Forum Replies Created
Hi Alexmmc
Banks in NZ do allow you to take out ‘top up’ loans or similar to access the equity in your NZ investments.
I just did this with two properties – and only one week after settling them at finance provided on contract price, i took out a top up loan to access the extra equity in them at valuation figures.
No different to here in Australia – in fact, quicker, easier and simpler!!!
Cheers
CDCastleDreamer
NZ Investor and Property SpotterI am with Del and Westan on this one – there are better deals out there!
CastleDreamer
NZ Investor and Property SpotterMasteraccountants is a member of this forum… NZ Accountant based in Auckland.
does some work for several forum members.
Cheers
CDCastleDreamer
NZ Investor and Property SpotterHi jcls79
there is no real ‘norm’ for how long a contract will be from signing to settlement. you need sufficient time to investigate the deal (your due diligence) and the clauses to allow you to do that, then you go unconditional. how long from unconditional to settlement can depend on as many things as it does here – does the vendor need money urgently? is the end of the fin year coming up? etc etc.
if the property is vacant, absolutely no reason at all why you could/would not ask for early access (generally once you have gone unconditional and paid your deposit) to do the refurbishment.
One thing to think about – insurance of the property whilst you are in there – me, i like to know its covered in case something happened and the owner lays blame at your feet!!!Yep Kiwis open to creative terms such as this – this is pretty standard on nearly all of the agreements we do ourselves.
Cheers
CDCastleDreamer
NZ Investor and Property SpotterHI direct,
a search will cover most of this information but a basic summary is as follows;
1. no capital gains tax in certain cases in NZ, but may end up paying it here in Australia on your foreing (NZ) sourced income.
2. no stamp duties
3. conveyancing around 500-1200 bucks
4. building inspections around 150-450 bucks
5. you pay the valuer direct 300-450 depending on type of property
6. bank fees – application fees as varied as here 0-600 bucks
7. depreciation schedules if you want them…
8. Aussie entry in NZ property market rather open, no major obstacles to investing.Cheers
CDCastleDreamer
NZ Investor and Property SpotterHi Kerwyn
you can try the insurance quote offered by your financier as one possibility.the other is to use an insurance broker such as the one I use: Wanganui Insurance Brokers – they generally use VeroInsurance which has a landlord component.
just a couple more options to play with.
Cheers
CastleDreamer
NZ Investor and Property SpotterHi Turboz!!
I have been using Bob at the Professionals since I purchased in Invercargill. I have also heard good things about Harcourts as well, and deal with an agent there too. Sorry for delay in replyin!!!CastleDreamer
NZ Investor and Property SpotterHi Sen,
welcome to the forum.
there is a wealth of information available using the search function on this board – many people dont like to give away their hard earned knowledge by simply telling others where to follow to buy!!! but you can find some good info if you have a search around.
Cheers
CDCastleDreamer
NZ Investor and Property SpotterHi Sparticus10,
How does the independent rental manager get in? In my contracts I put an access clause that requires the vendor to agree to me letting my agents through the property. that way it is all agreed up front.Cheers
CDCastleDreamer
NZ Investor and Property SpotterHi Mini and all,
yep, several lenders I either use or know of are now offering normal lending criteria in Tok – 80% same as anywhere else.
I have been getting 80% lend in Tok since April last year….. its only opinion one way or the other whether Tok is a good or bad place to invest. I have done very well there thankyou!!Hi Muppet, good to see you’ve settled in so well. have been hearing how busy you are with things!!!! Your name is known internationally!!!!!
Cheers all
CDCastleDreamer
NZ Investor and Property SpotterHi Nobleone,
the second LOC option is available with my anz lender. no cross col, no breaking the loan figures….
CheersCastleDreamer
NZ Investor and Property SpotterHi Nobleone,
there are few options you could discuss with your financier.
breaking a fixed loan should not incur any charges if the current market interest rate is higher than you fixed at – the bank will be happy to break your loan because they can lend the money out to someone else at the higher rate!
refinancing does not need to alter the current loan – add a second LOC or loan against the individual property – no reason to xcol either.
sell the property and take the lot less exit costs and taxes.
that’s just three ways of getting the money that I can think of – there may well be another one…
LRCastleDreamer
NZ Investor and Property SpotterHi Gamerz,
technically there is stamp duty in NZ (at least it is provided for under their legislation or whatever). It is simply that the government has set it at 0%!!! so its the best stamp duty you will ever pay!!!
Cheers
CDCastleDreamer
NZ Investor and Property SpotterHI Brisbane 04.
Thanks for the light hearted look at the Kiwi accent!!! I actually find it really funny now when I go to NZ, because I am the one with the Aussie Accent that gets a caning for the way I sound!! – and a lot of my family are Kiwis as well! although I am Aussie through and through!!
Cheers
CdCastleDreamer
NZ Investor and Property SpotterHi Icerip
just to clarify some of the comments here. You don’t need to lend from a lender that is represented on both sides of the tasman. You can lend from the “Bank of New Zealand Sheep Shearers” (example!!!) if that bank will lend to you!!!
Secondly, setting up a trust in NZ does not mean that you don’t pay tax on the income!!!!
If you want serious advice about trusts etc, I agree with shaztaz, Chris Raynal of Master Accountants is an NZ accountant who knows accounting from both Aussie and Kiwi perspective. Get your advice re trusts, tax etc from the right people.. plenty of us on the forum will have different stories to you and what we do won’t suit you, or may not even be described properly on the forum either.
Cheers
CDCastleDreamer
NZ Investor and Property SpotterWestan Westan Westan, when you start raving about the weather in Invercargill I KNOW you are definitely getting to little sunshine down that way!!!! We are having 36 odd degrees and truckloads of humidity up Brissy way – was 39 on neighbours thermometer day before yesterday….. I would love 31 and dry!!! rather than the steam bath it feels like up here at the moment!!!
CastleDreamer
NZ Investor and Property SpotterHi Joe!
Congrats on the first purchase – finding the deals is getting harder and harder, so well done on the timing – sometimes that is all it takes – being ready and then just timing it right!! I hope it all turns out fine – building report comes through ok and rental appraisals stack up.
Great news for you!CastleDreamer
NZ Investor and Property SpotterTorachan, like Westan said why don’t you start a fresh post and the rest of us will respond to your comments. Although I think Mini sums it up succinctly.
Kerwyn, I agree in some ways about due diligence. I have had to let a deal go previously because the vendor wanted a cash clause (and it wasn’t even a real cash clause it was a “if I get a better offer I will take it” clause!). I wasn’t prepared to do investigation with a 3 day cash clause. Maybe with a five day clause if I was preapproved and knew the area and had a good team of builder, valuer etc. but cash clauses don’t make it easy for the buyer that’s for sure..
CastleDreamer
NZ Investor and Property SpotterHi there,
if you have not dealt with the solicitor before, I strongly recommend that you actually phone them and introduce yourself. It might seem oldfashioned, but when your email doesn’t get through, or they receive fifty emails that day, you might not be recognised or stand out that well. Establishing a good relationship verbally is important at the outset in my opinion when establishing your team on the ground.
cheersCastleDreamer
NZ Investor and Property SpotterHey there, sure, rents have been a little thin on the ground in Invercargill recently, but if you’ve got property on the south side then you should be happily looking forward to the freezer works opening shortly a couple of K’s out of town southside on the way to Bluff!!! Six months time and all should be looking pretty fine in my opinion!
CastleDreamer
NZ Investor and Property Spotter
