Forums / Property Investing / Help Needed! / Invest in New Zealand – Beginers

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of NipuniNipuni
    Participant
    @nipuni
    Join Date: 2017
    Post Count: 2

    Hi,

    Me and my husband hope to buy an investment property in New Zealand. We live in Sydney and working full time. We thought contacting a good buyers agent in New Zealand is a good idea. (We already in the process of buying a property in Brisbane via a buyers agent and happy with their service. But they don’t provide any service for New Zealand properties.)
    1. Does anyone has recommendations for good buyers agents and their charges from New Zealand.
    2. I also need to know is it possible to find properties under 300k in New Zealand with positive cash flow. (I search for properties but do not have any market statistics/knowledge in the area)

    Appreciate any ideas/recommendation.

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Good Day Nipuni,

    this is exactly what I do (plus a few other things)

    I can find you a positive property and very likely organise everything and help with a large aspect of the due diligence.

    if you would like to have a chat and I can answer any questions, text me on 0431376130 to organise a time.

    Kind regards

    Jaxon Avery

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 175

    Hi Jaxon

    You cover New Zealand too?

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Not majorly, have studied it a fair bit, understanding how to source deals is similar once you understand what your looking for

    Profile photo of KaviKavi
    Participant
    @kavi
    Join Date: 2014
    Post Count: 18

    I lived in Wellington New Zealand for around 12 years and what I can say on that experience.
    1. Its very hard to find a property even with 2 Bed for around 300 K in major cities like Auckland or Wellington. But definitely available in bit far away from major cities . But not sure how the rental demand will be for those properties
    2. Most of the properties in New Zealand will be good cash positive compare to here but capital gain will not be so good as here.(still you will get a considerable gain if you buy from one of a major city.
    3. I personally did a mistake by selling my 3 Bed property when I moved here. I bought it for 390 K and the rent per week was 470 per week by then. Now after near 4 years those properties are worth around 490 K. Even its not a big gain still I believe its ok as the property could even make a small profit every month.

    Profile photo of NipuniNipuni
    Participant
    @nipuni
    Join Date: 2017
    Post Count: 2

    Hi all,

    Thanks for the replies. Appreciate your input. The main reason behind us to invest in New Zeland was that I have heard there are positively geared properties for very law prices. But after some research i could see it is not the case in most of the major cities as Kavi described. Given that there are less capital gain, we decided to continue in Brisbane for the moment, which we think is a better place with good capital gain and it is also possible to find positively geared properties.

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    I live close to brisbane but find better deals outer state.

    happy to chat as I stated.

    either way wish you all the best

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 175

    Hi all,
    Thanks for the replies. Appreciate your input. The main reason behind us to invest in New Zeland was that I have heard there are positively geared properties for very law prices. But after some research i could see it is not the case in most of the major cities as Kavi described. Given that there are less capital gain, we decided to continue in Brisbane for the moment, which we think is a better place with good capital gain and it is also possible to find positively geared properties.

    My opinion on that one is:

    If there are positively geared properties to be snatched up, they would have been snatched up already.

    I would imagine if an area where properties on the market (not off market) can be bought for positive cash flow, then it’d immediately become an investor hotspot and those positively geared properties would run out very quickly. (everybody knows about them and everybody rushes in to buy them… it is a cash of even monkeys can make money)

    So no… I believe positively geared properties are always “hidden” rather than “on the market”, in the form of “buy below market value”. When you “buy below market value”, you already get an “innate capital growth”.

    eg: Market value for properties in Suburb A is 500K and you buy a property for 350K, then that’s already 150k “built-in” capital growth for you, so you don’t need to “wait for a few years for capital go grow”. Coupled with you are getting a loan based on 350k rather than 500k, but you are collecting rent on 500K basis, that’s positive cash flow for you.

    Profile photo of Robert KingRobert King
    Participant
    @robertking
    Join Date: 2016
    Post Count: 13

    Additional point, to mortgage a property a lender strongly prefers that the security(house) is located in the same country as the mortgage(loan). Meaning, to invest in NZ you have to borrow the money from a NZ bank(unless you have 100% cash purchase). Lenders in NZ require a 40% deposit if you are buying for investment purposes. This is the same regardless of whether you are a citizen or a foreign investor. This requirement has been brought in a while ago to slow/stop speculation and allow more first home buyers an opportunity to enter the market. The 40% deposit requirement stopped me investing back in my homeland.(NZ)

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