Investing with parents from overseas- help

Discussion in 'The Buying & Selling Process' started by Buyahome1, 6th Nov, 2017.

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  1. Buyahome1

    Buyahome1 New Member

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    Hey everyone,
    Me (Australian resident) and my partner (Australian citizen) want to buy a house in Australia with my parents from the UK.
    So they will put $200,000 in and we will get a loan for $200,000.
    What's the process with this situation? Do they still need to get permission from the FERB to invest?as they would be investing with us? The house we would be looking at isn't likely to be a new build either.
    Appreciate any advice
     
    Buyahome1, 6th Nov, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes they probably need FIRB permission
     
    Terry_w, 6th Nov, 2017
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  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Only if they're going on the title. If they're just giving you the cash then all good.
     
    Jess Peletier, 6th Nov, 2017
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not necessarily.
     
    Terry_w, 7th Nov, 2017
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  5. MWI

    MWI Well-Known Member

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    If I were you I would get proper advise, see a lawyer. Have you thought of all the possible scenarios of:
    - If one party needs access to this money, what is the plan?
    - Who will be on titles, what agreements will you set between each other?
    - Will anyone wish to access future equity?
    - Who will live in it or look after it, is it to be a rental? Then tax and estate consequences...
    Many, many, many issues to consider....hence seek proper advice....
     
    MWI, 7th Nov, 2017
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  6. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Firb approval for gifting cash?
     
    Jess Peletier, 7th Nov, 2017
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It depends
     
    Terry_w, 7th Nov, 2017
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  8. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Really? On what?
     
    Jess Peletier, 7th Nov, 2017
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    How it's structured
     
    Terry_w, 7th Nov, 2017
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  10. hash_investor

    hash_investor Well-Known Member

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    aah the structure, needs to be in every sentence
     
    hash_investor, 8th Nov, 2017
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  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes. If it could be alleged the cash is an exchange of rights and the legal owners are holding property on trust. The FIRB have also attacked cases when a foreign person / lender seeks secuiity over a AU title without a equity interest. Legal advice.

    There is also a possible impact if a temp resident and a citizen buy property. In some cases a sale may be required if you later depart AU or dont reside in property etc. All part of the FIRB legal advice
     
    Paul@PAS, 8th Nov, 2017
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  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Wow good to know thanks Paul!
     
    Jess Peletier, 8th Nov, 2017
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  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Resulting trust as well
     
    Terry_w, 8th Nov, 2017
    #13