Forum Replies Created
Lending value in Tokoroa for non residents is 80%. I have 3 banks that will do this. If purchase price is under $50k then a registered valuation may be needed.
GV is governemnt valuation which is updated every 3 years. Values in the market will vary in comparison as some GV’s could be 6 mths old and another area 2 yrs old. The same area will have the same updated GV but Invercargill may be different to Tokoroa. Updated valuations are done statistically with no inspection of the property so 2 houses in the same street could have the same GV yet one could be rough and the other tidy.
Regards
TerryDean, if you are only looking around $90k purchase I suggest you use your own cash for deposit of 20% being $18k. Sure this may not be tax deductable but $18k at 7.5% = $1350. Say u get a third of this back that is effectively $445per annum. It will then depend how long you hold the property for as against you break cost and break fee what is the best option.You can get your break costs then make the decision.
Regards
TerryFrom my experience in financing people into NZ IP’s most lenders/banks require 20% deposit for non residents. I do have one lender at 10% deposit. I am not aware of Kiwibank offering 5% deposit. They need to use a risk insurance company (eg PMI) at 5% deposit and in general the risk insurer won’t cover non residents. In saying this it is worth a shot with them but don’t make your decisions until you can clarify this with them
Regards
TerrySend me an email outlining your requirement and I can advise you what to do from there
Regards
TerryHi Hirady,
Yes most Austrlian investors get a top up of their own mtg to form the 20% deposit on NZ IP. Show this loan as a seperate loan,(do not add to current loan) and claim the interest back as an expense against the property as purpose of funds to buy IP.
TerryCastleDreamer,
Can get pre approval for purchase within a day or 2 of beings supplied with appropriate documentation. I would need an application, confirmation of income, loan repayment history 6 months and details of where own funds coming from.
Haven’t done family trust but would not forsee problems. Just need Trust deed.
TerryMini, In regards to your questions
Smaller towns – each town is based on its merit-population, proximity to cities, type of industry in town, employment opportunities etc. Some banks just won’t lend but others may cross colateralise security.
Regarding town of 1500 people and 30km from major city you name them and I will find out.
A credit line would be available depending on lender but rememberin NZ floating rate is higher than fixed rate so may not be any advantage.
I think lo docs etc would be a problem as there type of loans are as security lend. Low value properties in small towns are higher risk wkich is reflected in the value to start with and higher rent yield.
Regards
TerryGeronimo,
As soon as you can show 20% in the proeprty will the lender reduce its rate?No this is their standard rates. Some non bank lenders do have fixed rates above banks rates.
Terry
Inner city apartments in Auckland- there is a large number of smaller type apartments coming on to the market. These were for students mainly but overseas student numbers have dropped off and there will be a surplus. Rents have dropped in this area for a 1brm or studio at around $280 pw.
Still not a bad return on purchase price but problem will be filling them. Also off the plan purchases are likely to be too high and realist value will be $20k lower than purchase price. In saying this there appears good demand for quality apartments 2 bedroom plus from owner occupiers. These are still increasing in value but there is a slowing of the market.
Regards
TerryHi Steven, Yes there are rates around at 7.25% or less for 80% LVR. This product is from one lender and that is their rates. It is the only product I know of in NZ for 90%LVR to Australian borrowers.
Regards
TerryAll assets and I should say liabilities as well. Basically to show net worth.
Regards
TerryThanks Stu,
Current interest rates are Floating 7.75%, Fixed 1yr 7.45%, 2yr 7.65%, 3 yr 7.75% 5yr 7.90%. Rates are subject to change. NZ rates in general are a little higher than Aust interest rates. Application fee $500. Lender will access 80% of rental income which is better than usual 75%. Each loan will be on its merit and lender is looking for loans where applicant can show good monthly surplus and reasonable asset position.As suggested by George try his contact. Most NZ lenders will not lend above 80% as the mtg has to be insured with PMI or the like and they have criteria where you have to be a NZ resident to borrow above 80%. Yes it will depend on location and value but also the strength of you own financial position in relation to assets and income.Contact me direct if u want.
I can look at your options. All banks/lenders are a little different in relation to low value properties. What location is it in? Pls email me direct [email protected]
Invercargial seems to be doing well. Rotorua offers good return and some gain, Gisborne is doing really well. Waihi gained 35% last year. Hamilton shows reasonable return and growth and yes there are proerties under $150k.
Cheers Terry
Better to use a NZ lender as more selection in NZ than in Oz. Need 20% of purchase price yourself. This can be cash or borrowed from your own Oz lender. Give me a brief outline of what u want to do plus deatils of properties owned -location, value, mtg amount and rent. Also state your personal income and I can assess your borrowing potential.
My email is
[deleted]
Website is [deleted] if this is what u want.
