Yes, Indonesia. You read it right. I have posted this question before but since then SMSF property law has shone its light over more people and is consequently more widely viewed. So, the question in point form and variations of the structure considered.
Can my SMSF purchase the leasehold over a property in Indonesia that is not yet but soon will be a business, ie; a Resort property? The end result, owning(leasehold) the property and business.
Can it hold the land and the business sub-leases from the SMSF?
Can it hold the business only, therefore leasing the land from a 3rd party?
Thanks
A SMSF cannot purchase from related parties. But one exception is business real property. This is defined to include leasehold property – ie the land with the building as being part of hte land. The SMSF couldn't buy hte building from a related party unless it is attached to the land.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks terry,
So the SMSF could lease the land and have nothing to do with the buildings?
Want to get this sorted before I use my own money on the land.Sounds like a great project, best of luck
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
After 2 years of setting up organisational structures, dealing with various lawyers both in Australia and Indonesia, I am pleased to say our capacity building project in remote Indonesia is taking shape.
Our vision toward the finished result sees a boutique retreat that provides simple but elegant off the grid escapes for families and small groups.
Land has been sought on a spectacular strip of beach, contracts are ready to go and building permits are being drawn up.
In a nutshell our Incorporated Association is taking on a project in Indonesia where we are funding the construction of a boutique retreat. In this retreat we will endeavor to train local youth in various facets of the tourism industry. As tourism is quickly growing in East Indonesia our goal is to help preserve the local community while training to operate tourism business in a sustainable and viable manner, unlike what has happened in Bali.
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