Hi – can any NZ property investors out there help us? …
We want to buy investment properties in NZ but are not sure what type of structure would best suit (eg, partnership, company, personal or trust). I’m getting conflicting information and could use some clarity. Here is some background on our situation:
1) We are New Zealanders living in Australia (eg, we are residents for tax purposes in Australia).
2) Our objective with the house investments is to build up a portfolio of positive cashflow residential properties.
3) We’re looking to purchase houses for approximately NZ$45k (with $10k deposit) and then rent out for approx $125 p/wk. We’d use depreciation expenses to make a book loss and our goal would be just to pay interest only on our mortgage to maximise cashflow.My question is this – should we buy the houses in our own name so that the loss (albeit a book loss) can be applied against our Australian tax? …
Or should we set up a LAQC (Loss Attributing Qualified Company) in NZ and accumulate the losses in the company? Can we apply those losses to our Australian income? …
Or, alternatively, does a NZ-based ‘partnership’ structure make more sense?
Any insights would be much appreciated – regards – Denise
[:o)]Hi Denise,
We have set up a trust structure for NZ.
There are lots of COMPLEX tax issues, and so I would advise you to seek good PROFESSIONAL ADVICE from an accountant or solicitor in NZ.
Nobody here can really answer your question, as we don’t know enough about your sitution.
If I were you, I’d probably consider becoming a resident of NZ again, to avoid all the tax issues!
Good luck,
Del
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