Gift of half mill @ 3%
- Thread starter jech
- Start date
It would be a loan not a gift then.
I would purchase an IP or 2 with 50/50 tenants in common over a long term (min 10 year) hold... they pocket the surplus rental cash flow and CG and I'd pocket the remaining CG.
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If your benefactor's interest available is so low, that would indicate to me that his countries finances are pretty awful.
If offered I would only accept if I could hedge the currency at less than the available SAFE margin. I would not borrow short and lend long. Imagine if you had lent money denominated in US$ in the early oughties because you could borrow cheap Swiss francs? That would be painful.
I have a significant sum denominated in the loony and have lost 30% of face value in a similar time. Inflation/deflation is an insidious thing but losses are real.
If offered I would only accept if I could hedge the currency at less than the available SAFE margin. I would not borrow short and lend long. Imagine if you had lent money denominated in US$ in the early oughties because you could borrow cheap Swiss francs? That would be painful.
I have a significant sum denominated in the loony and have lost 30% of face value in a similar time. Inflation/deflation is an insidious thing but losses are real.
I would get a proper loan contract drawn up and then just put it in an offset account against a main residence loan or just pay off the loan.
Consider that it would be taxable income to them and they could be a non-resident for tax purposes. You may be required to withhold tax from it and remit to the ATO.
Consider that it would be taxable income to them and they could be a non-resident for tax purposes. You may be required to withhold tax from it and remit to the ATO.
