I am a seasoned Australian investor.
What are the differences investing in NZ?
Do properties have rates, water costs? what are the averages there? I saw one property that was on a 100 year old lease, is that the case with all properties, or was that just a 1 off? Normally when you buy the house you own the land for ever?
What is the cost of property agents in the NZ?
If a property costs $500,000. How would I be able to buy? Do I need to transfer a deposit to NZD?
Can I use an Australian big 4 bank to get a loan? What would my interest rate be?
Or can the big 4 banks just take care of the fund transfer? Does the money even move banks? maybe not.
Can I negotiate with the seller to buy in AUD? How do you do that?
What are NZ tenants like? reliable?what is this Ground-Rent?
Ground-Rent is the name given to the payment made by tenants to landlords, or by leaseholders to the State, for the use of bare land, apart from improvements. If a tenant hires the use of buildings, or other improvements also, he makes a further payment that combines the charges of interest, depreciation, and insurance.
does the owner pay this to the government from the rent? and this is on top of regular rates as well? 8k in annual rates on a $100k property doesnt sound right?What are the differences investing in NZ?
–There are several subtle differences. The main advantages are low entry costs (no stamp duty), low holding costs (no land tax), low exit costs (0% CGT if not trading properties).
Do properties have rates, water costs?
–Yes
what are the averages there?
–Depends on the area, similar to Australia.
I saw one property that was on a 100 year old lease, is that the case with all properties, or was that just a 1 off? Normally when you buy the house you own the land for ever?
–Some properties you can purchase a leasehold. Freehold properties are my preference (house and land).
What is the cost of property agents in the NZ?
–Usually about 7% but negotiable
If a property costs $500,000. How would I be able to buy?
–Make an offer and sign a contract.
Do I need to transfer a deposit to NZD?
–If a deposit is part of the deal yes.
Can I use an Australian big 4 bank to get a loan?
–You’re best using a NZ Bank or institution. Fortunately they will include Australian income to determine servicability.
What would my interest rate be?
–Check their sites for comparison. You will generally have a higher rate than NZ residents.
Or can the big 4 banks just take care of the fund transfer? Does the money even move banks? maybe not.
Can I negotiate with the seller to buy in AUD? How do you do that?
–Generally no. You will need to calculate the conversion rate.
What are NZ tenants like? reliable?
–Depends on the area and property type you are investing in.
Hope this helps.
Aussie
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