Family Trust for NZ purchase

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

Yes there is a difference between the 2. Different countries have different laws. I would be looking at using an NZ trust.

Terryw
Finance Broker
Solicitor

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

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