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Foreign Property Gift

Discussion in 'Accounting & Tax' started by York, 2nd Oct, 2015.

  1. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
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    1,621
    Location:
    Sydney
    I spoke to a friend of mine yesterday who told me they were were set to be gifted a house in Europe from family.

    The house will be unencumbered with deeds in hand. It's worth about 80k AUD. His parents will be paying all costs for transfer etc. No cost whatsoever to my friend. Parents pay all costs even after transfer. Will not be rented. Will be used as a holiday house.

    Question he asked me is should he accept the offer? Is there anything that could hurt him and his assets here in Oz? But just wants to be sure it won't harm his ability to finance other properties or projects here in Oz.
    Don't think it would seeing as there is no debt on it, but want to be sure.

    Seeing as I don't know much about foreign property I'd thought I'd ask my brains trust. :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It can't hurt his ability to get finance here if he is not liable for any debt. If it was rented it would actually help.

    Tell him to look into the CGT consequences
     
  3. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
    Posts:
    1,621
    Location:
    Sydney
    Thanks Terry. Will tell him.