Residential property investing in Australia for my son?

Residential property investing in Australia for my son?

0:01 AM, 24th February 2025, About 2 months ago 2

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I have a UK property investment Ltd Company and I plan to invest in some residential Australian property. My son has lived in Australia for the last 15 years and I plan to build a portfolio around him that he can inherit.

I would appreciate any advice as to the best structure to establish in Australia to achieve this target.

I acknowledge that sourcing top informed professional advice is necessary and if any member has already travelled this route please share your experience with me.

Thanks,

Jim


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Ryan Stevens

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11:10 AM, 24th February 2025, About 2 months ago

Why give yourself and your son the headache? Owning property abroad is a pain in the neck - even more hassle than owning property in the UK. Most countries penalise foreign investors because they cannot vote and are an easy target for governments in need of extra cash.

Property is also an inflexible investment, if you need to realise it quickly and cost effectively, and tends to have high upfront costs eg stamp duty and legal fees, etc.

You would probably have less hassle and costs and more flexibility for both yourself and your son if you just invest in tracker funds (you may be able find some funds that track Australian property) or similar. If you decide to go this route speak to an Independent Financial Adviser (not St James Place, who are not independent).

If you just have dividend income funds, the dividends your company receives would generally be free of UK corporation tax, so you get a boost of up to 26.5%.

You would need advice on share ownership, to ensure that the value of the company shares is not in your estate for UK IHT purposes. I am a Chartered accountant and Chartered tax adviser.

Neilt

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20:16 PM, 24th February 2025, About 2 months ago

I owned an apartment in Central Sydney for 20 years whilst living in the UK. It was constantly let out and the agent was super efficient.
I had little to zero problems, no headaches, and a tidy profit when I sold it.
Australia is a great place to invest for your son, if my experience is anything to go by. But I'm unable to advise on how to structure the purchase as I bought it in my name, something that you can no longer do as a foreigner unless your son buys it in his name or you buy off plan.
The government departments are very helpful, so your son should contact them to get the up to date information on investing in Real Estate booklet

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