All Topics / General Property / NZ Rent to Australia
Hi,
I’ve just bought a couple of properties in NZ, using finance from a mortgage in Australia. Just wondering if anyone has any tips and tricks for cheap ways to transfer the monthly rent into an Australian account without having to pay $30 or so each time for international telegraphic transfers.
Any help would be much appreciated.
Cheers
Hi,
the best way to do it is to just keep it a NZ account over ther and once it reaches like $10k, just transfer it over in bulk. I think it’ll be too much hasle to transfer it over every week.
Kind Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
I did not realise there was any charges to transfer the money from NZ to Aus. Could you not open an ANZ account in NZ and then just transfer the money via internet banking?[blink]
You will always miss 100% of the shots you don’t take!
Sure … set up an account with Ozforex.com.au …and they can give you competitive quotes to exchange your currency …maybe even no fee and you can do it online yourself from your acccount in NZ to your loan account in OZ .
Cheers
PS: What do you think about the FX risk ? worth the lower cost of funds or ?Hi again,
Thanks for your responses. I thought that even having an ANZ account in both countries, the banks would still charge a TT and forex fee. Thanks for the suggestion about ozforex.com.au – their rates do look pretty good (too bad I didn’t know about them before settlement…)
I think as far as the forex risk goes, at least the NZD (hopefully) shouldn’t go too far away from the AUD. I had a look at mortgage rates in NZ and it looks about 1% more expensive, which would probably turn out to cost more than forex fluctuations.
Thanks again
I thought that even having an ANZ account in both countries, the banks would still charge a TT and forex fee.you’re right, they do.
regards,
Rod
I think it looks good now 1 kiwi = .93 odd aussie, but i noticed it had been down at .74 in 2000. I think comfortable band looks like .80-.90 range.Outside of that the downside looks a bit scary.
Hi,
I think that most Aussies who invest in NZ don’t withdraw funds weekly. That doesn’t make much sense to me. Keep the money in a NZ account for a rainy day when the tenant doesn’t pay or to cover for maintenance items and rates.
We just forget about it, and let the funds build up so that you get the deposit for the next one!
We have invested in NZ for a year now, and I can honestly say that we have never withdrew any funds.
Regards,
Del
Hi there,
the first question, what I do is have a NZ bank account both with internet banking and an ATM card. This means you can withdraw your NZ currency in local cash equivalent, anywhere in the world. brilliant. I also have internet banking, which I use not for o’seas transactions but to pay rates and other NZ bills etc online.
You don’t want to be bringing the money back here and then having to get money back there to pay stuff.
I agree with Wilandel – leave the NZ money there and use it to buy more, or add value to your existing properties. Or (if you’re me, naughty naughty, withdraw it in Aus and spend it!!!)
re hooba’s comment “I think it looks good now 1 kiwi = .93 odd aussie, but i noticed it had been down at .74 in 2000. I think comfortable band looks like .80-.90 range.Outside of that the downside looks a bit scary.”
you only really have to worry about it if you are borrowing in Aus (say) and buying in NZ and your NZ income has to repay an Aussie debt. Then if the currency moves in your favour, you’re winning, but if it moves against you, you could consider refinancing in the local currency. Which is what Dolf de roos recommends doing anyway, as a hedge against exactly what you’re talking about – currency fluctuations.
cheers-
Minijoy to the world
“you only really have to worry about it if you are borrowing in Aus (say) and buying in NZ and your NZ income has to repay an Aussie debt”
That is I believe the case for nmcase therefore the need to bring back the rent each month to pay the debt in OZ. This is the instance when the FX risk is evident.I am not familiar with Dolf’s procedure ..where can i get some more info?
Cheers .I’ve had a look into ozforex.com.au and they actually look pretty good – good exchange and good (ie cheap) fees. Has anyone used them before and have any positive or negative feedback about them?
Del – have you got a mortgage in NZ? Am I right in thinking that interest rates are about 0.75% higher in NZ at the moment?
Does anyone know what the chances of setting up a small mortgage in NZ from Australia would be?? – in order to have somewhere to send the rent in NZ and have it actually reducing interest on the loan.
Thanks everyone for your help
Hi Wilandel
Just a quick question with your deposits for the properties in NZ was it borrowed from Australia 20% or were they cash, because I still have to bring some back to cover my deposit money from Australia which I use from my LOC account to enable me to purchase at 80% borrowed money for each deal in NZ.
Is anybody doing it differentlyRegards
SMITHY
I used a Bank in NZ and cash deposit , to keep the funds and debt offshore and not have the risk of adverse FX moves that could easily wipe out the near 1% interest rate diferential between and OZ mortgage and an NZ one. You can get an 18m fixed rate of 7.35% last i checked.
Cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.