All Topics / Help Needed! / NZ IP – how do u do it

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  • Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50

    Hello everyone,
    From Sydney I have just purchased my first IP in NZ which is so exciting and scary all at the same time. Any way my question is, how do u guys purchase 1-3 IPs in NZ when you are only there for two weeks or so. Are these IPs for starters in good condition that they don’t need renovating. There is also, like any property purchase a lot of running around to do. Im going back soon and would like to purchase another house but the thought of not finding a tenant before i come back is kind of putting me off. Its also a mortgagee sale so Im not too sure if it needs a lot of work.
    Would also like to know if everyone take out rental insurance along with the normal landlord insurance for every IP they have. This tenant in my new IP has been there for a year already so I thought I wouldn’t get rental insurance. At this stage I have only taken the basic insurance for landlords ($340 as it cost another $300 or so dollars for the rental insurance. I know these questions may sound silly to some but I would really appreciate some feed back. Thank you

    Profile photo of RussHRussH
    Member
    @russh
    Join Date: 2004
    Post Count: 342

    The only silly or dumb questions are the ones u dont ask.[biggrin]

    Russ.

    Profile photo of yackyack
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    @yack
    Join Date: 2003
    Post Count: 1,206

    I dont have rental insurance on any of my properties. However, I have property managers and they are near home so I can keep an eye on them.

    The only rent I have ever lost was between tenants anyway. I did have a tenant who left before the lease term was up, but that was only a month. So 5 years of paying rent insurance still would have exceeded what I would get from the insurance anyway.

    I do have cover for landlords insurance and public liability.

    I suppose the other thing is, can you cope with loosing rent for a month, if a tenant leaves early.

    And another thing – would you consider your property would attract good tenants. If so, why get rental insurance.

    If I had properties in NZ, far from home and I would struggle loosing rent for a month then I would take it out.

    As I dont have any properties in NZ and I use a property manager and I could cope with loosing rent for a month, and my properties attract reasonable tenants, then I would not waste my money on rent insurance.

    Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50

    Thanx yak, Ive been thinking hard about getting a property manager instead of doing it myself from over here. I can afford to give up a months rent so I might just give the rental insurance a miss.
    Thanx for your help [biggrin]

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    Originally posted by mitzu5:

    Hello everyone,
    From Sydney I have just purchased my first IP in NZ which is so exciting and scary all at the same time. Any way my question is, how do u guys purchase 1-3 IPs in NZ when you are only there for two weeks or so. Are these IPs for starters in good condition that they don’t need renovating. There is also, like any property purchase a lot of running around to do. Im going back soon and would like to purchase another house but the thought of not finding a tenant before i come back is kind of putting me off. Its also a mortgagee sale so Im not too sure if it needs a lot of work.
    Would also like to know if everyone take out rental insurance along with the normal landlord insurance for every IP they have. This tenant in my new IP has been there for a year already so I thought I wouldn’t get rental insurance. At this stage I have only taken the basic insurance for landlords ($340 as it cost another $300 or so dollars for the rental insurance. I know these questions may sound silly to some but I would really appreciate some feed back. Thank you

    From what I heard from other forumite in NZ there is no such thing as Landlord insurance, I am not sure wether it is true. You said you took out basic landlord insurance for $340, what does it cover there in NZ? which insurer are you using?

    Kind regards

    Chan Dollars
    [Retire Young, Retire Rich] [strum]

    Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50

    Chan,
    I am insured with Tower. They have insured me for home and contents. This cover is full replacement value which was a condition the bank needed for me to get the loan. They were a bit cheaper than rentsure but they dont cover you for unpaid rent. I only know of rentsure and I think NZI that have rent cover.

    Profile photo of ezy.home.loans23320ezy.home.loans23320
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    @ezy.home.loans23320
    Join Date: 2003
    Post Count: 144

    I also have a question a friend of mine just bought in nz and said he had to pay 40% deposit
    is this the norm for people in Aus buying in NZ
    If not how do you go about obtaining finance at say 10% .thanks to all who help with information[mario]

    Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50

    Most of the banks i researched in NZ, you had to put down 20% deposit if you lived o/s. I heard HSBC let you put 10% down but haven’t checked it out myself.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi E.H.L
    Australians investing in NZ can obtain 80% of finance from OZ, with interest rates ranging from 6.85% to 7.25%
    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:1800 820 500
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of recoverymanrecoveryman
    Member
    @recoveryman
    Join Date: 2003
    Post Count: 122

    Hi
    I would put it in a agents hand then you should have less worry, trying to manage it from o/s is going to be hard.
    Or if the tenet has been there for a while and you have met ehm and feel Ok then give it a go and if it fails give it to a agent
    recovery

    “I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow

    Profile photo of CastleDreamerCastleDreamer
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    @castledreamer
    Join Date: 2003
    Post Count: 288

    Hi Mitzu

    I agree that a property manager is probably a good thing.
    Someone suggested that you could have a go managing yourself, and then change to a property manager if it didn’t work out. I wonder how you would know it wasn’t working out (apart from the obvious of missed rent – I think you’d notice that straight away!!!) I have four properties in NZ now (well shortly will once they settle!!) – planning using property managers so that I can concentrate on other matters in my life…

    I have competitive finance in NZ with 20% deposit paid from my money in Australia – the 80% lend done with an NZ bank.

    When I purchase, I factor in a month of vacancy to allow time to source a good tenant. If you plan for it, the costs don’t seem to be as bad. You should also be putting a clause in your contract to allow you access to the property anytime you like after it becomes unconditional. This would allow you to show the property to prospective tenants before it settles!! Hopefully NO down time rent wise!!!

    I too was told that there are no really specific landlord insurance options in NZ, but I don’t believe that yet, and am still checking it out.

    How do you purchase a few properties in only a couple of weeks over there? Lots of research into the area first before you go. Talk with agents and arrange appointments before you get there. Have your finance already sorted out. Have a building inspector chosen. Just do all of the hard yards first, then the looking is easy.[bike2]

    CastleDreamer

    Profile photo of raymondoraymondo
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    @raymondo
    Join Date: 2003
    Post Count: 6

    Just wanted to register my chuckle [laugh4] at Chan$’s undoubtedly deliberate reference to “wethers” in this NZ thread.

    Ya killing me!!

    Raymondo

    Profile photo of Matt BMatt B
    Member
    @matt-b
    Join Date: 2004
    Post Count: 22

    Apparently NZI offers a “Landlord’s Protection Insurance Extension” to their House Policy. This includes certain types of loss of rent and malicious damage, vandalism or theft by the tenants.
    Matt

    Profile photo of muppetmuppet
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    @muppet
    Join Date: 2003
    Post Count: 900

    Hi Guys

    For Landlords Insurance try http://www.rentsure.co.nz

    Regards

    Profile photo of RodCRodC
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    @rodc
    Join Date: 2002
    Post Count: 335
    Originally posted by ezy.home.loans23320:

    I also have a question a friend of mine just bought in nz and said he had to pay 40% deposit
    is this the norm for people in Aus buying in NZ
    If not how do you go about obtaining finance at say 10% .thanks to all who help with information[mario]

    Generally a 20% deposit is required, but for some areas some lenders will require 30%. 40% seems a bit much.

    regards,

    Rod.

    Profile photo of mitzu5mitzu5
    Participant
    @mitzu5
    Join Date: 2003
    Post Count: 50

    Thanks Castledreamer,
    I have taken alot of what you have said on board for my next IP which will hopefully be soon.Thanx to everyone.[exhappy]

    Profile photo of drinksbunnydrinksbunny
    Member
    @drinksbunny
    Join Date: 2004
    Post Count: 8

    AMI also offer landlord insurance, although I don’t have it as we personally know our present tenant really well and they didn’t offer it when we took on our previous tenant.

    Be careful with property managers, they aren’t nearly as good as the one’s over here. My recommendation would be to go so an agency that doesn’t handle alot of rentals but are trying to break into the rental market. I have rented in NZ and the big agencies never did any inspections except the first one and the final one. I used a smaller agency for our IP and we had regular inspections, but we really had to insist on them.

    This is my first post and I have to say the amount of knowledge on this site is amazing & abit overwhelming ;)

    Profile photo of CastleDreamerCastleDreamer
    Participant
    @castledreamer
    Join Date: 2003
    Post Count: 288

    Hi Mitzu,

    feel free to PM me any time. If I can’t help, I’ll ask someone who can…
    Cheers
    CD

    CastleDreamer

    Profile photo of ezyasezyas
    Member
    @ezyas
    Join Date: 2003
    Post Count: 2

    HI i am new to this so if i am in the wrong area forgive me.
    I was wondering if i have a few dollars and i would like to invest it in property in new Zealand, my question is if i purchase property in NZ will i lose my first home buyers grant?
    Also if i purchase property over seas do i have to decare that?(possibly a tax question)

    thanx

    Profile photo of geogeo
    Member
    @geo
    Join Date: 2003
    Post Count: 1,194

    Hi

    you have to declare your tax when you bring your income from overseas to Australia. and no – you shouldn’t lose your FHOG in Australia because it is not your primrary place of residence.

    Kind Regards,
    George.

    “If You never never ask, you’ll never never know”

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