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Setting up a family trust to buy a property

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  • Setting up a family trust to buy a property


    So I currently live in Australia but I'm from NZ. I'm buying property in NZ off a family member but I am not able to use my kiwisaver or get the first home owners grant as I am a tax resident of Australia so technically an overseas buyer.

    I have been told maybe I can get around this by setting up a family trust and buying the property under the trust and when I eventually move back to NZ I can buy a property under my own name and still get away with using my kiwisaver for my 'first home' and also be entitled to the first home owners grant?

    Does anyone know anything about this? I don't really know who to speak to as I don't want to speak to my bank or anyone from kiwisaver and admit Im trying to find a loophole...

    The property I am buying is under the house price cap for the home start grant so if I was living in NZ I would be entitled to it.

    Can someone also explain how the whole gifting of an asset in a trust work?

    Thank you

  • #2
    Do you need to use your Kiwisaver? ie do you have enough deposit without it?

    If you have enough deposit, why muck around? You aren't gaining anything as you still own the Kiwisaver and still benefit from Kiwisaver later in life.

    First home grant - you have to live in the home for 6 months, so seems you would struggle with this. Also is it worth committing a kind of fraud to get $5,000?

    Lastly a Trust will cost around $2,000 through a lawyer and a lot of hassle and future costs.

    Book a free chat here
    Ross Barnett - Property Accountant


    • #3
      ... And just to add another little "No you shouldn't", it actually won't work at all. You would almost certainly need to be a Trustee of the trust, in which case your name would be on the title, and you no longer qualify for your first time grant.
      AAT Accounting Services - Property Specialist - [email protected]
      Fixed price fees and quick knowledgeable service for property investors & traders!