Hi all,
Not sure if this is the appropriate place to post this but here goes.
im about to purchase 4 +cf in NZ in a joint venture with my brother. the situation is, my brother wants 80% ownership of each properties (he’s supplying all the funds) where i get 20%.1. how do i go about setting up the legal structures where ownership is 80% and 20%
2. I also plan to sell off my 20% share to my brother in the next couple of years. what is the tax/legal implication involved?
3. can anyone recommend a good solicitor in NZ?
Thanks in advance
Hey jlee
Mini has mentioned she has a good solicitor in NZ. If you look at some recent posts – I think it’s under ‘investing in nz’.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=4869
As for the split – I would think about buying the houses in a unit trust or similar structure, especially if you will be selling out in future. This way, the name on title, and loans etc. do not have to be changed, and can save a lot of hassle. Speak to your accountant tho.
Cheers
MelHi jiee-23[
]
1/ Whilst I am not compleatly sure about the legal side of things this is similar to cases where couples have a large differance in incomes when purchasing negative geared property.
In these cases the majority of tax benifits are claimed by the highest income earner.
This is acheived by setting the Title and loan structure up so that they are “tennants in common” with up to a 99%/1% split rather than “joint tennants” at 50%/50% split.
2/ It is normally impossible to sell off 20% of a property under a normal title as the whole of the property has to be sold,however there are ways it can be done thru a trust or company. Expert opinion would have to be sought to clarify this.
Whilst I have not been able to answer your questions I hope that the advice given can be used as a guide when seeking expert help from the appropriate people.
Regards
Bryce Inglis
[email protected]
http://www.ipal.com.auThanks for the info guys.
I think i will have to speak to my accountant for more details.
Does anyone know a good solicitor in sydney that deals with NZ properties?
My contact detail is [email protected]
I don’t know anything about NZ, but what about just buying them in his name only from teh start. if he is your brother, you can probably trust him, so just get them in his name, with the loan in his name and you will be lending him 20% and taking a 20% share of the property-all behind the scenes. Saves on legal costs, stamp duty, capital gains tax etc when you sell to him. Also keeps you debt free, increasing your servicebaility.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
