After considering a few options in Australia, I have decided that NZ just seems to attractive to ignore. Even if the market goes down a bit now, the savings in stamp duty and CG should make up for it. Maybe we will see more Australians moving to NZ to live!
I have a couple of questions which I hope people can help with:
– Is a trust the best way to go for tax purposes?
– Can anyone recommend a good accountant in NZ?
– Can you open a bank account in NZ even if you don’t live there?
– Can anyone recommend a good buyers agent/spotter?
– Is it possible for foreigners to purchase property in NZ or is this only open to Australians?Please feel free to email me with any information.
My online investing diary: http://retireyoungandwealthy.blogspot.com/
1. Is a trust best way to go for tax purposes?
Only your accountant can advise on tax stuff properly – as a general statement here, trusts are predominantly for asset protection, with tax minimisation benefits as secondary!! you will need to speak with an NZ accountant – a couple on the forum here if you do a search, and an Aussie accountant as well to make sure that your setup is best for you on both sides of the tasman.2.You can open a bank account in NZ without actually going there. one example (and there would be others) is ANZ where you deal with NZ branch but attend at Aussie branch to show proof of ID etc and the Aussie branch forwards onto NZ Branch for you…. so definitely possible.
I personally applied for finance and opened bank accounts and mortgages from Australia with a couple of different lenders without meeting the bank manager!!3. NZ investing is very open to Aussies, with little or no impediment to investing per se.
4. Suggest you do a search of the threads on NZ. there are literally hundreds of them on here with a lot of your queries discussed in more details.
Cheers
CDCastleDreamer
NZ Investor and Property Spottertokyo joe,
if you go ahead with your yen loan you wont be able to borrow AGAINNST AN INCREASE IN EQUITY AS YOU MIGHT THINK..Thanks for your comments. I have been doing more research in the last couple of weeks and slowly building up more information and gathering more contacts. I will apply for finance so at least when I come across a good deal I will have this ready.
If I get any good increase in equity I will probably sell and pay back the loan. A yen loan of 1.7% sounds great but the potential foreign exchange losses (and gains) is fairly risky.
My online investing diary: http://retireyoungandwealthy.blogspot.com/
Tokyojoe
Are you using Banner?
Yen/ $nz , now is not so good as it might be in 6months, so be prepared to have funds on a margin call for your mortgage if the exchange rate makes a reasonable correctionAre you a non resident for tax purposes would determine if it is necessary to set up a trust if you are living in Japan and your return date to OZ as well as your expected sale date of the property ,,,,…..you havent yet purdhased!!!!!!!
I use chris Raynall [email protected]
who was very helpful in setting up a trust.Hi Tokyojoe,
I see masteraccountants mentioned here. Quite a few Aussies are accessing his services for structure setup and accountancy in NZ…
CheersCastleDreamer
NZ Investor and Property SpotterI am planning to use Lloyds, NAB or ANZ. They all offer loans for overseas properties. I have contacted MasterAccountants and so far they have been helpful. I just need to find a good property!
My online investing diary: http://retireyoungandwealthy.blogspot.com/
dont bother with ANZ unless you have income of 150k or more. It will be a waste of time I cn assure you
NAB seem pretty strict on Margin callsI will be interested in the outcome. good luck
ggumpshots,
Thanks for the advice. I met with NAB and Lloyds last year. I want to get a couple of lower priced properties under my belt first using Ozzie finance before I look into a bigger purchase using a yen loan. If I take out a yen loan I would be looking for the biggest capital gains possible rather than positive cash flow and make the repayments from my salary as I don’t want to be sending money back and forth. Any suggestions?
P.S. Please check your private messages.
My online investing diary: http://retireyoungandwealthy.blogspot.com/
Gumpshots
Just to clarify – are you saying NZ won’t consider anyone on less than 150k for NZ/yen loans specifically?
cheers,
andrew.Hi Tokyojoe
I am from NZ and can recommend Matthew Gilligan from Gilligan Rowe & Associates. There focus is property and setting up the right identity for a investor. http://www.gra.co.nz
Cheers
dgardner
Investor and property finderRH Gardner
Not wishing to burst your bubble, but in New Zealand, if you buy a property with the puposes of making money on it, it is taxable as income at the full applicable income tax rate, Capital Gains Tax is irrelivent. The government recently turned down the need for capital gains tax, because income tax covers most scenarios.
The worse thing you can do is buy a property, do it up and sell it thinking you do not have to pay tax. This is naiive and the fact that some people do not declare this income and have not been caught yet, does not make it legal. My tax advisor is ex-IRD and keeps in touch with his old buddies at IRD – the main reason others have not had a tax demand is because the IRD have such a LARGE WORKLOAD already.
Regards
Dear TokyoJoe,
Have you considered using a Buyers Agent to assist you in securing the right investment in New Zealand and elsewhere?
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auCastleDreamer wrote:Hi Tokyojoe, I see masteraccountants mentioned here. Quite a few Aussies are accessing his services for structure setup and accountancy in NZ… Cheers CastleDreamer NZ Investor and Property SpotterI have just finished with these guys and the structure they set up for me had a major flore in it!…..
It is going to cost me quite a bit to get through it now that I am not using them as my accountants…..
I will not go into details….. however….Make sure you get a second opinion from a well versed expert to get set up correctly for now and for the future.
Try Company Solutions (Garth Melville) …. he is a specialist in both international and national structure setups.
Cheers,
KiwiHi all,
Word of caution on NZ, get good advise on your structure. I am more than likely, shortly, to sell my commercials in NZ back into individual names, BUT – thats because I have a NZ comp/trust structure, which it appears I will be punished for tax wise, when I return to OZ. My point is, that if your Aussie, keep your structure Aussie. And if anyone can come up with info on a better structure than individual names – please let me know.
ps. Very happy with the properties, good yields a little hard to find at present though.
Cheers
NZ- I went to a few different tax planners last year in OZ and NZ- to work out structures etc, as we buy , invest, sell, hold, build a lot in NZ/ AUST- I found the most simplified option for us in NZ was in our personal names, as we are residents of Australia for tax purposes.
Loans were all done through Pioneer Mortgages Auckland, my broker is Mary Obrien NZ MORTGAGE SOLUTIONS- her email is
[email protected]–My accountants are Shand Thompson in South Island Balclutha- accountants name is Gaye- they were recommended to me by some australians that have over 70 properties in NZ and they handle their portfolio. They have been very thorough, good to deal with, smart, adn up with property.
Bye- Goodluck- dont wait too long as properties are going up like Gold- we mainly buy Christchurch and Invercargill- South Island
hey guys ….. Garth is the guy for this ….. on another subject ….. just completed another Lease option down in Invercargill …… cashflowing at over $235 per week!!!!! Very very happy tenant buyers and winners all round…… may start another thread telling about the deal if any one is interested ….. oh BTW ….. we are based in Hamilton NZ … so you can do these remotely if ya set em up right!
Cheers
Shane … Kiwi!Looked as if we would sell our commercials from trust to our individual names in NZ but latest advise ( had heaps, often conflicting ). Appently we should retian the company trust arrangement in NZ and set up a similar stucture in OZ and have it as a beneficiary to the NZ trust.
Any comments or thoughts??
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