Anyone considering an IP in Invercargill, NZ?

Ajax

Ajax

I keep watching the AUD/NZ exchange rate...just recently AUD buys more than NZ$1.25.

www.oanda.com

Selling 1.00000 AUD you get 1.25644 NZD
Buying 1.00000 AUD you pay 1.25790 NZD

I am on the mailing list from an agent in Invercargill-as I'm sure a few others here are.

http://www.invercargillproperty.co.nz/

For under $NZ200k you can buy a fairly good rental property.

My tax accountant grimaced when I asked how would he handle an Australian tax return with credits for NZ tax paid (however it works-I wanted to leave the advice to him).

Thinking about something like:-

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=533

or

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=692

or for just under NZ$700k something like this:-

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=519
 
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**** end of the world.

The first one is in the more dodgy part of town (according to locals Georgetown is full of mongrel mob etc). I thought it was very tame.

There's a uni in Invercargill so there's a student population. You might be able to split some places up into student accom. If you do this make sure you're aware of the council's heating requirements.
 
One of my very good friends is New Zealander. She used to tell me there was no capital gains tax in NZ because there is no capital gains. I'm sure that was a huge generalisation and may no longer be the case.

Out of curiosity and assuming you are an Australian, do you care to share the reasons why you are looking to buy in NZ? I haven't invested overseas so I'm interested in other people's choices of countries to invest.

Thanks!
 
Thanks for the reply Felixter.

Jigglypuff,

am not that serious about NZ. I got all enthusiastic a few years back and made a few enquiries was about to fly to Invercargill and decided not to go ahead. Hence I still reeive emails.

I just think that maybe Oz may be a bit over-priced and I watch the AUD/NZ exchange rate which is the most favourable it has been for some time.

At least the yields are there on some properties.


Ajax
 
jigglypuff said:
One of my very good friends is New Zealander. She used to tell me there was no capital gains tax in NZ because there is no capital gains. I'm sure that was a huge generalisation and may no longer be the case.

Out of curiosity and assuming you are an Australian, do you care to share the reasons why you are looking to buy in NZ? I haven't invested overseas so I'm interested in other people's choices of countries to invest.

Thanks!
Click to expand...
There's def capital gains in NZ. My understanding is they have had 2 booms in the last decade (can anyone confirm or deny this?).

I was in Inverarseill 5 or 6 years ago and apart from Enter Sandman getting played every hour on local radio, those houses linked would have been a fair bit cheaper.
 
Ajax said:
I keep watching the AUD/NZ exchange rate...just recently AUD buys more than NZ$1.25.

www.oanda.com

Selling 1.00000 AUD you get 1.25644 NZD
Buying 1.00000 AUD you pay 1.25790 NZD

I am on the mailing list from an agent in Invercargill-as I'm sure a few others here are.

http://www.invercargillproperty.co.nz/

For under $NZ200k you can buy a fairly good rental property.

My tax accountant grimaced when I asked how would he handle an Australian tax return with credits for NZ tax paid (however it works-I wanted to leave the advice to him).

Thinking about something like:-

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=533

or

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=692

or for just under NZ$700k something like this:-

http://www.invercargillproperty.co.nz/index.php?pageLoad=22&pact=dp&propertyId=519
Click to expand...

check actual rates...your actual rates are not 100% correct if you send funds to NZ...

If you ever want to send funds use: www.ozforex.com.au

best by far///forget all the banks, they will rip you blind with currency exchanges.
 
My understanding is that CGT is payable by foreign investors but not by Kiwis. However there are a lot of changes to property law in the pipeline, and they may have become concrete by now.

cheers
 
Hi,

I bought in Invercargill 5 years ago and the current tenant has been in the property for the past 15 years! There definitely is a good rental market there and the Uni is a positive for the city. Not sure about it going through two booms but it sure did have at least one big boom!

Obtaining finance in NZ isn't too difficult for us Aussies. I actually found it easier getting finance in NZ than here in Aus, although not sure if this has changed. There is no stamp duty and CGT in NZ, however if you do sell you will pay CGT here in Aus. That is my understanding.

Not sure what the market is doing right now or where it is headed, but Invercargill still remains one of the more affordable places to buy in NZ and rental yields are still decent. However having said that, I am considering selling up and re-investing here in Aus.

Cheers,
Ozi
 
Its a reeeeeeeeealllllly cold place so make sure you buy a house with insulation so your tenants dont feeze to death before they pay their rent :p
 
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