Family Trust for NZ purchase

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asalws
Participant
@asalws
Join Date: 2002
Post Count: 5
February 23, 2010 - 8:59 am
Hi everyone,
I have a question about family trusts. I'm an Australian who plans on purchasing in NZ.
I've been in contact with a lender who says they will lend to Australians but they said the family trust must be formed in NZ. However, on the other hand I've also been in contact with a NZ solicitor who says the trust can be formed in Australia and they would just need a copy of the trust deeds.
Who do I believe? Is there a difference between a NZ and AUS family trust?
Also, this solicitor says it is extremly rare for an overseas purchaser to purchase using a family trust, I would have thought it would be quite common for investors. Any thoughts on this?
Thanks
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 23, 2010 - 11:39 am
Yes there is a difference between the 2. Different countries have different laws. I would be looking at using an NZ trust.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Playa Chicken
Member
@playa-chicken
Join Date: 2004
Post Count: 128
February 27, 2010 - 10:25 pm
Yes, Terryw is right, you'll need to set up the NZ trust (not necessarily a family trust) also as per the lender's requirements.
Here are a couple of companies where you can get help setting up your NZ structures.
Company Solutions: http://www.company-solutions.co.nz/

and
Storey & Associates who are excellent property investor focused accountants:
234 Broadway Ave
Palmerston North, NZ
Phone: +64-6-355 4647
I'm in NZ and happy to help.
Cheers,
Vicky