kiwi property investing

I remember seeing some posts that finance isn’t so easy to obtain in New Zealand.

Can anyone throw some light on this ?

Pisces133

hi there,

benefits – higher yields and cheaper prices
often regional towns are much less remote than their Australia counterparts, so more accessible beause NZ is more compact

pitfalls -may be harder to get to know the market.
other practical issues of living further away from IP (though bizarrely, might and up being closer than an Australian regional IP

tax returns in two countries and accountants in both who can communicate

trickier to get finance perhaps as a non-resident.

I don’t have any finance yet but from people i know, the ones who have found it easiest is those who had finance sorted out here in advance and went to NZ as cash buyers.

Others I know have found it relatively easy to get finance in NZ, either through a broker or direct with banks that don’t use brokers i.e. ANZ, Kiwibank, BNZ

cheers-
Mini

Hi Westan,
Great to see you back in the forum.[] It’s also good to hear that things are working out well for you. Sounds like a good pick up on the flats.
Cheers,
Sue []

“Be careful not to step on the flowers when you’re reaching for the stars”

Hi Deano

Welcome to the forum.

Have you researched properties available on http://www.realenz.co.nz which lists most properties available in NZ?
From this web site you will find the individual RE agents web sites and phone numbers. Contact them to find out more about the properties and the district they are in.

Get yourself a book with all the roadmaps of the cities and towns in the South Island.(Try Dimocks)

From The RE agents get contact numbers for Property Managers in the areas that you are interested in. Contact them about specific areas and how easy it is to rent and what the average rents are.

Also check out http://www.minhousing.govt.nz which lists the ave rents over the last six months in all areas of NZ from bonds received by the Tenancy Tribunal.

Expect to have a large phone bill.

Regards

hi all

deano i was in Dunedin last week, rents are increasing again this year, Dunedin has a population of 100,000 plus 25,000 students. i was talking with my rental manager in Dunedin this morning (my tenant has moved out). she said the demand has been quieter this year for student rental for some unknown reason??? the school year for Otago Uni doesn’t start till late feb.

pieces i think if people hunt around they will easily find finance in NZ, however if you approach banks in Oz then it may be difficult. I’ve found ANZ here (in NZ) excellent so far.

mini are you heading to christchurch on your travels? i might be up that way if you have a few hours free if you have time to catch up?

regards westan

WELLINGTON PRIME AREA INVESTMENT OPPORTUNITY – 8% NET YIELD G’TEED FOR FOUR YEARS
I am selling several (up to seven in total) four star one bedroom and two bedroom off-plan serviced flats in a new development in Bolton Street, Wellington (prime area near the Parliament Building, various ministries and government institutions, 15 min. walk from the rugby stadium). Completion is in November 2004, deposit is 10%. The serviced flats will be managed by an onsite experienced operator who will let them like a hotel bedroom. The occupancy rate in that market in Wellington is in the region of 75%. The operator of the development guarantees a net rental income of NZD 18,912.50 for the one beds and NZD 28,262.50 for FOUR YEARS from completion (with 12 months of income to be held on an escrow account). I am selling the one beds which come complete with a luxury furniture package included in the price for NZD 236,400 and the 2 beds for NZD 353,280. The guaranteed income is equivalent to an 8% yield. After 4 years, there is no more income guarantee, but the owner can benefit from the upside (the manager keeps all income over this 8% return for the first 4 years, and afterwards is incentivised to generate more than 8% yield). The contract is assignable, so you can sell on before completion if you want to.
The GST is chargeable at 0%, the income can be offset for tax purposes by interest and depreciation, and there is no capital gains tax in NZ for non residents on that type of investments.
Please contact me at [email protected] for more details.