NZ Dunedin NZ

Any thoughts?

I have a younger friend sister who lives in NZ and she cannot afford to buy property yet, but if I buy N$180k-ish I can rent to her while she's saving for deposit, then will subsequently sell it when she can afford a deposit and qualify for a loan.

 

What would be the rent.
Prior growth, future prediction. Infrastructure.

Do you plan to buy in future?
Will this impact your serviceability?

There are many questions to be answered.

Regards

 

Just wondering why your location is written as 'earth' rather than a city or state?

 

not bad idea if it would be cash flow positive as Dunedin is growing a bit (also if you are able to borrow NZ$) at least it is not in major earthquake fault line. I think @ellejay has ips in NZ and doing well so she could advise more

 

Good spot for steady long term growth. A lot of students there drive the economy and people moving south due to relative affordability compared to Auckland, Wellington and Christchurch

 

I don't mind Dundin as a location for investment but get lots of local advice about suburbs and issues like sunlight, parking etc. Can be a big deal as it's a hilly city and if your house is in the shade all day tenants will avoid for obvious reasons. Are you okay with the 40% deposit?

NZ like alot of Aus is slowing after a boom but if you're wanting to help your sister and in for the long haul then that's okay.

 

Has now been changed to 35% recently, also some smaller lenders like NZCU & credit union are still doing 20% deposits on investments

 

Not sure if @KrustyDaPizza is just well grounded or could be a Hobbit who has moved away from Middle Earth.

 

HA? Really? not even 20%? Is this a requirement for non-NZ residents?

 

Now in Upper Earth

 

Upper crust, must be doing well.

 

There is second tier lenders/financial institutions that can go outside of this rule using 20% - if you know where to look.

But yes all foreign investment and local is governed by 35% now. Better than 40% but still terrible.

Given i can get such good yields in NZ I really want to use my properties here for growth, and consolidate later to NZ. 1x $600k house here buys me 3x $200k with 7-8% yield

 

Talk to an NZ broker to check out your borrowing options. I use squirrel mortgages.

 

Just avoid Hyde street maybe......

 

I like the town very nice but too cold, prefer up North

 

I was there that day ha

 

Very nice area with the world's steepest hill. I was in the area couple of weeks ago and it was pretty quiet due to some of the university students being away. The area wouldn't survive if it wasn't for the student population but they do have quite a few nice noodle soup places.

When I looked at properties in Queenstown for fun (in millions!) I was told that the deposit requirement for investment properties were 40% deposits.