Forum Replies Created
quote:
you say nz has no capital gains tax !will the aussie government tax you when you bring the money back into the country thoe ? ie will they tax you as money earnt overseas ?
the short answer is yes, although you should get a credit for any tax already paid in NZ.
regards,
Rod.
I agree with Richmond,
I think Melb and Syd will certainly slow (they probably have already). Some sectors (the inner city hig rise apartments) will certainly drop. QLD still seems to have a bit left in it but a change of sentiment (which seems to be what the general media is pushing) will probably see that slow as well. The regional areas will probably slow (and possibly retreat slightly) as well. If all of the metropolitan areas slow then they must as well. Much of the regions have been playing catchup the last couple of years.
Sharemarket should be a good place to be, especially with the change in sentiment unless there’s some major international incident to knodk it again.
Rod.
quote:
Such borrowers have lent 70% LVR, but I know of people who have secured 80% LVR. It all depends on the risk profile of the applicant.Hi Steve, do we take it from this that the lenders didn’t like your risk profile and would only give you 70%?
regards,
Rod.
Mel’s correct.
If you just renovate straight away anything which you discard has no “claimable” value. If you have had a depreciation schedule done then you can “write off” the value of the item which you are replacing.
Rod.
No Joff, I don’t think you’ve done anything wrong.
That is 13.52% yield.
Rod.
I’m comparing rentmaster and property manager pro at the moment. Both seen very good, personally at the moment I’m leaning towards purchasing rentmaster.
rentmaster (trial) can be downloaded from http://www.rentmaster.co.nz and property manager pro can be downloaded from http://www.apimagazine.com.au/pages/magazine/software.html
Both these trial versions are fully operational (for 45-60 days).
regards,
Rod.
hi Raymondo,
I haven’t done this some I’m only guessing. I’m also assuming the NZ IP is owned in your own name as company/trust ownership would complicate the answer.
I would think that as the property is +ve you would pay tax on the income in NZ. You would then declare this income in Australia and receive a tax credit for the tax already paid in NZ. (So you’re not really being taxed twice). The interest cost of the funds (I’ve assumed 100% Australian borrowings) would be claimed in Australia.
I think you need to talk to a good accountant.
regards,
Rod.
quote:
If the trust makes income who will receive the distribution, if not distributed the trust is normally taxed at high marginal rates (this is the case in Aust & we tend to be in line with NZ )In NZ income accumulated and retained in the trust is taxed at 33%.
quote:
Your final problem is when you bring it home it might be subject to 48.50% rather than CGT at 24.5.I don’t know the answer to this. You still get the 50% discount on CG distributions from an Australian trust, I don’t know if foreign sourced Capital Gains are treated differently.
quote:
If you are serious you need to spend the $$$ and get advice that will help you in your OWN situation.Definitely.
regards,
Rod.
Hi guys,
As long as the funds are retained in the NZ trust you should have access to the NZ benefits that melbear has mentioned. When the money is ddistributed to non NZ residents that’s when it gets trickier.
The 2 main operational choices (as I understand them) with the NZ trust are:
1. The trust retains all income (no distribution) to beneficiaries. The trust then pays NZ company tax on the income (after all the usual deductions for interest, depreciation etc.). There should be no Australian tax implications in this case as there is no distribution to Australian taxpayers.
2. The trust (after deductions) makes a distribution to beneficiaries. If these beneficiaries are non NZ residents then they will pay a NZ withholding tax (I think it’s 15%). This income should then be declared on your Australian tax return and is taxable but you should receive a credit for the 15% already paid in NZ. If any part of the distribution is related to Capital Gains then this will be taxed in Australia.
westan, I think that if you use an Australian trust in NZ the trustee will have to pay the NZ withholding tax. The trustee would then have to declare this income in Australia and either pay Aussie tax or distribute it to benficiaries (who are then taxable). The trustee should get the credit for the NZ tx already paid. One of the advantages with a NZ trust is that you have the 2 choices I mentioned above, ie: retain the income in NZ or distribute it. With an Aussie trust you can’t leave the income in NZ, it needs to be declared in Oz.
Another issue with an using an Australian trust in NZ is if you have a Aussie Corporate Trustee NZ banks may not want to lend to a non-NZ entity.
Hope this makes sense, just remember I’m not a lawyer/accountant etc. So please check this info for yourselves before making any decisions.
regards,
Rod.
Anto,
This subject has been broached a few times, do a search on NZ.
Also it has been discussed quite a bit on the forums at http://www.propertalk.co.nz there’s also a few articles on trusts at that site from NZ lawyers.
The short answer however is that it’s relatively straight forward. Beneficiary income will be taxed in NZ. This income will have to be declared in Australia but you get a credit for the tax already paid in NZ.
regards,
Rod.
westan,
you must have upset him with all the Santa references.
[
]Rod.
I’ve been wondering the same thing.
It’s certainly been a “long time no see” for AD and the B.
Rod.
Hi sue,
the LIM isn’t as complete as a Section 32. The LIM only contains information that the council has on file. A Section 32 is put together by the vendor (or their solicitor) and should contain everything relevant to the property (body corporate info etc.).
I’ve got a couple of different LIMs here (as PDFs) let me know if you’d like to have a look at one to see what they contain.
regards,
Rod.
Better ask westan. That’s his part of the world.
Maybe the vendors in Birchip have seen all the sales in Nhill and want a piece of the action. (Sorry Leigh [
])Rod.
Hi Sooshie & Sue,
Yes Warranwood is near Warrandyte, we’re between South Warrandyte (hence the “Warran”) and North Ringwood (hence the “wood”)
Paddocks and bush to the north, ‘burbs to the south.
Rod.
Hi SIS
Check out http://whirlpool.net.au
they’ve got comparisons of different isp’s and also forums with plenty of opinions.
Rod.
Mel,
You misunderstood me. I agree that if I was purchasing a property with an already completed reno, then I would just get a QS to check it out. I wouldn’t bother with the vendor’s receipts either. The QS will probably want to know the date of the renovation.
My comment was actually related to Simon’s post which I took as implying you were doing a renovation yourself using your own labour. Hence you would have receipts for materials but not for labour.
Rod.
quote:
Sometimes if you do the reno it is better to get a QS in than use the receipts – the reason is receipts don’t show your labour component whereas their estimate for the value of the new kitchen wil include that.I’d check this with an accountant and QS, I think that if there are receipts then that is what should be used. I’m not sure that your own time is “claimable”.
Rod.
Warranwood, VIC. Suburb about 30K East of the CBD.
I agree entirely. I’ve had no trouble getting RE agents to supply info. But I do find the printouts from QV online interesting.
I’ve got one here that shows a property that was sold for
$42K in 1987
$48K in 1992
$36K in 1996.It’s currently listed at $69K, rating valuation is $55K.
Rod.
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