We intend to move to Australia within about 18 to 70 months.
I have started educating myself on the Australian market/terminology etc and have read quite a few threads in this forum.
I would appreaciate some brainstorming on my situation.
I am from South Africa.
In South Africa (RSA) it makes sense to make use of a trust structure for long term buy and hold strategies. So my current thoughts are to set up a trust structure now to start investing before I come over. I have a couple of questions:
1. What would be an advisable structure and why?
2. Do I understand correctly that "losses" will accumulate in the trust structure and can be deducted once it starts making a profit?
3. As a foreigner I would need to have at least a 30% deposit. And with the current new property deals on offer top foreigners, it will seriously deplete my cash reserves.
4. How would I know that the asking price of a new development is market related?
5. If my understanding is correct, I will then still qualify for my FHOG when I eventually move to Australia.
6. Is it perhaps possible to team up with current Australian residents (old friends from RSA), in a trust structure or not, to get around this 30% deposit requirement?
7. And what is the meaning of "Trusts must vest within 80 years?"Regards
Hi Oryx
Will answer the other questions later in the day but just on the finance front you would be able to obtain 80% lvr as a Foreign Resident with certain lenders.
Richard Taylor | Australia's leading private lender
Hi
1. Probably a discretionary trust for investments due to the tax benefits and asset protection. But, there are lots of tax consequences if you are a non resident for tax purposes – so get some advice.
2. Yes. Losses cannot be used to offset non trust income.
3. Not sure, you maybe able to get 80% depending on your situation.
4. You will need to do research and then maybe order your own valuation or rely on the lender's valuation
5. If you invest in a trust, or even in your own name and later become a resident I think you should qualify for the FHOG – if it still exists
6. Yes. You could set up a trust with others and invest that way.
7. Vesting means the trust must end. All trust assets will need to be distributed to beneficiaries – there is a law against perpetuities.
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 all. I will pursue my investigations and post further questions as it arise
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