One or two portfolios for two countries??

[Tyler]

Hi guys,

I just need a bit of advice on a bit of a curly one.

I currently have one IP in NZ, which is ticking along quite nicely. About four months ago I secured a job in Australia, contracting for a NZ company and earning NZ dollars. It is quite a good little earner as all my expenses are paid for.

After having a good look around, I have decided to extend my IP portfolio to Queensland. I am wondering if it would be a good idea to add this new property to my NZ IP portfolio, which is set up as a company, or set up an entirely new IP portfolio (company) for Australia?

The reason I ask this, is because I would like to take advantage of the FHOG in Australia. I am also unsure on how finance will work, as I am not earning Australian dollars.

If anyone could shed some light on how I could approach this scenario, that would be a fantastic help.

Tyler.

 

[Propertunity]

You can only qualify for the FHOG in your personal name.

If you are contracting and using a company structure, then from an asset protection point of view you would not own IPs in that same company. Neither would you use a company structure to hold IPs in, in any event.

You need to seek specific legal and accounting advice.

 

[Tyler]

Ok thanks propertunity. I think that is probably the best idea to get a better understanding of the situation.

Tyler

 

[Nemo30]

I'm surprised NZers are allowed to access the FHOG without some qualifying residency period.

I hope there is some reciprocal arrangements were Aussies can take advantage of NZ tax payers.

 

[Jas]

What you're suggesting is quite complex, international income, paying tax in two countries and so on. I second the suggestion that you get a tax advisor to give you advice. The FHOG by itself I don't think should be a major consideration in light of all the other issues which may come up.

Jas

 

[tobe]

NZers can get the FHOG, if we go over there we get squat, except no stamp duty, no capital gains tax, and no negative gearing, whether its out first home or investment property.