CGT for New Zealand investor

[Young Val]

Hello Investing Gurus !

My brother is a New Zealander, living in Nz. Is his buying and selling a property in Australia a possibility ?

Is there any red tape require when he trade?

He wish to buy a block of land in NSW , for $ 65k cash, borrowed from his ex wife, who happens to be Australian here.
Then he want to sell for about $100k.

When he sell, he intends to give $65k back to his ex., and the profit $35k to their joint son, who lives in Oz.

Does anyone pay CGT ?

Any help will much appreciated !

Young Val.

 

[Aceyducey]

Young Val,

Property doesn't work that way here unfortunately.

Firstly CGT would apply on any profit from this property.

Secondly, you have to provide for purchase costs - stamp duty & legals (and inspections) & sales costs - legals

Thirdly, if he is borrowing to buy, he'll probably need to go through Aussie banks.

Fourthly, how do you know you can sell for $100K or is this some kind of dodgy?

Cheers,

Aceyducey

 

[bundy1964]

Hi

I would think the FIRB would have to aprove the deal for a non resident?

bundy

 

[landlords.co.nz]

if hes a kiwi

FIRB shouldn't have to be involved as if hes a kiwi,

he can be a resident of australia.

Thus wouldnt think there would be a restriction like that.

Someone who knows please enlighten.
I dont want to have to become a citizen to buy aussie property. being a NZ resident in Australia is enough?