I know that NZ doesnt have stamp duty, so what other expenses (or charges) would an australian investor face in buy and then renting out a property in NZ
ThanksHi Zippy
You would need finance for converyancing, LIM, building inspection (if you choose to do one), plus have building and landlords insurance organised for when you take ownership(you will require proof of this for you bank) and of course your deposit.
Tamara
Hi Tamara and Zippy
Some costs
conveyancing allow 1,000
Builder 300 – get the builder to check the LIM
so its not that different from oz
regards westanPMJI, but I also have a question regarding costs in NZ.
What’s the situation with buying and renting property in relation to GST?
Looking on property Websites, I’ve seen some prices stated as $X plus GST, while most just have the price. Is there GST on all house sales or only on some, and why would some be advertised as “plus GST”?
Likewise with rent. Is there GST on rent? If so, and I’m told what a place is currently being rented for, would that be before or after GST has been taken off?
Thanks.
GP
Hi Greatpig
Residential property and rents for same are excluded from GST.
Therefore when you buy a house or unit for rent you pay no GST and pay no GST on rents received.
However commercial is different.
Regards
Muppet,
Residential property and rents for same are excluded from GSTThanks for the info.
Looking back on the Website, I see the ones that indicate +GST seem to be all vacant land, some of it described as rural with grazing, so I guess that’s classed as commercial.
GP
A great thread as Im looking to invest on NZ shores before too long. Thanks guys, again this forum proves its worth for regular investors like me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
thank you all
this has been a lot of help, hopefully now I might be able to convince my wife that it is not that scary
ZippyThe following is an excerpt from our client mail-out (3800 words in total) – let me know if you want the whole thing. No hotmail addresses though as they are a pain and always bounce.)
How much does due diligence cost? What other costs are involved?
LIM reports are around $130- 150 NZD from the local council.
Building reports (pre-purchase inspections) are usually between $150-550 NZD.
Lawyer for conveyancing of property is around $500-1000
Insurance is usually around $200-400 p.a. – you should organise this to start on settlement day in NZ (‘contract date’ in Australia). We would be happy to hook you up with an insurance broker.
Cost to connect electricity if required, i.e. for maintenance or tradespeople – approx. $120
Rates are usually $450-$1600 pa., it depends on town.
Property management fees: 8-10 percent (full service.)
Tradesmen: Builders $25-35 per hour
Handyman/woman $15-20 per hour
Labourer $10-15 per hourcheers-
Minijoy to the world
The following is an excerpt from our client mail-out (3800 words in total) – let me know if you want the whole thing. No hotmail addresses though as they are a pain and always bounce.)
How much does due diligence cost? What other costs are involved?
LIM reports are around $130- 150 NZD from the local council.
Building reports (pre-purchase inspections) are usually between $150-550 NZD.
Lawyer for conveyancing of property is around $500-1000
Insurance is usually around $200-400 p.a. – you should organise this to start on settlement day in NZ (‘contract date’ in Australia). We would be happy to hook you up with an insurance broker.
Cost to connect electricity if required, i.e. for maintenance or tradespeople – approx. $120
Rates are usually $450-$1600 pa., it depends on town.
Property management fees: 8-10 percent (full service.)
Tradesmen: Builders $25-35 per hour
Handyman/woman $15-20 per hour
Labourer $10-15 per hourcheers-
Minijoy to the world
>>Tradesmen: Builders $25-35 per hour
Handyman/woman $15-20 per hour
Labourer $10-15 per hour<<Sheez! Tradies are cheap!
What is the cost of living like compared to Oz, Mini?
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