hi everyone, this may be an easy process for you out there but im after some reasurance. i have access to a line of credit here in oz and have found some interesting propertys in n.z. i want to use line of credit as deposit and borrowrest . do i borrow rest in oz or nz, do i pay back interest on money from line of credit and rent pays for money borrowed,the propertys are pos geared. thanks as you may see im still getting feet on ground re knowlege on property investig any info would be great.[blush2]
Hi Sharvonie
First – find out the max you can borrow in NZ – ie. 90 – 95% ++, depending on the shortfall you can pull the money from Aus.
Another thing to think about is the Tax component – pls have a chat with an accountant who has experience in these kind of matters.
Well done & good luck.
regardsAnanda
Hi Sharvonie
Are you an Australian Resident? Assuming you are, you can use your LOC to pay for deposits and or shortfalls when purchasing your property in NZ. You will need to get your loan secured against the NZ property in NZ. However, if you bank with the CBA, ANZ etc here in OZ you can get a “letter of credit” that will guarantee the purchase. This is not easy to organise and you need to be a “good” client in the banks eyes to get this happening. To keep it simple, open up a savings account in NZ with say the ANZ. transter the deposit etc into that account and apply for the laon to purchase the NZ property with the bank you have chosen to set up the savings account with ( they will then have your ID etc), the rent etc then needs to go into that savings account, but if your an Aussie citzen you will have no problem transfering the funds into your Oz account. Do all this (loan pre-approval) BEFORE you purchase anything.
Clear as mudd?
email me if you like – I’m a finance broker
[email protected]Deanna Wittey
Hi Sharvonie,
You are able to obtain finance for New Zealand properties through some Australian lenders from Australia. Using a LOC for a deposit is fine.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044I saw a Rate chart for one of the trans tasman lenders yesterday out of interest. Their rates were ok and they will let you fund your Deposit anyway you like. They also allow you the simplicity of keeping your Australian Bank Account and NOT having to open one in N.Z.
Good Luck…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
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