So we hear about these overseas investors buying up Australian properties. I'm curious about the financial mechanism for this - how do people get their overseas wealth into the country to pay the 1M+ for a Sydney property? I imagine they don't use Wise at that level. Or do they? In the spirit of OzBargain, is there an expensive or inexpensive way to do it?
I promise I am not a criminal. I don't have the physique or the people skills.
I learned what this was from Animal Kingdom.
Just use the normal bank transfer. No question asked.
Don’t believe everything you read
Getting the money into Australia isn’t hard, it’s just a bank transfer. What needs to happen is to find someone who is allowed to buy Australian property to be the owner. And trust them not to run off with all your money / assets.
Then you just transfer the money to them. At the moment there are a few loopholes in the KYC regime, which are being fixed. However that doesn’t really matter anyone from the Australian side of things.
Say an overseas investor wants me to buy on their behalf. I sign the contract, they ‘lend’ me the money. I buy the property.
Does it happen as much as people say - no, not at all. Why would you buy an illiquid asset through a third party with limited recourse, when there are so many other ways to get your money out if your own country
I am a trustworthy person that is allowed to buy property, pm me for bank details.
It happens much more when your relatives live here
Pretty sure it is just a regular bank transfer …..
But as someone who whos bank balance is currently sub $200 i wouldnt listen to me
wedged between 2 boogie boards
Swift payment.
Standard bank transfer with the associated fees?? (Seems not with the majors)
Few examples
https://www.commbank.com.au/personal/international/internati…
https://www.nab.com.au/personal/international-banking/transf…
If you need international bank cheque - many banks aren't even doing these now and point you to the above.
I would assume large OS banks are the same.
Buying and selling eneloops on the black market.
1M is a house deposit these days, not an actual house in most metro areas… Just a regular bank transfer…
buying anything in the Eastern suburbs of Sydney and you are only slightly exaggerating
Transferring money into Australia is easy. Getting it out of the other country is where they run into restrictions.
Carrying $10k in cash when travelling out of the country is the slow option.
When transferring little less (around 40k) bank fees were percentage, but no more than $300. Which is nothing for $1m.
Does bank really make nothing out of currency spread?
Exchange rate was normal, nothing fancy like 5-10% difference.
$300 fees but they eat you up on 5-10% spread? I was thinking something like 2%, on a $1m thats $20k+that$300 =$20,300?
The like of Wise makes 0.228% fees but they gave you spot rate (0% spread).
This is why they warn on other's seemingly good fees but bad in exchange rate.
@foxmulder: Did a compare (as long time wise user) and found out that bank fees + rates were better compared to wise.
Just do your homework before doing something like that.
I guess you don't read the news …
Normal bank transfers … Banks got huge fine previously … Not all transactions are legitimate and banks cannot catch it 100% perfect all the time.
The money can also go through currency exchange and money remittance service like this one:
https://www.theguardian.com/australia-news/2023/oct/26/curre…
Or this one (looks like cryptocurrency too, besides bank transfers):
https://www.abc.net.au/news/2023-02-02/afp-sydney-money-laun…
"It's alleged the group circumvented laws preventing people in Australia transferring money out of China by using a broker linked to the syndicate to obtain funds in Australia.
The group allegedly charged a 10 per cent fee and required customers to deposit the value of the money obtained by the syndicate into a Chinese bank account it controlled."
Bikies
They got wings?
Gift cards
EDIT: Be a disability support worker and buy gift cards on the behalf of someone with a disability
EDIT: Be a disability support worker and buy gift cards for yourself to use on groceries and then claim them on tax as a gift for the recipient.
Small Diplomatic Bag
Submarines
BITCOIN
0.5 Richard milles
find a few mates and strap some cash on them and travel back
i will do it!
What devious means do people use to transfer 1M+ into Australia?
You have it around the wrong way…. Its not so much about getting money into Australia, but more so about getting the money out of the country they come from.
China for example isn't overly friendly to just let you transfer large amounts of money out of the country without questions. So buying a 'house' is one way to get the funds out. Once out and the house is resold down the track, surprise surprise the money doesn't go back to China.
You now have moved large wads of money from China to an Australian bank account.
So buying a 'house' is one way to get the funds out.
Are the authoritarian, despotic authorities of such an oppressive regime actually that stupid and naive?
Not too sure it works that easy.
Now, if the one transferring or the recipient is part of, or related to (being bought), to that despotic authoritarian authorities then categorically yes.
Are the authoritarian, despotic authorities of such an oppressive regime actually that stupid and naive?
Happy to hear your views on the topic other than you think I'm wrong with nothing to back it up with.
I often wonder the same as well. I have seen Chinese spend $10M+ buying big mansions. There are actually two questions:
1) How did they get the money out of China?
2) How did they get that amount of money into Australia?
Bank transfer
Don't use a bank transfer, use an international money transfer service e.g. xe.com
They will give you better rates/fees, which on large money transfer will make a huge difference.
Perhaps opening an FX account will help. Then convert to AUD as needed.
Chances are it will be USD or Euros or Pounds or Chinese Yuan. HSBC (and many others) will have you cover.
Is Wise a good one to use? What is their limit transferring in or out of the country? How about Ozforex or XE? My wife was transferring money to another country using remitly and eventually she was blocked. We opened an account in my name but I'm guessing it will only be a matter of time until I am blocked to. There's no way we sent large amounts. Under $100,000 in less than 8 months while we were living overseas.
As you are not a criminal there is no limit on transferring funds into Australia via normal banking channels.
You can even bring as much cash or cash equivalent into Australia as long as you declare it, and you may be asked to show the source of funds.
https://www.austrac.gov.au/individuals/moving-money-across-i…
https://www.rba.gov.au/fin-services/resources/cash-report.ht…
Most people use banks.
Then they do a bank transfer …
Yes, governments authorities at both ends will know about it.
Banks are a rip off versus money transfer services though, right?
OFX
Steam games refunds
Shopback cash out
Hawala