Aussie investing in New Zealand

[DPF]

Hi all,
I am considering investing in New Zealand investment properties, in particular, Christchurch.
I have visited recently and am impressed that there is no stamp duty.
For instance, in Victoria--say 5% deposit on $300,000 apartment ($15,000) plus $14,000 stamp duty. =$30,000(1 property)
2 x 10% deposits in Christchurch on 3br rentals.-$25,000 x 2 =$50,000 (2 properties)

I understand that apart from debt reduction payments, losses are quarantined until you make a loss. Still seems worth it though.
Any thoughts or any postings/sites that you could refer me to?

 

[ani]

Hi all,
I am considering investing in New Zealand investment properties, in particular, Christchurch.
I have visited recently and am impressed that there is no stamp duty.
For instance, in Victoria--say 5% deposit on $300,000 apartment ($15,000) plus $14,000 stamp duty. =$30,000(1 property)
2 x 10% deposits in Christchurch on 3br rentals.-$25,000 x 2 =$50,000 (2 properties)

I understand that apart from debt reduction payments, losses are quarantined until you make a loss. Still seems worth it though.
Any thoughts or any postings/sites that you could refer me to?

If you aren't a NZer I'm fairly sure you will need a 20% deposit

 

[DPF]

If you aren't a NZer I'm fairly sure you will need a 20% deposit

I think I have a financier who will do 10% deposit

 

[deanthomas]

Hi DPF,
I'm settling on a property in ChCh in 10days time. Just wondering how you're going to go about collecting your rent. I've had heaps of hassles trying to set up a bank account in Nz. I was advised by Westpac that Australian laws forbade Australians (assuming you are) from opening up bank accounts overseas.
As an expat I've managed to overcome this (at considerable cost mind) by flying there to open one up in person and presenting a 25yr old ird number.
Cheers Dean

 

[DPF]

Thanks Dean.hope i can solve that challenge.
Do you find the absence of stamp duty attractive?
What type of investment property are you into?
Hope it goes well.
Dan.

 

[ozi]

Hi Dan,

Sure not having to pay stamp duty is attractive to investors. It makes cheaper buying, but I wouldn't buy a property just because of this. Look at the big picture. Are you after cashflow or growth? I would first study the market to work out what the prospects are for both these before deciding.

Just wondering how you're going to go about collecting your rent. I've had heaps of hassles trying to set up a bank account in Nz. I was advised by Westpac that Australian laws forbade Australians (assuming you are) from opening up bank accounts overseas.
As an expat I've managed to overcome this (at considerable cost mind) by flying there to open one up in person and presenting a 25yr old ird number.

I opened up a NZ bank account with the ANZ about 2 years ago and it was easy. I couldn't believe how easy. I also sourced finance with the ANZ over there and that was easy too. In some regards easier than here in Australia! 80% LVR is the norm, but I believe with some lenders you can get 90%. I have a great contact at the ANZ who has dealt with many Aussies. Send me a PM if you want contact details.

I have also just discovered a terrific broker who I can happily recommend.

Regards,
Ozi

 

[outbackjack]

Overseas Bank Accounts

Hi there,

I have worked overseas and never had problems opening O/S bank accounts?

Is this just a NZ thing?

 

[DPF]

Ozi,
Thanks for your positive feedback.Have sent PM.
I am hoping to buy 2 x 3br properties in ChCh.Lower end of market.
More interested in CG than c/f because I would like to refinance and buy another one after a year or 2.
just getting started-lots to learn.Likely to have ~$100,000 LOC shortly.
Have a helpful contact at Canturbury Prop Investors Assoc.
Dan.

 

[kingchevy]

I know dunedin fairly well has anyone purchased there seems to be some very cheap house's you can buy over there. I just got back from there a few weeks ago.

 

[ermen]

Hi DPF,
I'm settling on a property in ChCh in 10days time. Just wondering how you're going to go about collecting your rent. I've had heaps of hassles trying to set up a bank account in Nz. I was advised by Westpac that Australian laws forbade Australians (assuming you are) from opening up bank accounts overseas.
As an expat I've managed to overcome this (at considerable cost mind) by flying there to open one up in person and presenting a 25yr old ird number.
Cheers Dean

i opened up one with HSBC Auckland Branch from Australia. Very easy process and they send your statements to your Australian address as well!