[Moorf]

I hope someone out there can help. My parents have tasked me with buying an investment property in the run up to their proposed move to NZ in four years time.

The idea is that I purchase a small apartment in Chch and rent it out via an agency. I've heard rumblings about such things as loss making companies and family trust etc etc but I'm not entirely sure which, if any, is of most use to them. They'll be buying in cash and looking to make ££ on the sale of the property and, of course, rental income.

What's the most tax efficient way of doing this? And can it be done, without consequence, by non-residents living in the UK or would it be better to do in my name as I have PR etc etc.?

I've also heard that apartments aren't worth touching in NZ - although this seems the sensible type of property to buy as there's less maintenance - what's the general consensus on the best type etc?

I just thought I'd throw this open to the forum as I know there are others on here who are investing in property from abroad and from NZ.

Cheers
Moorf

[jaycee]

As I mentioned in another topic, I bought a house in NZ, which I rent out (but hope to live in myself at some point!). I bought it while living in the UK and I don't have PR, so I don't think there would be any problem with your parents purchasing.

As for tax, well I pay it on my rental income and my accountant has never suggested that there might be any way of avoiding or minimising it. I also have a salary so I've used all my allowances, don't know if your parents still work? Your folks should avoid selling the property before they move to New Zealand though - if they own a house in the UK, they will get hit by Capital Gains Tax if they sell their 'second home', but you're probably already aware of that!

I currently let my NZ house privately, but I have also rented a flat in the UK through an agent, and my best advice would be to choose your agency carefully. All the ones I used over here were hopeless - never let me know about any problems, basically did nothing for the fees I paid them other than collect rent. Maybe NZ agencies are better.

Regarding apartments, I would have thought that one in an area with a high student population, i.e. near a uni, would be a reasonable bet?

[Avalon]

Moorf.

Id be interested to hear what you have been told about buying apartments. Its something im planning as a possibilty for us to cut down on commuting at some point.

Otherwise - the only advise I can offer regarding the tax efficiency is 1/ to talk to an accountant. (We had a chat with one up here regarding companies etc and to be honest it was great to get the real facts - theres a lot of hearsay regarding this topic)

Also - 2/ theres a book or two by a guy called Peter Sibbald regarding reducing taxes in NZ. Ive (still) not read them :o but they may be useful. Also, Anita Bell (The godess of budgeting) has a book out about "YOur Investment Property" which again is probably a really good idea to read.

HTH