All Topics / Overseas Deals / NZ market?

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  • Profile photo of crashycrashy
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    @crashy
    Join Date: 2003
    Post Count: 736

    thinking of taking advantage of the exchange rate and moving back to NZ.

    whats the current NZ market like?

    mattnz
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    @mattnz
    Join Date: 2007
    Post Count: 574

    No stamp duty or capital gains for a start. :) almost 1.3 times the buying power, great huh. :)

    I think it will be slow the next couple of years, hopefully drop a bit even.

    All other things being equal, in 2 years interest rates should have dropped, and the equivalent of the first home buyers grant will have started (3k per person for those in kiwisaver plus they can access their super savings and it accumulates for couples. Over the first 2 years of the grants they increase to 5k per person).

    Basically the scenario will be similar to 2000 when Australia introduced the first home buyers grant and we know what happened for the next few years following. Its just a pity that NZ house prices are already so high which will limit the gains due to affordability issues.

    Cheers,
    Matt

    Profile photo of crashycrashy
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    @crashy
    Join Date: 2003
    Post Count: 736

    great info, thanks.

    what areas should I look at?

    mattnz
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    @mattnz
    Join Date: 2007
    Post Count: 574

    The same areas that I am looking at, which is why unfortunately I won't share my research or we (and the rest of the forum) would be competing over some of the same properties. I would like to build a portfolio of about 10 properties in NZ over the next 3 years.

    I found your website to be interesting reading. I wasn't aware that such arbitrage opportunities existed.

    mattnz
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    @mattnz
    Join Date: 2007
    Post Count: 574

    I should also mention that NZ interest rates dropped today for the first time in 5 years. Expected to lower the official cash rate from 8.25% to 6.75% in the next couple of years.

    Profile photo of condogcondog
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    @condog
    Join Date: 2006
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    its tempting with the record exchange rate but with the NZ$ predicted to drop to 65c US in the next 6-12 mths and the AU predicted to have a much slower and later drop if at all the exchange rate to the Kiwi is likely only to get better.  See google news todays business section.

    Also having just returned from NZ if people think Ausie prices are rediculous then given the kiwis limited earning capacity , lower wages and lack of substantial population growth , the prices are completely out of whack.

    The fundamentals are not in place for any sort of immediate recovery like they are in Sydney and Brisbane.

    mattnz
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    @mattnz
    Join Date: 2007
    Post Count: 574

    Agree with everything you say condog.

    Does anyone know of any lenders that will allow you to borrow in foreign currency against nz houses? I have found them for Australia but not in nz. I want to wait for the nzd to bottom out then borrow in a range of foreign currencies, then sell out  in a few years when the exchange rate is high again.

    Profile photo of stu_maccastu_macca
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    @stu_macca
    Join Date: 2007
    Post Count: 23

    Sorry I don't now the answer RE NZ property.

    I have been trying to find out for Aus though.  All the banks have been saying I need to receive the bulk of my income from the foreign currency.

    Have you found a way around that?

    Profile photo of wireless2000wireless2000
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    @wireless2000
    Join Date: 2008
    Post Count: 5

    i dont know too much about the market but i lived in nz for the past 3 years and recently moved overseas

    i sold my house in there in october of last year, in a suburb called Kohimarama.

    ive since moved overseas.

    i really thought id sold it too cheaply in the mid 600's, however a mate of mine sent me this not long ago

    http://www.nzherald.co.nz/section/story.cfm?c_id=516&objectid=10516401

    before i left there were plenty of stories of people having to sell their investment units in the city way under the purchase price.

    it will though depend on where you buy

    exchange rate and no cgt is great but interest rates are quite high there

    cheers

    Profile photo of crashycrashy
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    @crashy
    Join Date: 2003
    Post Count: 736

    are banks in NZ hiking rate independant of the RBNZ?

    ie, are mortgage rates really higher or do you just assume they are because the reserve bank rate is higher?

    stu, Im hoping to pay cash as a loan is too hard

    Profile photo of kj2ekj2e
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    @kj2e
    Join Date: 2007
    Post Count: 2

    Does anyone have a template for a Business Plan to support a loan application to a bank?

    Ready to go with a small duplex project so not after anything too detailed………. just the basics.

    Cheers

    Kevin

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