I totally agree with MiniMogul on that, that is another alternative too. No stamp duty, no problem transferring it over at a later date.

But if you’re certain you’re going to gather lots in a few months to yrs time, then i suppose no harm setting it up now and just add to it. saves you some time.

if you’re new to NZ, then getting a feel of purchasing it first might not be a bad idea too, before committing to a trust set up.

Perhaps u might want to weight it up before deciding on where to go. Either way it’s feasible for NZ

cheers,
kev

There’s no Such thing as No Can’t Do!!!!!

Hi all,

There are lenders BASED here in Australia and NZ, who will lend to non NZ residents for the purchase of New Zealand Property,
and the New Zealand property is the security over the loan,
Regards
Steven
Mortgage Broker

Hi Steven, would you mind giving some names on who those lenders are ? thanks

Kev

Dear Geo,

u can have urself as a trustee of course, but that doesn’t protect you if you get sued. I generally prefer to set up a company that i own majority shareholder that then manages the trust. It gives me extra protection and also it just allows the trust to pay the trustee sorta consultation fees i suppose which will be taxed at corporate rate of 30% and not the personal income bracket i’m in when i do start working next year.

Now back to your question,

I suppose for NZ, you could have ur Australian trust that owns the NZ trust, or if you think you’re going to stick to Nz market for a while before you get back into the Australian market, try having a NZ trust first. I think they work different being in differnt country ( as in taxation law and etc ) but generally the same principles applies.

An alternative is to look at what IBuyCashFlow post, to get a limited liability company in NZ and ur aussie trust owning the shares. Don’t know much about that but i suppose it’s worth a look at.

cheers

Kevin

Hi geo,

a trust is basically something that is there for the benefic of your beneficiaries, trustee being the entity that manage the investment for the trust. It can be an individual or a company where u control the majority of the shares.

Now the appointor is the one that hires or fires the trustee. Basically the Appointor is the Boss. Which i believe is the position u want to be in.

now Beneficiaries, there are 3 types.

B1 – you and ur immediate family members (mum, dad, bro, sis)

B2- is the immediate families of your B1

B3 – is your any trust setup or anybody that’s related by marriage or blood of your B2.

Now, if you have u as both the Trustee, the sole Beneficiary and also the Appointor, that creates a problem in terms of trust deed. If you have ur name on everything, then it defeats the purpose of the trust, as you would then own the property (theoretically speaking )

So i suggest u have ur mum/dad/bro or whoever to be in the beneficiary list too but that doesn’t means u have to give them any money or income. they’re there in name for u to help decrease ur tax that the trust would have to pay on any of ur incomes from the trust investment.

Anyway, i think that answers ur immediate questions. if you have more, please don’t hesitate to contact me [email protected]

I’m in Melbourne too.

Oh btw, the accountant, Dale gatherum Goss.. i think he might be the one you mentioned..

he’s good. I’m going to get him to set up my trust next year.

Good luck with ur NZ property purchase.

Cheers,

Kev

Dear Glenetti,

Hmmm your loan structure and wages stucture sounds very much like the country i’m from < Malaysia > The rental there’s Monthly so is the Salary.. however, there isn’t any fixed time, even when you’re off work, u could essentially be working OT UNpaid.. such is the working conditions in most asian coutries, where u work work work and no relaxation at all..

neway, the income tax is 30% flat, Singapore is probably lower 20-25% ? anyway.. GST in M’sia was 5% but only on Foods but i think has been abolished 2 yrs back.. haven’t been back to keep updated with the economic situation there for some time.

Anyway… that’s just me wanting to say something hehe

Kev

my, with regards to FHOG, if you have a few IPs already and do not live in either of them, hence IPs not PPOR, do u still qualify for 1st home owner grant?

i was under the impression that ur first home is ok for receiving the FHOG if it’s ur PPOR but if you have ur first home as an IP and subsequently bought ur PPOR, that’s not considered a first home anymore as you would have owned a home already?

Could anyone confirm that?

thanks,

Kev

Dear Greg,

Does ur friend has Medicare card? if she has, most likely she will definitely pass as an australian resident, citizen even maybe? As far as i know, if you have both driving licence and medicare card, you’re as much australian as any others (PR or Citizenship wise) NOt sure if Driving LIcence applies to senior citizen but i would assume so as i know once someone became a PR of Australia, he/she will have to have a valid australian licence as a so called identity card to identify them.

Back in Malaysia, we have this Identity Card which is separated from the Driving LIcence and has greater power compared to the driving licence, but here in Australia, there’s no Identity card as the driving licence itself is one, together with medicare card.

Hmm i think i’m going in circles, but hopefully u could follow what i’ve been saying..

Cheers,

Kev

oh, my land has increased in AUD 30,000 in value since last Sep when i bought it. it’s a great learning curve doing that deal and all.

and i had variable finance on it so that it allows me to make extra repayments to shorten the loan and to reduce the interest repayments i have to pay in the long run. that itself is a great learning curve to me and reaffirms the statement, Never Say never, there’s always an answer and a way out.

Kev

Dear GEo,

if you’re going to settle the properties, then why not divide the profit equally as both of you have deposited equal amount and just cash out? after all, once the investment has been settled, there’s no more partnership on those properties isn’t it? but that depends also on the contracts both of you may came up with prior. tell us how it goes.

Regards,

Kev

George, would you mind sharing with me the details of your solicitor? i’m looking for one too, the last one i used wasn’t very good, not gonna use him anywmore. it’s vital to have a good solicitor in ur team.

REgards,
Kev