Hi there, we own a house in wa, and have about $40,000 equity in it. I was wondering if we can use this equity as the deposit on an investment property in New Zealand?
We are with NAB and cant with them, but do any banks let you do this?
THanks heaps
I think it is going to be hard. I don't know any bank that will lend for NZ. I think Pioneer Mortgages used to, but probably not anymore.
What you could do is to get an increase on your loan and use the cash – but did you realise that even though you have this equity, you could only use up to 90% to 95% of it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Firstmac still have their Trans Tasmin loan and as Terry mentioned Pioneer are ok with this.
There are a couple more so you could use a mix of equity a new borrowing to get you there.
Thats what we usually do for our clients wanting to buy across the ditch.
Richard Taylor | Australia's leading private lender
Have a chat to Kris at Property Financial Solutions in Auckland and see what bright ideas he has for you – he's very innovative and has a team based in both NZ and Australia so may be able to sort out a way for you to release your equity …. http://www.propertyfs.co.nz/
Cheers,
VickyI just spoke to Kris and he is amazing!!! THank you so much Vicky, i understand so much more about investing than i did before!!!
My pleasure!! I'm delighted to hear you've had good learnings.
Vicky
I dont like it when people try and second guess the market.
But having been in NZ 4 times in the past 3 years its market is so over priced it is not funny and its economy is presently tanking.
NZ wages are significantly lower then Oz and the domestic RE purchasers are almost priced out of the market from the overseas investors over the last few years. NZ wages are significantly lower then OZ so high yeilds are unsustainable.Interest rates in NZ are much higher and if you use the Aus equity you are playing a Forex gamble on that $40K
Im not saying dont do it and I have no doubt their is still some small pockets where value exists. But tread carefully and consider the overall market.
After reading the [revious comments I believe another question to consider is that if you looking at buying further investments in the future besides this one in New Zealand. When you borrow in the future can you legitimately declare the rental income for this overseas property. Of course there are ways of doing this with low document loans but the rules for these are tightening up considerably.
My suggestion is to consider what impact this NZ purchase may have on the growth of your property portfolio over the medium to long term. This is the same question I pose to any of my clients who are looking to invest in properties outside Australia.
It then begs the question about how clearly do you have a clearly defined property investment plan.
Ian Franklin
http://www.investmentloanoptions.com.au
My pleasure!! 
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