(just posted this in the “Help Needed” post but saw this post category and thought it was more appropriate – sorry
new to discussion forums)Hi all.
I’m new to propertyinvesting.com. But excited to be making my 2nd post!
As the subject suggets I’m interested in inquiring about entitlements/laws governing international purchases of property with an Australian based entity/trust?
I’ve recently established a family trust – because my accountant told me it was a good thing to do
As I’m recently discovering, through heaps of reading (ala Trust Magic), that a trust is a tax effective vechile for attaining property.My wife and I recently moved to Europe (work/travel before we commit to kids
) – fortunately have an EU passport also which was granted to me via my Mother’s orgin).I’ve recently been exploring the possibility of purchasing property here in Europe.
My two key questions are as follows:
1. Has anyone had any experience in attaining property overseas in Europe from an Australian based Entity. If so/not what were the dynamics/logistics/restrictions, etc of the entities/structures involved?
2. Has anyone seen/heard or better yet, successfully achieved, a Vendor Finance / WRAP deal in European property? If so, I’d be interested to hear of people’s experiences. I’ve recently invested in Steve McKnights Wrap Kit (and can’t wait to receive it). So I’m starting to think if I could apply any of these principles in Europe. Any insights on this matter would be most appreciated
Looking forward to some responses.
Hi alfred_dreeb[biggrin]]
As the subject suggest I’m interested in inquiring about entitlements/laws governing international purchases of property with an Australian based entity/trust?
Using an Australian based trust may cause a problem in obtaining a mortgage for an overseas property. Lenders generally like to have local control over the property for security. This may be further investigated for you by one of the many brokers on this site.
Also property, tax and real estate laws differ from country to country as do the timing cycles of the property market.I’ve recently established a family trust – because my accountant told me it was a good thing to do
As I’m recently discovering, through heaps of reading (ala Trust Magic), that a trust is a tax effective vehicle for attaining propertyThis is true in some cases; however you could consider hybrid trusts for tax implications. Hybrid trusts may be more suited to you dependant on your circumstances. You could also investigate a good managed or syndicated investment that uses trust structures.
Has anyone had any experience in attaining property overseas in Europe from an Australian based Entity. If so/not what were the dynamics/logistics/restrictions, etc of the entities/structures involved?
Most of listed Companies which deal in property, for example Westfield, use large overseas commercial developments, as do most superannuation entities. This is due to the large amounts of money at their disposal, where they need to be involved with large projects.
This limits the amount of information available on overseas markets with regard to residential property.
There may also be restrictions imposed on offshore purchasers, and this will vary from country to country. This is controlled in Australia by the Foreign Review Board and most countries will have an equivalent government department with an appropriate web site.Regards
Bryce Inglis
Property and Investment consultant
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.
[response from “Help Needed”]
In order to acquire property by way of a loan in Europe [or any country] with a foreign entity, the entity must have sufficient assets to secure the loan.
The loan originates in the country where the entity is registered – unless the entity retains sufficient foreign assets.
For example, based on the scenario outlined, you would borrow funds from an Australian bank or other lender, which are secured with assets in Australia. The funds are then invested in property in Europe.
If the loan defaults, the lender liquidates the Australian assets.
The principles of vendor finance, as they apply in Australia, may vary in European countries. Therefore it would be advisable to speak with a property lawyer or other professional before proceeding.
— Michael
new to discussion forums)
As I’m recently discovering, through heaps of reading (ala Trust Magic), that a trust is a tax effective vechile for attaining property.
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