Spring in New Zealand means thousands of lambs bouncing around lush evergreen fields, blooming flowers and trees, daylight saving with longer daylight "relaxed Kiwi lifestyle" hours and warmer days. It also reflects on the housing/finance market with vendors putting their house on the market in Spring. Great time to start househunting, but remember to get your preapproval from Mary before househunting!!! New Zealand is a great place to live not only for lifestyle but for jobs, education and purchasing property. A huge factor is low interest rates. If you require a mortgage preapproval (valid 4 to 6 months) and seriously looking at properties in New Zealand then contact Mary.
From 1st October the Reserve Bank of NZ has brought in new restrictions on Loan to Valuation Ratios to all New Zealand banks. This means that maximum lending for investment property is 60% and owner occupied is 80% nationwide. The exemptions are new land and construction, refinancing dollar for dollar from another lender, construction LVR is 70% for nonresidents and 80% residents. Since this announcement in late July the property market is starting to cool down. The Reserve Bank took this action, as the property market throughout the whole of New Zealand was extremely active as well as the new "Responsible Lending" law.
GDP for Q2 (June 2016) was 2.8%.
Unemployment Rate for Q2 2016 was 5.1% down from 5.5% in Q2 2015.
Policy changes from the New Zealand banks are that there will be no future lending to residents and nonresidents earning foreign income who are not New Zealand or Australian citizens or do not have New Zealand Permanent Residency.
All nonresidents now, must have a NZ tax file number before they can settle any New Zealand Property and must provide their overseas tax file number.
Property Market - New Zealand average median house increased 14.1% in July 2016 to $602,434, Auckland area increased 16% to $992,207, Tauranga increased 25.7% to $615,625, Wellington Region increased 14.4% to $524,063. Christchruch increased 3.5% to $492,165, Queenstown Lakes District increased 27% to $910,974 and Dunedin increased 11.1% to $331,967.
When you look at such a diversified value in New Zealand and look at rental return on the Government website (outlined on this website "Useful Links"), you will see the capital growth and rental returns that suit you pertaining to the New Zealand location you wish to purchase.
All investors for NZ investment property must be aware of the law "Bright Line Test" whereby all investors who now purchase residential NZ property with the intention of selling and making a gain within the first 2 years will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate (refer to your NZ Accountant)
Remember there is No Stamp Duty and No Land Tax in New Zealand. You normally require your deposit for the property plus approximately NZ$1,500 legals to NZ solicitor to acquire a New Zealand property if you have a NZ or Australian passport/citizenship.
Refer to my "Case Studies" on this website of many Australian residents, Ex Pat Kiwis living in Australia and overseas people investing or moving to NZ. There are many happy clients. Contact Mary from New Zealand Mortgage Solutions Pty Ltd for a preapproval from a choice of leading New Zealand banks/lenders.
My father came from Tralee Ireland many years ago and I have seen many Irish enjoy the New Zealand lifestyle and I would love to help the Irish.
Contact Mary of New Zealand Mortgage Solutions for assistance
Mary O’Brien sets out to help Irish people achieve a life’s ambition of owning property or investing in a great property asset ‘Downunder’.
Mary O’Brien is uniquely positioned to help the Irish obtain finance. Accredited with 13 New Zealand and 35 Australian banks/lenders Mary specialises in assisting the Irish with New Zealand and Australian finance. A move to another country is never easy, especially when selling and buying a home. Before leaving Ireland, or if you live in Ireland (as an investor), Mary can obtain a bank letterhead pre-approval for a NZ or Australian property. It gives you, the buyer, the confidence and comfort in knowing just how much you can borrow and is usually valid for 90 days.
Mary, herself is of second generation Irish descent, knows and understands the ups-and-downs, the twists-and-twirls, of establishing ones-self in a new country. That is how Mary’s father, Michael, from Tralee, Co Kerry, found the ‘New Country’ in the construction industry. Through her father, Mary has been imbued with a flair for property investment. Being a frequent visitor to Ireland, maintaining close contact with her Irish relations, Mary has that special understanding of what it is like to be Irish living aborad. She is delighted to be in a position in being able to assist other Irish people in their antipodean adventure. To read the latest real estate news in New Zealand, checkout our newsletter.
This calculator will help investors analyse various repayment schedules and interest rates, as well as the effect of extra repayments beyond the minimum amount. Click here to learn more about our mortgage calculators and currency converters.
We have compiled a handy checklist of you so you can begin to understand the process involved in getting a New Zealand mortgage.
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