All Topics / Overseas Deals / New Zealand Investment

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  • Profile photo of ekody001ekody001
    Member
    @ekody001
    Join Date: 2009
    Post Count: 2

    Hi Guys

    Im wondering if anyone has had any experience with investing in New Zealand. I have read that there is no stamp duty and capital gains to be paid on investment properties and depreciation is 4% rather than 2.5% here in Australia. Im not sure how the economy is in New Zealand and I dont think values would rise as they do in Australia but it is very interesting. I have found 2 proeprties which are positive cash flow but I feel as though it may be a risky investment beacuse its located in New Zealand. Ant thoughts would be appreciated.

    Profile photo of Playa ChickenPlaya Chicken
    Member
    @playa-chicken
    Join Date: 2004
    Post Count: 128

    You probably won't get the growth you'd get in Aussie cities that are going off at the moment (Sydney), but at the moment NZ is a fantastic place to buy cashflow – which you may struggle to get in any of the big Ozzie cities.

    It really depends what your strategy is.  Are you wanting capital growth?  or  cashflow?  There is no stamp duty and no capital gains as yet in NZ.

    Provided you're buying good quality properties in desirable cities, there shouldn't be a problem.  You will need a good property manager though.  I recommend staying away from the really small and/or lower socio towns, even though you can get better yields there, because they will have higher tenant turnover and generaly be harder to keep tenanted.

    Good luck in your hunt!
    Vicky

    Profile photo of jaffafaljaffafal
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    @jaffafal
    Join Date: 2004
    Post Count: 17

    Hello,

    Yes I’d agree with Vicky the key is the right city if investing there for a couple of years. I brought in Rotorua in 2008 for and it’s currently just paying itself off. the New Zealand economy isn’t great, and the good news about that is our the aussie dollar will buy you more. And their interest rate haven’t risen, very good news if you have a loan over there.
    Steve Mcknight in his latest CD Masterstarter series talks of in the early 2000, buying over 30+ houses at once in Tokoroa and then selling then not too long afterwoods and making a large lump sum gain.

    Also you need a team over there a reliable property manager, perhaps a accountant and a mortgage broker, a lawyer. this will give you peace of mind that it’s being looked after, after all a property is a pricey asset. And peace of mind is priceless. :)

    Profile photo of Playa ChickenPlaya Chicken
    Member
    @playa-chicken
    Join Date: 2004
    Post Count: 128

    Ah yes, Tokoroa!!   Tok was good to Steve in the early 2000s, he had so many houses there at one stage — all painted the same colour — that you could drive around Tok and know exactly which ones he owned!!

    Personally I would not be buying in Tok these days due to the GFC, and especially if you're a remote landlord, you'll be wanting a more stable location with better upside growth.

    There is talk of interest rates rising after the budget in May, so if you're planning on buying here in NZ and want to lock in a good long term low rate, do it before the middle of the year.  I can also recommend getting yourself pre-financed as that will help with negotiations if you know what you can fund and are able to make good solid cash offers.

    Vicky

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203

    Just bought property in NZ – there are some great deals there now contrary to what people may be telling you. The NZ economy hasnt been hit as hard as it normally does during downturns and some areas are showing growth equal to many in Australia. Most importantly there are some seriously motivated sellers.

    Am about to buy again and have a $80k profit deal on the table if you are interested.

    [email protected]

    Ian

    Profile photo of TCLinvestmentsTCLinvestments
    Participant
    @tclinvestments
    Join Date: 2009
    Post Count: 84

    Hello

    I think i need to turn to NZ for investments as well. I am finding it increasingly difficult to find positive CF properties even in rural areas of NSW.

    Could someone please advise me of what to do to get started, i mean, Do i have to set up a LLC, engage in a lawyer, accountant, mortgage broker and property manager before i buy, I want to know all the ins and outs before i even step my foot into NZ to start looking, I am mainly looking for positive cashflow.
    Please email if you can help.
    [email protected]

    Thanks.

    Profile photo of Playa ChickenPlaya Chicken
    Member
    @playa-chicken
    Join Date: 2004
    Post Count: 128

    TCL, you still wanting to get into investing in NZ?

    We're seeing some absoultely amazing positive cashflow deals here at the moment.  I have got two under contract at the moment, one in Napier giving an 11% yield and another in Flaxmere at 11.96%.  These yields are unheard of in the Hawke's Bay since the early 2000's.

    Contact me if you're interested!

    Cheers,
    Vicky

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    I still like main cities. Christchurch has aways been a faverote of mine

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
    Email Me | Phone Me

    We have just launched a new website join our membership today

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