Invest in NZ

From: Growing Bigger


Hi all,

Having just found this forum, I think its a great resource.

I want to invest in NZ, but as an aussie, I'm not sure how to go about it.

Can I goto an australian bank for a loan with a NZ security? if not, how can I use NZ banks? will they accept my australian job?

What about accounts? how does the tax work? I pay tax on the money in NZ, and then add it to my australian income?

Thanks for taking the time to help me with this.

Growing_bigger
 
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Reply: 1
From: Ross V


Hi GB,



Probably the easiest place to start is to contact (via e-mail) a mortgage broker in NZ.

They will give you all the requirements and find you the best finance.
A couple of things to be aware of.
as a non citizen you will probably be limited to 65% LVR and interest rates are about 1% higher than here.
As to the tax question I would only suggest you will need a good accountant here and a good account there!

good luck and let us know how you go.

ross-v
 
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Reply: 1.1
From: Mark Brokenshire


Hi GB

I have a property in New Zealand and used a mortgage broker that I found great if you would like his details email me on jmarkb@bigpond.com
 
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Reply: 1.1.1
From: Growing Bigger


Thanks for that mark and rossV.

I guess this q can be extended to all o/s investments. So if anyone cares to share how they have done it from one country to another, I'd be happy.

I understand that if I set up a company with 51% NZ ownership that I can borrow as a native. I have heard that there are solicitors around who will be a owner for your company (with a cost attached) so you can fulfill this. Has anyone here done that? What do you see as the pitfalls?

GB
 
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Reply: 1.1.1.1
From: Duncan M




> I have heard that there are
> solicitors around who will be a owner for your company (with
> a cost attached) so you can fulfill this. Has anyone here
> done that? What do you see as the pitfalls?

Call me a Control Freak, but I wouldnt trust anyone apart from my wife with
a responsibility like that.

Duncan.
 
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Reply: 1.1.1.1.1
From: Tony Dixon


Hi GB,

Can I ask *why* you have this sudden desire to invest in NZ?

cheers, Tony
 
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Reply: 1.1.1.1.1.1
From: Growing Bigger


On 9/24/02 3:45:00 PM, Tony Dixon wrote:

>Can I ask *why* you have this
>sudden desire to invest in NZ?

It's not really sudden, I've been wondering about it for a while. The idea of no stamp duty and no capital gains is very attractive.

The plan is to buy, renovate and sell so I can decrease the debt on some of the places I have here.

But moving money between the two counties has always been my sticking point. When I found the forum, I thought there must be others who have had the same thought, and I could find out how they did it.

Hope this clarifies things for you

GB
 
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Reply: 1.1.1.1.1.1.1
From: Tony Dixon


Hi GB,

The reason I was curious was because an acquaintance has just been to a "guru-of-the-week" seminar who was pushing investments in NZ because of the potential for positive cashflow.

Nothing beats market knowledge though.

>The plan is to buy, renovate and sell so
>I can decrease the debt on some of the
>places I have here.

You should definitely talk to an accountant about this. If you are classified as a trader then there will be NZ GST implications. Being non-resident adds another level on complexity on top of that.


>But moving money between the two
>counties has always been my sticking
>point. When I found the forum, I
>thought there must be others who have
>had the same thought, and I could find
>out how they did it.


I have a LOC account linked to a credit card and I can transfer funds via Internet banking. I can use the credit card to pay for stuff in OZ and transfer funds at the end of the interest-free period.
It's a slow method of transfering money though.

The funny thing is that the NZ IRD allows the LOC to be drawn down for personal use, and it is tax deductible.

Good luck.

cheers, Tony
 
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