[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 6, 2004 - 3:45 pm

I totally agree with MiniMogul on that, that is another alternative too. No stamp duty, no problem transferring it over at a later date.

But if you’re certain you’re going to gather lots in a few months to yrs time, then i suppose no harm setting it up now and just add to it. saves you some time.

if you’re new to NZ, then getting a feel of purchasing it first might not be a bad idea too, before committing to a trust set up.

Perhaps u might want to weight it up before deciding on where to go. Either way it’s feasible for NZ

cheers,
kev

There’s no Such thing as No Can’t Do!!!!!

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 6, 2004 - 2:18 pm

hi Muzz,

It depends on which market you’re targetting as your tenant. If your market involves people who doesn’t necessarily going to settle in for a long time, eg international students or working young adults, then it may interest them that everything’s ready they just have to move themselves in.

But then again, i suppose you could always test out the rental market by giving a choice perhaps to have it furnished or not and let them compare the prices themselves?

some may think that 30 extra per week may save them the troubles and hence would be happy to pay a more premium rent

Cheers,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 6, 2004 - 1:56 pm

Hi all,

There are lenders BASED here in Australia and NZ, who will lend to non NZ residents for the purchase of New Zealand Property,
and the New Zealand property is the security over the loan,
Regards
Steven
Mortgage Broker

Hi Steven, would you mind giving some names on who those lenders are ? thanks

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 6, 2004 - 1:46 pm

oh, forgot to answer the question of how long it would take.. i’m not sure myself as i haven’t set up any trust yet.. waiting for next year when i’m a resident and hence would be considered as an australian trust and not a foreign trust if i were to set up one now. but generally i don’t think it will take that long, the accountant should be able to handle is provided that they’re not fully booked out.

Which accountant are you thinking of visiting Geo?

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 6, 2004 - 1:44 pm

Dear Geo,

u can have urself as a trustee of course, but that doesn’t protect you if you get sued. I generally prefer to set up a company that i own majority shareholder that then manages the trust. It gives me extra protection and also it just allows the trust to pay the trustee sorta consultation fees i suppose which will be taxed at corporate rate of 30% and not the personal income bracket i’m in when i do start working next year.

Now back to your question,

I suppose for NZ, you could have ur Australian trust that owns the NZ trust, or if you think you’re going to stick to Nz market for a while before you get back into the Australian market, try having a NZ trust first. I think they work different being in differnt country ( as in taxation law and etc ) but generally the same principles applies.

An alternative is to look at what IBuyCashFlow post, to get a limited liability company in NZ and ur aussie trust owning the shares. Don’t know much about that but i suppose it’s worth a look at.

cheers

Kevin

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 5, 2004 - 3:29 pm

House Hunter is right, the main point is you have to be the appointor who controls what happens in the trust..

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 5, 2004 - 12:54 pm

Hi geo,

a trust is basically something that is there for the benefic of your beneficiaries, trustee being the entity that manage the investment for the trust. It can be an individual or a company where u control the majority of the shares.

Now the appointor is the one that hires or fires the trustee. Basically the Appointor is the Boss. Which i believe is the position u want to be in.

now Beneficiaries, there are 3 types.

B1 – you and ur immediate family members (mum, dad, bro, sis)

B2- is the immediate families of your B1

B3 – is your any trust setup or anybody that’s related by marriage or blood of your B2.

Now, if you have u as both the Trustee, the sole Beneficiary and also the Appointor, that creates a problem in terms of trust deed. If you have ur name on everything, then it defeats the purpose of the trust, as you would then own the property (theoretically speaking )

So i suggest u have ur mum/dad/bro or whoever to be in the beneficiary list too but that doesn’t means u have to give them any money or income. they’re there in name for u to help decrease ur tax that the trust would have to pay on any of ur incomes from the trust investment.

Anyway, i think that answers ur immediate questions. if you have more, please don’t hesitate to contact me [email protected]

I’m in Melbourne too.

Oh btw, the accountant, Dale gatherum Goss.. i think he might be the one you mentioned..

he’s good. I’m going to get him to set up my trust next year.

Good luck with ur NZ property purchase.

Cheers,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

May 1, 2004 - 4:53 pm

hi, i went with Bankwest who offers me 70% LVR as i’m considered an overseas borrower ( non-resident residing in Aus who buys property in AUs )

If he’s a resident of Australia, he doesn’t have to go through FIRB and hence would then be able to satisfy more banks compared to me, as most banks dont’ like the terms set out by FIRB as they deem them risky except a few like BAnkwest for eg.

Also if he’s not a resident he wouldn’t be allowed to buy 2nd hand properties thru auctions ( well he could but he has to sell if off if he can’t continue staying in Aus ASAP within 3 months of leaving Aus, regardless of any profits or loss made ) so his residecy status definitely plays a huge role in the type of properties he’s able to purchase.

Anyway… i’m sure it would be possible. all they require are standard documents like employment and all (eg his current OS employment records )

i think if you were to get in touch with some of the mortage brokers here, i’m sure they’ll be able to assist more.

cheers,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:56 am

Dear Glenetti,

Hmmm your loan structure and wages stucture sounds very much like the country i’m from < Malaysia > The rental there’s Monthly so is the Salary.. however, there isn’t any fixed time, even when you’re off work, u could essentially be working OT UNpaid.. such is the working conditions in most asian coutries, where u work work work and no relaxation at all..

neway, the income tax is 30% flat, Singapore is probably lower 20-25% ? anyway.. GST in M’sia was 5% but only on Foods but i think has been abolished 2 yrs back.. haven’t been back to keep updated with the economic situation there for some time.

Anyway… that’s just me wanting to say something hehe

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:49 am

SIS,

i’m not sure what ur background is and how ur circumstances is like. but i think sometimes some changes and sacrifice will be paid back greater.

i am facing the dilemma of where to work next year as i dont’ want to leave my partner in Melbourne. but it has to be done if it has to be. sometimes u just have to think positive and give it a go. After all, Sydney and Brissie ain’t that far away. That’s how i console myself about having to move out of Melbourne next year to work possibly in Adelaide or who knows Perth.

Anyway… I’m sure you’ll be able to decide what to do, like what Kay Henry said, if you are able to obtain 12 IPs by 21 ( my admiration and salut to u ) i’m sure u’ll be wise enuf to know what u have to do. Follow your Heart.

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:35 am

my, with regards to FHOG, if you have a few IPs already and do not live in either of them, hence IPs not PPOR, do u still qualify for 1st home owner grant?

i was under the impression that ur first home is ok for receiving the FHOG if it’s ur PPOR but if you have ur first home as an IP and subsequently bought ur PPOR, that’s not considered a first home anymore as you would have owned a home already?

Could anyone confirm that?

thanks,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:32 am

Dear Greg,

oh by the way,

hmm i suppose you could try a Hybrid Trust where u could determine which that you and ur wife holds 80% of the trust and her 20% if you want a 80:20 ratio partnership and from ur 80% it became another sub trust (ur family trust) and her 20% will becomes her own family trust.

hope that make sense?

else if it’s just 3 properties and there’s no intention of expanding, u could always have some contracts written up highlighting the 80:20 profit breakdown ?

Do ask an accountant / lawyer on the legalities and all.. don’t quote me. mine was merely a suggestion, i’m not sure of it myself

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:30 am

Dear Greg,

Does ur friend has Medicare card? if she has, most likely she will definitely pass as an australian resident, citizen even maybe? As far as i know, if you have both driving licence and medicare card, you’re as much australian as any others (PR or Citizenship wise) NOt sure if Driving LIcence applies to senior citizen but i would assume so as i know once someone became a PR of Australia, he/she will have to have a valid australian licence as a so called identity card to identify them.

Back in Malaysia, we have this Identity Card which is separated from the Driving LIcence and has greater power compared to the driving licence, but here in Australia, there’s no Identity card as the driving licence itself is one, together with medicare card.

Hmm i think i’m going in circles, but hopefully u could follow what i’ve been saying..

Cheers,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:13 am

Elves, if you’re planning to invest in lots of properties, trust may be the way to do it. If your accountant isn’t happy with that, maybe it’s time to find a new one.

But if it’s just to get 2-3 IP and that’s it, then it’s really not worth having a trust set up. It’s more for the massive IP accumulators so to speak.

Cheers,
Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:08 am

oh, my land has increased in AUD 30,000 in value since last Sep when i bought it. it’s a great learning curve doing that deal and all.

and i had variable finance on it so that it allows me to make extra repayments to shorten the loan and to reduce the interest repayments i have to pay in the long run. that itself is a great learning curve to me and reaffirms the statement, Never Say never, there’s always an answer and a way out.

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 28, 2004 - 10:05 am

well i’m in UNi too.. First of all, you’re Young.. TIme is your GReatest Asset.

It’s good that you’ve started thinking about ur future young. what i did while still in uni was to join partner-ship with dad to purchase a land (soon to build end of this year ) to increase my equity so that when i start work next year, i have a good credit repayment records and something to spearhead my strategies and plan with. Guess i’m fortunate to have such great dad.

Apart from that, read lots of books, listen and SAVE SAVE SAVE.. learn from others and do not take the pessimistic opinion of my other unimates seriously. i hear them but it just makes me strive harded to prove them wrong that i can’t retire at 30.

Also to get into that income earning group, i make sure i study hard n pass my course. can’t wait to start work next year !! I guess just plan how u wanna do it and lay the bricks/path

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 24, 2004 - 1:48 pm

Dear GEo,

if you’re going to settle the properties, then why not divide the profit equally as both of you have deposited equal amount and just cash out? after all, once the investment has been settled, there’s no more partnership on those properties isn’t it? but that depends also on the contracts both of you may came up with prior. tell us how it goes.

Regards,

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 24, 2004 - 1:44 pm

oh i’m in Melbourne, VIc by the way.

Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

April 24, 2004 - 1:43 pm

George, would you mind sharing with me the details of your solicitor? i’m looking for one too, the last one i used wasn’t very good, not gonna use him anywmore. it’s vital to have a good solicitor in ur team.

REgards,
Kev

[VaslavMember@vaslavJoin Date: 2003Post Count: 86]

December 5, 2003 - 1:44 pm

those who don’t think they could do wrapping, then don’t do it. but others who are comfortable doing it, Very well Do it.. it all depends on personality and ur own investing strategies. Nobody does it like everyone elses. Success comes from doing things differently ( steve’s popular trade statement )

Kev