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A Request for Some Financial Advice on an Auckland Property Investment

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  • A Request for Some Financial Advice on an Auckland Property Investment

    I have a scenario that I hope someone with financial expertise can provide some directive answers to assist with some decisions. I am an Australian resident and I own an investment property in Auckland with a $165,000 loan and have a rental guarantee of 8.5 years at market rate. According to my calculations, I can pay off the remaining loan using the rental guarantee.

    I wish to structure my finances to ensure I minimise the income required to be placed into my annual tax statement and thereby preserve my Australian pension. The pension is reduced in accordance with an income scale, which includes income from rental properties. The more the income from the rental property that is not deductible, the more I must declare and the more the pension is reduced.

    Some possible options that are available and may be discussed -

    1) Change the ownership of the property to a family member. Is this option viable, and if so what are the costs involved?

    2) Place the ownership of the property into a Trust with other family members, and if so what are the costs involved?

    3) Extend the loan and draw down on the equity of the property and have the loan on interest only whilst the drawn down loan is placed into superannuation. This way I avoid capital gains tax and reduce taxes when the super matures in about 10 years time. I have a suspicion the banks will not permit this option to a foreign investor.

    4) Sell the property and place the gains into superannuation.

    5) Other options which I am currently unaware of - Some advice here would be appreciated.

    Also, a recommended financial planner or solicitor to structure the property and loan would be appreciated.



  • #2
    #2 maybe. Kenina at Pathfinder Solutions might be able to help. You need tax and accounting advice not legal I think.
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