just need to know what other people have done regarding financing properties in New Zealand. I am just about to start purchasing however unclear about where the security comes from if using Australian finance to buy in NZ. ie do you secure existing investments here in Australia or is the purchases in NZ enough of a security.
thanks in advanceXenia
Hi Xenia
In NZ you must have at least 20% deposit, so where this come from is up to you. but it can’t be the security of an OZ property. One way is to refinance the Australian property so you get access to the cash yourself then use this cash as the 20% deposit. Once you pay the 20% deposit the NZ property is enough security for the NZ banks. Does that answer the question ?
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi Xenia,
Also, there are a few smaller towns in NZ that the banks will require 30% deposit.
Apart from that, it’s very easy.
Good luck,
Del
Yes good point Del and also i found some real cheap properties i picked up last year for 23k i had to pay 10k towards my loan so thats nearly 50%, nearly not worth even getting a loan. Kiwibank bought in a rule the deposit must be 20% or atc least 10k.
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi Xenia,
I can help secure finance for Australian investors who intend to purchase in NZ, 80% max LVR at 6.85% svr,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Xenia,
While I don’t personally do NZ finance, I have contacts based in Sydney who I can refer you to if that’s more convenient. Otherwise Steve’s deal sounds pretty good rates subject to other costs.
Steve,
Have you got a direct relationship with a particular lender in NZ or is it a broker you use over there?Cheers, WM
Finding you smarter ways to finance your investments.
Hi WM,
The lender for NZ finance is in Australia,
regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Some more info, In response to the high level of inquiries I have received regarding finance for NZ,
Standard Rate 6.85%
Standard Application Fee $330.00 (Aust $)
Legal Fee (1 Property) $425.00 (NZ $)
Valuation Fee $500.00 (NZ $)Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Steve
one thing i’ve found over here (in NZ) is the banks are happy for me to get the valuation (in fact they ask me to get it). It’s a great document to have, will your financier let the buyer supply the valuation ? also i think $500 for a valuation is about$100 more than if you got it yourself.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi Westan
I have contacted the lending institution for a list of the valuer companies they use in NZ,
As long as you use the valuer on the list then what you sugest will be fine, I will e-mail the list to you as soon as I receive it,
Kind Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Thanks steve
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Westan,
You’re right about the valuations. The valuation is almost as good as being there yourself! Probably more thorough than an average building report. So far, I have paid between $380 & one at $425 for each valuation, depending on travelling time. (1hr each way travelling time for the $425 valuation).
I would think it would be cheaper to obtain finance via a traditional NZ lender. We have managed to do it from Australia, with no application or legal fee, but I think they take each application on it’s own merits. However, 6.85% seems a pretty good rate if it’s a no monthly fees loan.
I have found the Managers in NZ much more obliging than in Australia. They actually seem to provide a pretty good service too, don’t you think..
Regards,
Del
Hi del
yes i love the guys at Rotorua, they are fantastic, but i deal with the business banker and can’t direct people who are after only 1 or 2 properties too them , i think thay want at least 1 million loans from now on (or intention of eventually being that).
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hey Westan,
That’s a hell of a lot of $23,000 houses!![:p]
Bye,
Del
Currently the ANZ & Westpac standard rate in NZ is 7.50%
I source finance at 6.85% and no account fees,
on a $200.000 p&i loan that’s a saving of $84.00 per month,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
A mortgage broker friend in NZ tells me that HSBC is the only lender there that will loan overseas investors 90% to invest in property. There’s just one catch – you have to be a Kiwi. Knew there eventually had to be an upside to my heritage [
]
I don’t know what the interest rate is like, but for all you NZers out there, it’s worth checking out! I’d be interested in hearing how others go with this as I hope to invest in NZ later this year.Melissa
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