NZ New Zealand? Higher yields? Possible pitfalls?

Brave call. Auckland property has had huge growth in the last 2 years.I think Auckland has peaked and is going to stay at around the same price or fall a little over the next 7-10 years. Time will tell.

 

I think the major risk with investing overseas that investors perhaps ignore is currency play, in particular if you are planning to bring the money back home ie rental income/sales proceeds.

It can work against you and it can also work for you.

For example I have investment properties in USA, the Au$ is weak now at 70 against US$, so I am making money because the Au$ is weaker than the US$. However, imagine if it were the other way around.... I would be losing money.

Just another layer of risk that you need to take into consideration.

Hope that makes sense.

 

I was thinking of buying a property in Dunedin, renting it to students and using it as a holiday home during summer (assuming that is also the uni holiday season). So in your opinion is this strategy possible, assuming the PM organises a cleaner before I stay in the place. With this strategy will be looking for about 5% yield.

 

Just back from Queenstown, what a cracking spot. 2.5hrs direct from SYD and you are in another world.

NZ certainly has some attractive features from a Tax perspective (residents).

- No capital gains tax
- Dividend imputation
- Top individual tax rate 33%
- Company tax rate 28%
- Common law based discretionary trusts function same as Oz

Saw some blocks out at Lower Shotover, not cheap but a piece of heaven. Plenty of Magic new homes around if you have a spare NZD 3M laying around! Could see myself down there in 15 years time I reckon.

 

Wait until the week long winter festival and 'mardi gras'. Good times!

 

I do most of my buying in NZ. I've been able to source alot more credit through my bank over there than with the banks here. Just bought one in Napier and will be buying again asap. Finding some properties in good areas that cover repayments on 20yr P&I mortgages. For every couple I buy there the bank are letting me borrow for a cheapie overseas. I own in Tasman area, Hawkes Bay and Canterbury and plan to spend at least half the year over there.

 

I can't wait till I spend at least half a year in NZ! Maybe in 5 to 10 years time I think

 

We plan to spend the tax year in NZ each time we sell a house there. You planning on heading over there too jins?

 

Would like to go to Auckland as l have some friends in Hamilton. Really loved ChCh

 

[QUOTif ="jins13, post: 159767, member: 447"]Would like to go to Auckland as l have some friends in Hamilton. Really loved ChCh[/QUOTE]

Hey, If you go to Auckland try to visit Waiheke Island. I fell in love with that place in a big way. I agree Christchurch and surrounds are stunning also

 

Thought it would be an appropriate time to bring this to the top.

 

There was an 5.9 magnitude earthquake

 

Another rise in the cost of insurance must be on the way!

 

Wouldn't change my love of ChCh in any shape or form. The people are certainty one of the best bunch of people I have ever met and was really impressed that some of them was able to pick out I was from Sydney.

 

I don't own anything in ChCh. Plenty of other regions to choose.

 

Very frightening for everyone who lives there especially small children and elderly living alone

 

It would certainly eat into the yields/cashflow though.

 

I was in Oamaru earlier this afternoon (abt 200 kms from ChCh as the crow flies).

I felt the shake (in two bursts, actually), but did not think it was an earthquake because I couldn't see the chandelier swinging (usually an indication of a decent jolt).

Then a woman who worked in the building I was in asked me a couple of minutes later - "did you feel the earthquake?"

Well actually, now that you mention it....

 

Mmm, not necessarily. I visited @Charlotte30 on here in ChCh and saw some of her development there. She's made a motza and enjoying retirement by living off rent. Money to be made in most places if you know how.

 

What on earth were you doing in Oamaru? Hopefully you were enjoying a lovely sunny day down there. Sounds like the EQ wasn't too disturbing for you.