WHICH STRUCTURES

Viewing 6 posts - 1 through 6 (of 6 total)

Xenia
Member
@xenia
Join Date: 2002
Post Count: 1,231
May 13, 2005 - 5:47 am
Hi kiwi investors
just wanted to know how other people are buyng NZ properties? I have had all sorts of advice from setting up LLCs to setting up NZ-based discretionary trusts. Im confused!!!
Cheers
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
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shar30441
Member
@shar30441
Join Date: 2003
Post Count: 47
May 15, 2005 - 8:24 am
Hi Xenia
I also had a lot of trouble getting info on the best way to buy ppties in NZ.
I have now bought them in a NZ Family Trust, however, you have to be careful that you don’t control the TRust or the ATO will consider it as being an Australian Trust and therefore need to put in a tax return for the Trust in Aust. What I have done is set up a NZ Trustee Company to be the Trustee of the Trust with the directors and shareholders of the coy being my NZ solicitors. No-one seems to know for sure if this will satisfy the ATO as needs to be tested by them for sure. (I did speak to the ATO but they don’t even seem to know).
I wasn’t trying the avoid paying tax in Aust, but just wanted asset protection. However, I do cringe at having to pay accountants fees for tax returns here for a NZ Trust.
If only buying one or two ppties in NZ then I wouldn’t have bothered and just bought in our own names. AT least it is cheap to transfer the ppties to a Trust over there as there is no stamp duty etc.
Shar
ayen
Participant
@ayen
Join Date: 2005
Post Count: 17
May 16, 2005 - 11:31 am
Hi Shar,
I have considered a similar structure to the one you describe.
I realise it is easy to transfer the title from a personal name to a trust name but what about the mortgage? Would the trust have to take out a new mortgage and purchase the property from the individual? How difficult is it to get a mortgage in the name of a trust?
Andrew
Alistair Perry
Participant
@aperry
Join Date: 2004
Post Count: 891
May 17, 2005 - 2:46 am
Nigel Kibel, who posts on here, knows quite a bit about structures in NZ for Australian investors. You could do far worse than to speak with him.
Nigel Kibel
Participant
@nigel-kibel
Join Date: 2005
Post Count: 1,425
May 17, 2005 - 9:48 am
If you purchase a property in you own name in New Zealand and you sell the property you must pay capital gains tax. There is a tax agreemernt between our two countries. The only way to protect yourself is to establish the correct structure when purchasing. We have done a lot of research in this area. It is important to seek the correct advise before proceeding
Nigel Kibel
http://www.propertyknowhow.com.au
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masteraccountants
Member
@masteraccountants
Join Date: 2004
Post Count: 77
May 19, 2005 - 10:17 am
Hi,
I have made several postings to similar forums asking the same questions.
We are a firm of property specialist accountants and tax advisers in New Zealand, and provide low cost setup and low cost administration structures for overseas investors to buy New Zealand and US properties.
If you are interested, send me a private mail so I can email to you our material. We demystify the tax issues involved in investing in New Zealand property.
Christopher Raynal
Master Accountants Group Limited
PO Box 46018 Herne Bay
Auckland New Zealand
Ph +64 9 360 3259
Fax +64 9 360 2180
http://www.masteraccountants.co.nz