I read a couple of weeks back on this forum that as an o/s investor in NZ i would need a min of 20% deposit. Can i use my australian lender to finanace a property over there? and would this be acceptable considering im using equity in my residential property (worth $160k, owe $90K). im looking for an I/P of <$90K. Anything else i should be aware of buying over there? Sorry lots of questions [^] cheers.
Hi,
I imagine that this is a question that you need to ask your lender as all we would be doing is second guessing what s/he might say.
As for what to be aware of… it’s just like anywhere else in that you need to do your due diligence over:
1. The area
2. The property (numbers)
3. The property (structure)
4. The tenantCheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I’ve asked CBA this exact question. CBA will not lend me to purchase in NZ or anywhere out of Australia.
However, if your bank has a subsidiary in NZ, the situation may be different.
Afternoon Heidic,
1. Yes, you must have 20% deposit & re drawing on your equity is o.k.
2. You need to find a really good mortgage broker and need to buy on a “stand alone” basis.
3. Don’t forget that rental attracts 12.5% G.S.T.
4. MOST IMPORTANT OF ALL – you must know your areas. Do lots & lots of homework.Cheers big Ears!!! Susie.
Hi
Further to Susies point about GST in NZ. You would only have to pay GST if you are registered. I think you need to get advise but from what I understand it is only worth registering for GST if you own a significant amount of real estate in NZ.
this site will help with this question (NZ version of ATO)
http://www.ird.govt.nzHowever your cashflow will be subject to tax as nz has a reciprocal arrangement with oz regarding tax.
On this site
http://www.propertyinvestor.co.nz
through the ESC link you find information regarding the tax arrangement.
I have posted information regarding brokeraging etc in nz in a previous post you might like to look up.
My person view is to go through a broker and by cashflow properties that way you are not at the whim of the changing currency.
I hope this helps
tamara
Yes you can borrow against a property in Aus to get a deposit to buy in NZ… However the loan on the property you buy should be in NZ dollars and be done through an Aus company who can lend in NZ or by a NZ company. This way you don’t get hurt by currency movements.
Good luck!
Otto Dargan
Home Loan Manager
Mortgage House Five Dock
0297128988
[email protected]Otto
Any suggestions of a GREAT mortgage broker in Australia who can arrange this?
David U
You wont be able to get a loan in NZ$ from and Aussie bank.
I would also be very surprised if you can find an NZ bank that will loan an Aussie to buy NZ property with only 20% down. I had looked into ths in the past and about the best I could find was 65-70%. If anyone has gotten a loan with only 20% down it would be great to find out what bank?
Slum Lord
Slum Lord
I made some enqires last year and got feed back through ASB and mortgage brokers that said 20% down. Admittedly I have not followed through as of yet but I think that the right broker in New Zealand will be able to help you there.
Tamara
Hello Everyone,
20% down seems to be the norm. For foreigners investing in Australia, banks such as ANZ will require a 20% Deposit.
Im sure this will work in reverse, if the loan originated from NZ.
As Tamara mentioned, a broker would be the best way to go.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auHow about setting up a NZ company and purchasing property through a company trust with a NZ’er as the loan guarantor? Or setting up a partnership with a NZ finance partner to purchase property. Finance is in their name, you provide the deposit?
“All the world’s a stage, and you choose the role you want to play on that stage” William ShakespearLeigh
Try this web site to help you answer your question.
http://www.company-solutions.co.nz
NZ definately operates a trust structure but I am unsure as to how it specially operates.
Tamara
try these dudes
http://www.leveragefinance.co.nz
it is ‘run by investors for investors’.
Brad Sugars uses them for all his NZ propertygreat web-site.
cheers-
MiniIf you are interested in NZ mortgage finance then you will find a free question service at http://www.mortgagenet.co.nz/mobile.phtml
I started this mortgage broking business (property investment specialists) on-line in 1996 and we have financed hundreds of offshore investors into NZ property.
Each application is considered by lenders on their merits and we have financed levels over 80% for offshore investors on occassions but to do so is generally an exception.If youre wanting to look at peroperty investment options in NZ . check out http://www.hpc.co.nz theyre a property sourcer. (ie finders fee)
Ive heard nothing but positive about them, and keiran (the director) is a regular poster on the different investor forums.
im not sure of the links between mortgage net & hybrid property consulting. (however mortgage net is advertised on the hpc site)
Cheers
CraigNZ Property Investing News
http://www.Landlords.co.nz
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