Join our investing community

OZ IP's and living overseas for 2 years?

Discussion in 'Money Management' started by Dunsborough, 22nd Jan, 2007.

  1. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Hi fellow investors

    Slightly different issue i am sure but one i am sure investors here will know answers to. Lots of issues involved and i bet i havent even considered half of them

    As Part of my term Living on equity Plan, i would like to go to New Zealand for a couple of years as a tourist. I think Aussies going to NZ is nearly as easy as going interstate?

    My PPOR would become a rental, which is ok for 6 years.
    While i never get Property manager to pay rates, insurances, strata fees etc at moment i could ask them to manage those?.
    Will have managed funds here in oz as well.

    I would be living on LOC, (not yet setup), and i presume can just keep drawing down online from oz to my chosen nz bank? exchange fees involved? Lots of things i am unsure of, ie still lodge oz tax return while away? lodge nz tax return?

    Can i have mail redirected to nz? I feel if i research properly and tie all the loose ends will be great fun but i know if i dont get right (like a competent PM) could all be very stressfull and expensive if i had to fly home every time anything unexpected happend.

    I have to confess i dont understand what visas are required etc as would be asking to stay up to 2 years but not asking to work etc.

    Anyones thoughts welcome especialy if you think i am overlooking anything
    Has anyone run ip's from overseas like this, do we have Kiwi posters here?

    have a good day everyone
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Yes, NZ is effectively another state of Australia (apologies to the kiwis here :D )

    No VISA required for NZ as far as I can tell ... Visa free countries - New Zealand Immigration Service

    If you have a criminal record, you'd want to check with the NZ govt about entry.

    Check the DFAT website for some useful info: Travel Advice for New Zealand - Australian Department of Foreign Affairs and Trade

    ... important things to consider for a longer term stay include health care cover and insurance.
     
  3. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Thanks Sim

    cheers for that, gee i hope no-one thought i was being flippant about travel being like one state to another, i just mean i know aus and nz have clearly set out trade and social security laws.

    Ok you already have enlightened me re health insurance, and can i ask what is other insurance you refer to?

    Looking at the link i also have to prove i can support myself, i wonder if NZ law recognises access to a huge loc as clearly being able to support myself?
    i suppose you simply transfer 100k to a savings account and show them that? things i have to research

    all ideas greatly appreciated
     
  4. julia

    julia Active Member

    Joined:
    3rd Jan, 2007
    Posts:
    38
    Location:
    Beachmere Qld
    Dunsborogh,

    Yes you would still need to lodge an Austrlian tax return for your rental properties over here and technically moving overthere can trigger a CGT event on your investments (but not the properties). You can elect not to have the event triggered but it is not all bad as triggering it can mean no CGT for the period you are away.
    I recommend you read my booklet called Overseas, for more detail. It is available under the free publications section of bantacs.com.au

    Julia
    bantacs.com.au
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Insurance - will you buy/drive a car ? will you have personal belongings/valuables with you (camera etc) ? are you covered for health costs ?

    Also don't forget that if you don't maintain private health cover in Australia you may need to pay a surcharge if you are still going to be considered an Australian resident for tax purposes. Speaking of which, there may be things you need to do to qualify to be an Australian resident for tax purposes - you'd need to check with the ATO on that (their website should have the info).

    Dealing with money in NZ should be pretty easy ... and you can possibly get away without a NZ bank account - depending on how you manage your money.

    I suggest you get a couple of Australian credit cards (you probably have these already) and arrange for them to be paid out in full each month from your Australian bank account. Then in NZ, pay for everything you can on credit card, and just take cash out of an ATM as required for day-to-day use. ATMs are common in NZ and pretty much all of them take Australian ATM cards. There are ANZ and Westpac (or the NZ equivalent) banks and ATMs in NZ ... check with your bank, you may be able to get fee-free withdrawals. I suggest multiple cards, just in case you have problems with one while away.

    Even if you do have to pay a fee for withdrawing cash, try taking out a larger amount less often - the fee is a usually a fixed amount ($5 typically), so the more you draw out, the lower this fee is as a percentage of your withdrawal.

    I recommend you carry an Amex card while travelling - even if you only keep it for emergency use ... Amex have offices pretty much everywhere around the world, and can typically issue you a replacement card within 24-48 hours if you lose your card, or worse - if there are fraudulent charges on your account which require you to cancel your old card. This has happened to me while on a work trip to Singapore for 4 weeks ... Amex were quite helpful and I had a new card the next day.

    I wouldn't worry too much about proving you can support yourself ... just make sure you have a couple of credit cards and perhaps $10K or $20K in your bank account. Perhaps check with the NZ Immigration Service beforehand as to what is required before you arrive.

    Also remember that NZ has strict quarantine laws - so don't try and take food/plant items with you without checking first. Similarly on your way back - don't try and bring stuff back from NZ into Australia.

    As for mail redirection and such - I know there are companies that offer services for people who are travelling around Australia long term (eg motorhome trip around Australia) - they hold your mail and forward it to an address you tell them (eg the caravan park you are staying at, or the post office of the township you intend to be in soon). I'm sure there is someone who can do similar to OS destinations as required.

    There are also portfolio-management companies which do most of the work of managing your investments for you (effectively, a personal assistant) ... I don't know how much they cost, or whether they are suitable for your needs - but it's worth looking into this as a possibility for while you are away.

    I may be in a similar situation as you sometime in the next few years - we are planning some extended multi-year trips OS, and will need to ensure we have these issues covered as well. I haven't yet started looking into the logistics in detail yet.

    Let us know how you go :D
     
  6. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Thanks Sim
    you have given me food for thought on several fronts there, the plans are a work in progress so yes i will in the future post any info i come across
    cheers
     
  7. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    Julia thankyou for the suggestion to read your overseas i-booklet, learnt a lot, you have some other intersting ones there as well.
    I tried reading the one relating to tax losses, ie i think has been on somersoft the discussion of someone retired living on equity and being negatively geared and making a "income" tax loss and sometime down the track offsetting a "capital" gain against the accrued "income" loss.
    Anyway i am learning something everday lately, thanks everyone
     
  8. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Dunsborough

    Unrelated I know, but which part of NZ are you moving to? We spent a lovely year living there about 9 yrs ago and found it a fascinating country. Full of helpful people, beautiful scenery and a year that we'll not quickly forget.
    Hope it all goes well for you :)
     
  9. Dunsborough

    Dunsborough Active Member

    Joined:
    16th Aug, 2006
    Posts:
    32
    Location:
    Bunbury WA
    hi jacque
    will probably head that way in aproximately 2 years and i reckon spend 2 years there. probably travelling solo and rather than backpack like i did when i was younger i might look at renting short term in major centres so i have a base and move out and about and explore, basicly try and see as much as i can without doing any of the extreme mountain climbing or skiing etc:) cheers