Can you set up an Australian Trust to buy overseas investment property

Viewing 9 posts - 1 through 9 (of 9 total)

Bricks and Mortar
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July 23, 2012 - 1:01 am
Looking to form a trust with multiple investors to purchase property overseas. Is this possible?
Terryw
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July 23, 2012 - 2:57 am
yes
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Bricks and Mortar
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July 23, 2012 - 3:13 am
Thanks Terry – I was thinking that a unit trust would be the best option for unrelated investors. Also, if the property was for investment only (not used by the investors at all), can SMSFs buy units in the trust?
Terryw
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July 23, 2012 - 3:16 am
You have to look into the laws of the country you are buying in. It is unlikely that a trust will be recognised overseas so it will be the legal owner which may be the trustee. But this will depend if a foreign entity can be registered in that country.
A SMSF could buy units in a unit trust under certain circumstances. But if the property was being used as security it couldn't.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Bricks and Mortar
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July 23, 2012 - 7:29 am
OK – thanks Terry – that's helpful
I have an LLC in the USA and own two properties there. I was wondering how it might work if I wanted to allow other investors in, to raise more capital for future aquisitions.
Also, I have a keen interest in Bali – the laws are very different there, so it will need a completely different approach.
Terryw
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July 23, 2012 - 10:15 am
If you are marketing to other investors you have to be careful and make sure you meet the requirements for licensing under the Corporations Act if necessary.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Ziv Nakajima-Magen
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July 29, 2012 - 3:42 am
Bricks and Mortar wrote:
…have a keen interest in Bali – the laws are very different there, so it will need a completely different approach…
I know many people have been spruiking Indonesia in recent years, but I heard a great many horror stories (property stolen by corrupt officials/local "law enforcement" entities, investors visas cancelled and blacklisted, so they can't enter the country to do anything about anything, etc etc)…bottom line, if you're well connected you're probably alright, but otherwise I'd watch my step there.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
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Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Terryw
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July 29, 2012 - 1:03 pm
hi ziv
in indonesia
this is actually what happened to a mate of mine. his propertty was stolen by an ex girlfriemd and he has been trying for years to get it back he has a supreme court order that says the property is his but still having trouble getting it tranfered to his name after 3 Years
there was a mistress of the local police chief renting it too and she stopped paying the rent so all sorts of problems
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Freckle
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August 16, 2012 - 12:54 am
Steve Mc has a series of videos explaining his pitch to raise $20m – $75m using trusts and REITs to invest in the US commercial market.
I don't agree with his FX or economic assumptions but this will give you a fairly good starting point on how to go about it.
Intro
http://www.youtube.com/watch?v=-7cFLUx6Fss
Pt 1 The Opportunity
http://www.youtube.com/watch?v=36rqgEqzW-M&feature=relmfu
Pt 2 How Does it Work
http://www.youtube.com/watch?v=VjAw9O8nzSs&feature=relmfu
pt 3 Why USA Property
http://www.youtube.com/watch?v=vtD_Vu8sLWQ&feature=relmfu
pt 4 Why Commercial Property
http://www.youtube.com/watch?v=O0eKOQS3Vv4&feature=relmfu
pt 5 Significant Risk Benefits
http://www.youtube.com/watch?v=bk23o3eUqO0&feature=relmfu
pt 6 Fees
http://www.youtube.com/watch?v=7RAqtjlbmzA&feature=relmfu
pt 7 Possible Returns
http://www.youtube.com/watch?v=QwI4jUjsoMg&feature=relmfu
pt 8 How to Invest
http://www.youtube.com/watch?v=P3tX3g-zAD4&feature=relmfu
pt 9 Invitation to Invest