Investing in Australia

[Guest Josh&Jan]

To anyone listening.

We are living in England and wish to invest in Australia. We are doing this not for ourselves, but for our children, who are currently 8 and 10. We hope by investing in Australia, we can increase their chances of one day settling there permanently.

 

Any advise or pointer would be much appreciated.

 

Cheers

:huh:

[Guest Liam]

Please think carefully before investing here in Australia as a non-resident. Your investments will pay tax on earnings at non-resident rates and you have to consider that you will not only be taking the normal investment risk but Exchange rate risk as well as if you children do not move over here then if they decide to cash the investments they may be worth cosiderably less/more in 10 years depending on the GBP/AUD$ exchange rate movements.

 

Under Australias tax treaty with the United Kingdom, the withholding tax rate for both franked and unfranked dividends is as follows:

 

unfranked dividends

 

the person paying the dividend is a company that is a resident of Australia, and the person receiving the dividend is a company that is a resident of the United Kingdom which holds 80% or more of the voting power of the company paying the dividends and satisfies certain stock exchange listing requirements, the withholding tax rate is nil, or

 

the person beneficially entitled to the dividend is a company which holds directly at least 10% of the voting power in the company paying the dividend, withholding tax is limited to 5% of the gross amount of the dividend, or

 

all other cases, withholding tax is limited to 15% of the gross amount of the dividend.

 

interest

 

tax is chargeable on interest where it is derived by a financial institution that is unrelated to, and dealing wholly independently with the payer, and the transaction does not involve back-to-back loans.

 

hope this helps.

 

We can offer a range of investment services if you decide to proceed.

 

regards

 

Liam Shorte

[Guest Australian Property]

Hi Josh & Jan

 

I think the most important aspect here is that you believe by investing in Australian real estate, this will help you or your children attain legal status to enter and settle - unless you have a valid background or ancestry this will not be the case.

 

However, investing to realise a 'buy & hold' long-term capital growth strategy can deliver high returns, if invested in the right area, the right property and at the right price (IE) a residential investment property can double in less than 7 years in major growth States within Australia.

 

Happy to help as required, assuming the first part has not put you off and please remember, you don't pay tax on capital gains until you sell the item (asset) you purchased and you can offset the tax liability with your expenses associated with the capital gain.