rate shared here.
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