Hi, all.
Here’s a question (I checked, and didn’t see it anywhere else in this forum)… Under what circumstances would it be better to use legal structures to do all this stuff (buying & letting property, wraps, lease-options, etc)?
Are there any dis/advantages to acquiring property through a company? Or any other legal structures (or combination of structures, as I’ve seen mentioned on some US sites) nicely suited to property investing?
And, if you’ve got time for another train of thought (here comes the “second-parter”), can foreigners do all this stuff in Australia through a) an Australian company, and/or b) an overseas company? I think NZ only allows NZ citizens to buy property. How about here?
Answers are great, and links work fine too.
Thanks in advance!
– Info(“some of by best friends are foreigners with company ownership fetishes”)Squid
Hi Infosquid.
In answer to the first part: I been advised that a company is probably the worst structure to use for purchasing capital growth assets. Seems that a trust of some kind is better. Take a look at http://www.gatherumgoss.com or http://www.chrisbatten.com.au.
Second part: I have no accurate info, but I think that only Aust residents or Aust registered companies can own R/E in Aust. Anyone else?Terry
FinanceThe links saskatoon gave were the two I would have given. Only other would be Kevin Munro’s at http://www.taxlegal.com.au
Check Sooshie’s thread as another source of great links – https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=195
David.
HI InfoSquid
I to have looked into purchasing while being a non resident of Australia. As far as my research informs me the following people can purchase real estate in Australia…..Australian residents, New Zealand citerzens, Australian citerzens who are non citerzens and people resident with Australian residency. Other people wishing to purchase property in Australia are considered foriengers and can only purchase buildings and not land so it is appartments for them.
I got this information from a web site…I cant remember which one. I will post it when I can track it down.
I hope this helps
Tamara
My information is that all Australian residents and citizens only can buy existing properties.
In other words if you do not live in Australia or are not an expat, you can only buy a brand new property, be it house or apartment. You cannot buy anything “second hand”. You can buy land, but must build on it in a short period of time (not sure of the time frame). All applications must go through the Foreign Investment Review Board (FIRB), so they are they best people to check with for specific information.
NZ residents used to be able to just buy property here, but I believe the rules are changing to treat them the same as foreigners.
LucyMaybe I should’ve set them up as separate threads. I’m getting confused.
Topic A (companies and/or other structures).
Let’s take the example of someone wanting to generate substantial cashflow from multiple “wrapped” and/or “lease-optioned” properties. Would you put together 5 deals in your own name? Or are you better off creating a company that does it? Or maybe a trust? Or is there some sort of multiple-company structure that works? Or….? Obviously one needs get legal and tax advice for their own situation, but what structure are most people here using?Topic B (foreigners in Oz)
I’m actually trying to find out if foreign companies can buy real estate or do these kinds of deals. I had assumed foreign citizens would have limitations (correct me if I’m wrong), but that just makes it necessary for foreigners to either own local companies and/or buy through a foreign company, right? Or are there roadblocks to that plan? Anyone know?Thanks.
InfoSquid
The link to the sight i got my information from is
In this site you should be able to find the information regarding foreign companies if not they the Foreign Investment Review Board should be able to answer your question.
Tamara
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