Where to invest? Kiwiboy

Hi everybody! This is my first post on the forum and I wish everybody a great morning.
I'm looking at purchasing my first property either in N.Z or Australia.
I'm a New zealander who has lived in sydney for 7 years. I originally came from Wellingon in New Zealand but I'm trying to figure out should I invest in New zealand or Australia?
I really don't care ware I invest just as long as I get positive gearing on the property.
I have looked all through out New Zealand and Australia but it can be confusing to work out where would be the best pace to invest.
The questions in which I have would be:
1) If you are a 1st time investor and live in Australia but you are origonally from New zealand where would you invest?
2) Once you work out which country to invest in, which state do you invest because at the moment Sydney has just gone through the roof and I can't afford to invest here?
3)I believe in Australia, Tasmania, Perth and Adelaide look affordable at the momment but which state would you invest if you only wanted to spend $250K or below which offers positive gearing and oppotunity for capital growth. This also applys to New Zealand?

I'm sorry for going on but it can be quite confusing where to invest (New Zealand or Australia), and in which state & suburb. If any body can give some clues or ideas to help me out it would be much appreciated.
Thanks
Kiwiboy

Hello kiwiboy!

My wife and I have brought one IP in Melbourne and that was enough for us! Due to the stamp duty, the amount of rentals out there, the other additional taxes and house prices we have started buying in NZ. In less than one year we have purchased 2 IP's (for the same price as our IP in Melbourne) with good cap growth and good rent that pays the mortgage. We live in Melbourne and are kiwis but our loans are from NZ banks and to get an NZ loan you don't have to be a kiwi or resident in NZ. I have articles on my web site related to this.

Search within this forum for the most amazing thread I have seen on NZ Suburbs (its titled "NZ Suburbs" - its about 7 pages long and tells you where to buy in NZ.

Best regards

marc@propertytalk.co.nz

The NZ market has also been infected with the hype about investment property recently. If you have a look at the market you will see that there have been double digit increases in house prices in the last two years.
The main drivers for this property boom are very similar to those in Australia and elsewhere in the world: low interest rates, high immigration, worry about the stockmarket etc.
Don't forget that the NZ economy is very narrowly based and I believe, because it is a very small market with a total population of only 4 million people, it is quite volatile. Immigration has in the past very quickly turned into net emigration. I know people who sold their properties at a 30% discount to Registered Valuation during the last downturn only 5 to 6 years ago, when the NZ economy looked very gloomy. People were leaving, mainly to come to Australia!!
NZ could be a good place to invest if you are a bit of a gambler, or are prepared to invest for the very long term...I too have seen these booms come and go...just be sure you don't have to sell during the next downturn.

Good points Frenchman.... As with all investments there is risk and I suppose it all depends on how much risk you want to take. I personally think investing in Aus is more of a risk than NZ.

Best Regards

Marc

Marc,
YOur website is fantastic!!! How long have you had this going? I too am a kiwi living in Sydney--about to relocate to brisbane for fiance's promotion and we've been weighing up our choices in terms of taking advantage of the market there(Dolf de roos has said good things about South east Queensland as have lots of people) or buying back in NZ because its much more affordable. we let a couple of good deals go in Nz---one wasn't positive but not far off. Anyway I'm looking forward to having a good look at your website.
Thankyou
Hannah

Hi Hannah,

thanks for the kind words! The site has been up only one month now. There will be a few more things coming online soon.

Best Regards

Marc
marc@propertytalk.co.nz

For your first IP I would suggest an area you are familiar with (its one less things you need to analyse first) - so this may be NZ or it may be Sydney.

I would also suggest that you consider somewhere local FOR THE FIRST ONE, as that way it will be less stressful for you to keep an eye on.

Maybe you travel back to NZ regulalry? If so - not a big deal eaither way.

But mostly - make your first IP by looking for opportunities. Wherever you see an opportunity = there is your first IP...

Tas

The great thing about this forum is that there are so many members who provide great advice!

Tas Investor - another good point that holds true.

Best Regards

Marc
marc@propertytalk.co.nz

quote:
For your first IP I would suggest an area you are familiar with (its one less things you need to analyse first) - so this may be NZ or it may be Sydney.

I would also suggest that you consider somewhere local FOR THE FIRST ONE, as that way it will be less stressful for you to keep an eye on.

Maybe you travel back to NZ regulalry? If so - not a big deal eaither way.

But mostly - make your first IP by looking for opportunities. Wherever you see an opportunity = there is your first IP...

Tas

I really appreciate everybodies feedback. The great thing about this site is that you can feed off each others experiences.
Thanks Kiwiboy