All Topics / Help Needed! / Australian Living overseas looking to invest in Oz

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  • Profile photo of JolleyJolley
    Member
    @jolley
    Join Date: 2009
    Post Count: 2

    I’m an Australian Citzern living in Europe and with the devaluation of the

    A$ and the market of houses dropping (maybe) Im looking at investing in a couple of property investment in the Melbourne CBD area (was originally from

    Melbourne), ideally in the new Docklands areas. Initial investment property

    would be around the A$400K-500K, with the hope of making a second purchase in 2010/11.

     

    I have spoken to 2 mates who already have beneficiary trust for property

    and share investing and they recommend this the best way to go.  Ideally I

    do not want to negative gear these properties as I have no other income to

    offset it at the moment.

     

    I have not asked my friend for details as guess how they set things up

    would be for them personal and do not want to go to deep. So what should I

    be careful of as an Australian Citizen with non residence status? As Im

    looking at being over here for a while yet the idea is to slowly build up

    an asset worth in Australia for my children should they go back or we

    retire down there (which will no be for another 15 years or so).

     

    I will be organizing a visit to an accountant and legal consultant on my

    next trip to Oz, hopefully mid year but wanted to do some researching

    first, also need to find an accountant and legal firm with a good

    reference.

     

    I have good connection here with an international bank so I will also check

    with them if and how they can help me but already know that they will not

    give a mortgage for property outside the country I live in but will give me

    a reference to give to a local Australian bank.

     

    So the Questions are really about how to best proceed with or with out the trust and does anyone have good links about market value and such in Melbourne area. 

     

    Another point would be a question about the investment places Im looking at are mainly 2 bedroom flats in tall building most have swimming pool and gym so no doubt there will be corporate cost what else do I need to watch for? Im looking at these as I live overseas and have no real family contact to look after maintenance of a standalone house and such, I thought these would be worth looking into.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You will need to check out the tax issues such as:
    – are you a resident for tax purposes
    – implications of a non resident trustee of a trust.

    The ATO site has some basic info,

    I don't think there are any other specific things relating to you being overseas.

    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

    Profile photo of ErikHErikH
    Member
    @erikh
    Join Date: 2007
    Post Count: 118

    Jolley, as an overseas investor if you want to use a trust structure with a company as trustee you do need to appoint an australian resident as director of the company.

    Profile photo of JolleyJolley
    Member
    @jolley
    Join Date: 2009
    Post Count: 2

    Thanks Terryw and Erik,

    I am a non resident for tax purpose in Australia and would like to stay that way, if possible.

    Any funds which go into the trust to invest will be long term and any profit made by the trust will be placed back into the trust investment accounts.  The idea will be to build up an Australian trust over the next 20 years or so for my children wealth so there will be very little if any pay outs.

    The Trustee was going to be only me.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    One thing you need to consider then is that if a trust doesn't distribute the income then it is taxed at tax marginal rate. So each year you will need to find someone to distribute to. if you are a non-resident that the tax will be starting at 30% and up.

    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

Viewing 5 posts - 1 through 5 (of 5 total)

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