Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of ZippyZippy
    Participant
    @zippy
    Join Date: 2004
    Post Count: 7

    I know that NZ doesnt have stamp duty, so what other expenses (or charges) would an australian investor face in buy and then renting out a property in NZ
    Thanks

    Profile photo of tamaratamara
    Member
    @tamara
    Join Date: 2003
    Post Count: 56

    Hi Zippy

    You would need finance for converyancing, LIM, building inspection (if you choose to do one), plus have building and landlords insurance organised for when you take ownership(you will require proof of this for you bank) and of course your deposit.

    Tamara

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950

    Hi Tamara and Zippy

    Some costs
    conveyancing allow 1,000
    Builder 300 – get the builder to check the LIM
    so its not that different from oz
    regards westan

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284

    PMJI, but I also have a question regarding costs in NZ.

    What’s the situation with buying and renting property in relation to GST?

    Looking on property Websites, I’ve seen some prices stated as $X plus GST, while most just have the price. Is there GST on all house sales or only on some, and why would some be advertised as “plus GST”?

    Likewise with rent. Is there GST on rent? If so, and I’m told what a place is currently being rented for, would that be before or after GST has been taken off?

    Thanks.

    GP

    Profile photo of muppetmuppet
    Member
    @muppet
    Join Date: 2003
    Post Count: 900

    Hi Greatpig

    Residential property and rents for same are excluded from GST.

    Therefore when you buy a house or unit for rent you pay no GST and pay no GST on rents received.

    However commercial is different.

    Regards

    Profile photo of GreatPigGreatPig
    Member
    @greatpig
    Join Date: 2004
    Post Count: 284

    Muppet,

    Residential property and rents for same are excluded from GST

    Thanks for the info.

    Looking back on the Website, I see the ones that indicate +GST seem to be all vacant land, some of it described as rural with grazing, so I guess that’s classed as commercial.

    GP

    Profile photo of DDDD
    Member
    @dd
    Join Date: 2004
    Post Count: 508

    A great thread as Im looking to invest on NZ shores before too long. Thanks guys, again this forum proves its worth for regular investors like me.

    DD

    Don’t sweat the small stuff,and it’s all small stuff!!

    Profile photo of ZippyZippy
    Participant
    @zippy
    Join Date: 2004
    Post Count: 7

    thank you all
    this has been a lot of help, hopefully now I might be able to convince my wife that it is not that scary
    Zippy

    Profile photo of MiniMogulMiniMogul
    Participant
    @minimogul
    Join Date: 2002
    Post Count: 1,414

    The following is an excerpt from our client mail-out (3800 words in total) – let me know if you want the whole thing. No hotmail addresses though as they are a pain and always bounce.)

    How much does due diligence cost? What other costs are involved?

    LIM reports are around $130- 150 NZD from the local council.

    Building reports (pre-purchase inspections) are usually between $150-550 NZD.

    Lawyer for conveyancing of property is around $500-1000

    Insurance is usually around $200-400 p.a. – you should organise this to start on settlement day in NZ (‘contract date’ in Australia). We would be happy to hook you up with an insurance broker.

    Cost to connect electricity if required, i.e. for maintenance or tradespeople – approx. $120

    Rates are usually $450-$1600 pa., it depends on town.

    Property management fees: 8-10 percent (full service.)

    Tradesmen: Builders $25-35 per hour
    Handyman/woman $15-20 per hour
    Labourer $10-15 per hour

    cheers-
    Mini

    joy to the world

    Profile photo of MiniMogulMiniMogul
    Participant
    @minimogul
    Join Date: 2002
    Post Count: 1,414

    The following is an excerpt from our client mail-out (3800 words in total) – let me know if you want the whole thing. No hotmail addresses though as they are a pain and always bounce.)

    How much does due diligence cost? What other costs are involved?

    LIM reports are around $130- 150 NZD from the local council.

    Building reports (pre-purchase inspections) are usually between $150-550 NZD.

    Lawyer for conveyancing of property is around $500-1000

    Insurance is usually around $200-400 p.a. – you should organise this to start on settlement day in NZ (‘contract date’ in Australia). We would be happy to hook you up with an insurance broker.

    Cost to connect electricity if required, i.e. for maintenance or tradespeople – approx. $120

    Rates are usually $450-$1600 pa., it depends on town.

    Property management fees: 8-10 percent (full service.)

    Tradesmen: Builders $25-35 per hour
    Handyman/woman $15-20 per hour
    Labourer $10-15 per hour

    cheers-
    Mini

    joy to the world

    Profile photo of wayneLwayneL
    Member
    @waynel
    Join Date: 2003
    Post Count: 585

    >>Tradesmen: Builders $25-35 per hour
    Handyman/woman $15-20 per hour
    Labourer $10-15 per hour<<

    Sheez! Tradies are cheap!

    What is the cost of living like compared to Oz, Mini?

    http://www.tradingforaliving.info

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