Hi All, just found a great return on a house in NZ – $60000 and $135p/w – it works![cigar]
Does anyone know of any differences between Aus (or QLD) and NZ with stamp duty, taxes etc?
Are the NZ Gov encouraging Aus buyers?[cowboy2]
(This is probably a silly question) how do you deal with the different currencies?
MattNobleoneMember@nobleoneJoin Date: 2004Post Count: 146
I have just bought 2 and am about to settle on my third in NZ.
To partially answer your questions… I think you’ll find that NZ investing is far cheaper with regard to set up costs because they don’t have all the mad taxes that we have in OZ.
Your NZ solicitor should be able to tell you all the details… Where are you buying? I only ask because my solicitor in New Plymouth (North Island) is fantastic.
I don’t think the NZ Govt are going either way with OZ buyers… AS usual Govts just look out for themselves and are really uninterested by the flurry of oZ investors quietly invading NZ LOL.
Dealing with the different currencies… I dont… I mean that I think in terms of OZ $ and the better exchange rate means that when the deal is done and the dust settles there’s usually a bit of cash over for incidentals or to kick start the NZ bank accout until the first tenant moves in.
Not sure if my ramblings will help… But that’s my 2 cents anyway.
[cigar]melbearMember@melbearJoin Date: 2003Post Count: 2,429
Matt, there are tonnes of Aussies buying property in NZ these days…. I think I’ve read it in at least two different magazines recently….
There is no stamp duty in NZ, and you can definitely still find CF+ places – just look at any of Minimogul or Westan’s posts – and I think CastleDreamer’s as well – they find them for their clients.
But you need to do research, there are a lot of aussies that pay too much, and buy site (sight?) unseen, so be wary.
Thanks guys. Very helpful.
That no stamp duty is a good thing.
Barry did you travel to inspect these places or have someone do them for you?
Ideally we would love to see what we are buying but this travel money then adds to the IP cost.
The place is in Rotorua. It might be a bit to ask but does anyone have a referral for a solicitor and maybe a professional building inspection service?
MatttamaraMember@tamaraJoin Date: 2003Post Count: 56
Just a word about Rotorua. When doing your due dilligence check out with a local property manager. I have been told that there are some suburbs there that PMs will not touch.
Thanks Tamara. Definately a good PM is a must.
MattwilandelMember@wilandelJoin Date: 2003Post Count: 761
There may be no stamp duty when purchasing, however, generally CGT will still apply.
I’d strongly suggest that you talk this thru with a GOOD accountant. There are different structures to buy in, but “caveat emptor”.
Please seek good legal advice.
DelIbuycashflowMember@ibuycashflowJoin Date: 2004Post Count: 274
What do you want to know about smelly Rotorua?
I have a good portion of commercial property in Rotorua and a couple of houses as well.
I was dragged up in that neighbourhood so am only too willing to help. There are good areas and bad but you can still find a bargain in both.
Some Property Managers will not take on IP’s in Fordlands but you can still get some very good buys and still get some good tenants there as well. Interestingly, the suburb is adjacent to some more affluent suburbs.
I have a property in Glenholm which is a good area but I’m still going to court on Wednesday over it – sometimes you just can’t pick them.
PM me with some details if you want to know anything specific
JeffjamiedellamParticipant@jamiedellamJoin Date: 2004Post Count: 36
if you have to fly to new zealand to buy an investment property, is the flight a tax detuction?westanMember@westanJoin Date: 2002Post Count: 1,950
Rod as far as my tax stuff, i was living in Oz when i started investing in NZ (as you know) i’ve reimbursed myself from profits in my family Trust and will claim it as atax deduction.
As far as Fordlands goes i’ve mentioned often that fordlands in Rotorua is a no go area for some managers. Having said that if you go through the area you wouldn’t think it is too bad. I don’t know for sure but i believe there is some urban renewal about to happen in the area.
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our databaseRodCMember@rodcJoin Date: 2002Post Count: 335
that’s why I said generally not, as I’m sure there are some circumstances (such as yours) where a deduction can be claimed.
Fordlands certainly is a no go area for some managers, there are also some other parts of Rotorua which some managers don’t like either.
Rotorua’s an interesting place there are some really dodgy looking houses right next to quite good ones.