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Was looking at Wellington.
A $800k - $1m property have fantastic sea/bay views, 10min drive to the CBD and large land. But in terms of an investment, how easy are they to rent out, and at what sort of returns?
What's your take on the NZ market going forward?
mine are in auckland. Good yeilds. as for Cg, time will tell. And lower price level.
Havnt had a problem finding tenants.
As for a 1 mill prop in wellington, not sure what sort of market there would be for that?
how far into it did you look?
As for take on nz going forward ...... people have to live somewhere
cheers
From my understanding You are earning nz dollars in nz therefore you pay tax on it in nz as that is where the income is derived.
You also need to declare it in your aus return.
The double tax agreement means that aus will give you tax credits for the tax already paid in nz so that you dont pay tax twice.
You will be using the nz depreciation system not the aus and in nz there is no depreciation on the building anymore.
Hope this helps
P.s you can get the same returns in aus if thats the only reason to invest there?
The no stamp duty bit is handy though.
Cheers
Hi Blair 07,
the likelihood is for NZD to appreciate against AUD. The reason being the AUD rallied hard & sharp against USD while the NZD was much slower.
That's my 2 cents worth.
Another reason is the opening gap between Oz and NZ interest rates. The higher the rate, the likelihood is the higher the currency. Australia doen't look likely to increase rates while NZ has already started on the higher rate track.
Getting funding in NZ is a headache & much more likely why we don't choose to invest there. The LVR is a joke.
KY
We too have been looking into an investment property and NZ was one of our options.
We personally love NZ, especially the south island and it is quite possible we may even move there on a permanent basis within the next 5-10 years, if not earlier.
As a result and with that in mind, we were thinking of buying something in the vicinity of $800k (AUD), use it as a rental or a holiday let, then when we are ready move into it.
What do you people with investment properties think of using a property as a holiday let rather than a long term rental?
We are looking at doing this most probably in Dunedin. Queenstown is an option, but probably unlikely since it would be difficult for us to find a job there when we move there permanently.
Our other option is buying something down south of Sydney in the Kiama area with the short and the long term plan being the same as explained above.
What do you guy think would be a wiser and financially more beneficial move?