Hi Guys
Sorry I missed you when you were over here Min. Have the car back now.
A couple of points:
1. NZ’s population is increasing. It is now over 4m and increasing. However the increase is mainly coming in the greater Auckland area. Some small areas of the country are also experiencing pop increasing (Tauranga).
However some of the rural areas are going to experience some big drops over the next 10 yrs.2. The number of people who are renting instead of buying is also increasing. I think that about 32% of the pop now rent instead of own. The reasons why I am not sure of.
3. Comdom it is Invercargill, and the Mayor is Tim Shadbolt nationally renown as the mayor who used to tow a concrete mixer behind the mayoral car. Certainly has done a lot for Invercargill though.
4. The FHG does not exist in NZ. However the Govt has set up a system where low income people may be able to get a loan from Kiwi Bank up to a certain amount. The other banks are not too happy about it.
5. Lots of Aussies have bought residential property in NZ. This is not a problem. However big monied people from the USA in particular have bought seaside property that has views of the sea etc. As one said the sheep don’t care about the view. This land is being devloped into exclusive blocks and onselling to other rich Americans.
6. There are lots of low priced properties listed around the country but most if not all are to be found in small to very small towns. But there are people in all these towns who want to live there regardless.
7. LIM Reports – Land Information Memorandum Reports. Info held by the council that will be supplied for a charge.
Details of land you plan to buy can be obtained from this site. http://www.linz.govt.nz/rcs/linz/pub/web/root/howdoi/howdoi/index.jsp#buyingRegards
> Dear Mini,
> Thanks for your comprehensive answer to my question :o)) I know this would
> have been answered elsewhere and I could do an archive check, but… does one
> get the same tax benefits as one might in Australia if one buys in NZ?yes as far as I know. haven’t done my first tax return there yet but i think depreciation is 4 percent on the building. I think that’s better than here?
You would do a tax return in NZ as a non-resident and then your NZ accountant would send that to your Aus accountant and it would come in as tax-paid dollars or input credits or something. i think 2 trips a year to NZ are tax deductible here also if you have property there.>and
> does one have to pay CGT etc upon the selling of IP’s in NZ?
i think that if you hold for one year or more and your intention was to buy and hold then no CGT. There was a document on the net
http://www.investnewzealand.govt.nz/common/files/50%20Things.pdf
50 reasons to invest in NZ.> kay henry
> Thankyou for that, i am going in NZ in june to visit friends in invacargal (i
> think thats how you spell it) for two weeks and hoping to purchase sight seen.
> I prefer to buy that way as i have a friend whom bought sight unseen and had
> $8000 to spend including his own work just to make it liveable.bummer. i mean, i can relate, because i spent 10K on two of my properties – however i knew that beforehand. sounds like your friend didn’t do due diligence. I get builder’s reports as well as photos, rental assessment, LIm report and the offer is accepted subject to everything being OK. So i know EXACTLY what i am buying, at least from a cost point of view. Harder to do due diligence on the street, good area or bad, neighbours, etc? but it can be done. just make a lot of calls and talk to people. I chose to buy cheap and renovate because to get a house with nothing to do i would have to have spent double. it was a way of maximising my cash by adding a bit of work.
>I know the
> population has not increased very much at all in NZ and thats why i will be
> cautious.no true – AFAIK immigration grows every year and record numbers of people are NOT leaving NZ at the moment. Significant differences. 37700 more people in 2001 than in 2000. that’s growth of around 1 percent PA.
some info about houses
http://www.real-estate-nz.com/home-styles.cfm>I also know that a large part of the country is bought up by
> overseas investors and tht they are starting to clamp down on this problem.
http://www.scoop.co.nz/mason/stories/PA0311/S00190.htm
http://www.stuff.co.nz/stuff/0,2106,2727981a1861,00.htmlat the moment, there are restrictions on buying over 10 million worth of property and lifestyle blocks, beachfront etc
http://www.oic.govt.nz/faq.htm
> These are not bad things but i will step in lightly.I have not been their but
> what i have heard is all good, hope its all good for me.
> Dom
well if that’s all true, get in now!!> PS I also have arthritis all over
>
> Mini,
> Another question for you :o) If the costs of the houses are so low, and the
> tenants are paying around 20% rent, why don’t they buy it themselves? A loan
> for them, over 25-30 years, would see them paying similar rental as mortgage
> repayments.i don’t know why they don’t. Certainly, in a town where houses are 20K, and even if the average wage is 13.5K per year, that makes houses more affordable than here in Aus. i don’t know why a lot of people want to rent, not own. I’ve never owned a PPOR myself, (only IPS) and I only know why *I* still rent – because a house where i want to live worth 800K in sydney only costs me 400 bucks a week to rent and it would cost me 1200 per week to buy (interest only) and I’d need a huge wad of cash to plop in like 100K. i’d rather buy five IPs with the money that would only get me a deposit on this Sydney house, which would return me $500 bucks per week, so i could live ‘rent free plus spending money’, if you like.
hey, that sounds a lot like what i’m doing right now…hehe
i’m not saying that NZ is the only place to invest. It’s just a place i found with houses at the right price, with the right yields, and lots of capital gains legs left.
And there are still plenty of deals left so get in now!
Hi miniMogul
Thanks for the e-mail on arthritis much appreciated i have been to a naturepath with slight improvements .
On the subject i was reffering to NZ population the time frame i was speaking of was the last 30 years Population growth to get an average.And yes you are right my friend did not take any due dilligence which was an extremely cost saving lesson for me as i saw it unfold over a period of 3 months.Because i worked with him i asked all the details as he was repairing the property. Before he purchased the property i told him that i never bought sight unseen and prefered to spend a little bit of money travelling to see the property before i purchased it. But he thought he could trust the RE and went ahead with the purchase.I dont think it matters where you purchase as long as you research, research and more research you talk you ask and you gain experience and most importantly take your time because no matter what the RE says their is always an other bargain around the corner.
I saw this morning on the news about how auction popularity has fallen 40% that means only one thing to me cash youslf up for some bargains !!!
Dom[
]Yes comdom,
I have purchased two properties in the last 3 months sight unseen. The net makes it possible to do so- buuuut, you have to do a bloody lot of research to make sure you know you have made a wise choice. Photos aren;t enough. I would imagine this is particularly the case with older properties, which are the ones people get pozz cash flow from. Is it worth the extra ten bucks a week to have to restump a house? I doubt it.
kay henry
]
The topic ‘What’s blown up always goes bang’ is closed to new replies.
