All Topics / Overseas Deals / New Zealand Deals Everywhere

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

    Was just browsing the NZ property websites and noticed a number of good options that might interest forum readers. I always scroll through trademe.co.nz – choose a province, city, prop type and then list them from lowest to highest. Look for multiple props, large blocks (sections), dual income, land options to add value.

    Because the market is in a slight slump compared to Melb, Syd Darwin etc here it's refreshing to spot a large number of potential buys. Stay away from the small towns but look for the major towns (they call them cities) like Napier, New Plymouth, Palmerston North, Hamilton etc.

    Came across a 3 unit buy this morning in Nelson which is a buy and hold option. Seems Ok on the numbers returning near 7% with a $2000 pa positive return. Fully renovated 2 br units for around $200k each renting for $260-$270.
    http://www.trademe.co.nz/Trade-me-property/Residential-property/Houses-for-sale/auction-267217876.htm

    Another in Stokes Valley Wellington for $210k – 3 br house with 1 br bungalow on large block – good dual income in a major city.

    Another resource I use which is a time saver for investors is http://www.propertybillboard.co.nz
    Become a member using the free option and get the new listings emailed to you.

    Hope this helps

    Ian

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

    The only resource to use for investors in NZ just became available. It costs a bit ($70pm Aus) but is the one stop shop for property evaluation. Google IAdvise NZ

    Anyone found the property billboard website useful?

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

    Yes, finally we're starting to see some great positive cashflow deals come to the market in NZ – YAY!!!!

    I'm a property finder in the Hawkes Bay (Napier and Hastings area) and after 3 years of low yields and difficulty getting finance, it is refreshing to be finding good quality +CF deals.  Whilst still few and far between, they are out there, like a dual income (3-bed and 2-bed on 1 title) for $288K with combined rents of $530 a week — that's 9.57% in Napier with over $6K of cashflow a year.

    So Ian, shop carefully – you can do way better than 7% if you know where to look.

    Good shopping,
    Vicky

    Profile photo of Kipper57Kipper57
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    @kipper57
    Join Date: 2006
    Post Count: 252

    Are you going over their Ian?  I guess you have researched the infrastructure etc

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

    Ian, if you get over to NZ and come to the Hawke's Bay, contact me via my website and I'll give you the "grand tour".

    Cheers,
    Vicky

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871
    Playa Chicken wrote:
    I'm a property finder in the Hawkes Bay (Napier and Hastings area) and after 3 years of low yields and difficulty getting finance, it is refreshing to be finding good quality +CF deals.  y

    Hey Vicky,

    So out of interest what are the min finance requirements now in 'unzud' for a loan for Aust residents? ie LVR max etc. Appreciate your feed back on that.
    Thanks

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

    Hi Vicki

    Yes I am going over and if in HB i will contact you for sure. I've also found property returning over 7% but didn't want to list everything here, just the fact that there is opportunity when you look. I did think a fully renovated set of 3 units pulling $800pw was an OK buy and hold though, considering the growth of that little suburb by the beach, if that is the type of investment you specialise in.

    To Wanlad – yes going over again and can I ask what you meant specifically about researching the infrastructure. It's a pretty broad subject.

    For finance, what I have found out is the major banks are asking 30% deposit and will loan to Aussies based on serviceability ( as in Aust. – income, assetts, liabilities etc). They do not take into account Aust property portfolios and loan only on the NZ asset. Non-institutional lenders have better LVR terms so shop around.

    To make matters even easier, I would open a NZ bank account as soon as I land (and probably a good idea to visit the place before you buy, so the suggestion there is a matter of course). Banks like to know you have 'roots" locally in the financial sphere and it also makes clarification of your identity 100 times easier from Aust as you have done it already in NZ.

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

    V8GHIA – Sapphire's post regarding lending in NZ is correct.  Most banks are requiring 30% deposit from Aussies.  Us Kiwis can get away with 20% if we can show good serviceability.  You will need bank accounts set up in NZ for ease of transacting rental income and mortgage payments.  Roost mortgage brokers, who facilitate Kiwibank loans, are required to meet you in person before a mortgage will be given.

    SAPPHIRE – email me (go to my website for details) about your $800/week income 7% deal, with more info, i.e. what suburb, so I can give you informed feedback.  Personally, in the Hawke's Bay, a multi-income 7% yield would need to be in a super good area and in mint condition.

    I prefer to be hitting the 8.5% + for multi properties in either Napier or Hastings.  As an example, I have a 9.57% 2-income property, recently refurbished (3-bed house and separate 2- bed house on one title) returning $530 week coming available late next week.  With a 30% deposit and 7% interest rate mortgage, it is $5000 positive a year on a principal & interest loan and $8000 positive on interest only.

    I look forward to meeting you when you're over this way.

    Cheers,
    Vicky

    Profile photo of wlynchwlynch
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    @wlynch
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    Post Count: 8

    Hi Vicky,

    I’m a NZ’er who’s lived in Oz for 28 years but have two positive investment properties in NZ and would dearly love to buy again but for the life of me I can’t find a bank now that will give me a loan without 30% deposit, NZ’er and all!! I’ve had one property since 2004 and the other since 2007 so have some history, bank accounts, IRD number, tax returns, finance with two different banks, equity the lot!! I’m getting told if it’s an investment property they’ll only lend up to 70% and thats that. I even have an Australian Mortgage Broker who specialises in NZ lending.

    What’s your secret and who are these banks.

    Wendy

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

    Wendy,

    PM me and I'll see if I can help you.

    Vicky

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