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Finance for NZ'er living overseas

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  • Finance for NZ'er living overseas

    A question maybe more for the mortage brokers in NZ and/or others that are currently doing this...

    My background:
    I am a kiwi (have a NZ passport, etc), born/lived in NZ all my life until about 2 1/2 years ago when I went to London. I am now planning on returning to NZ within the next year but want to start investing in property there now. I have had a quick talk to a mortgage broker in NZ already and he said that the most finance I can get is 80% because I am not a NZ resident.

    Is this correct? Can I get more? eg: 90% - 95%
    Can I do this by setting up a trust?


  • #2
    Hi Roadrunna

    This may be because the banks or finance companies may think the finance is for an investment property and not a primary residence and this may account for the difference in % figures (I may be wrong though)

    Rae - your thoughts?

    Would be keen to find out the correct figures too as I am sure there are a lot of people in the same position.


    • #3
      Hi Rooadrunner,
      80% LVR is the max for an Australian resident buying an investment property in New Zealand, As you are no longer a resident of New Zealand the 80% max LVR may apply to you also,
      As a Mortgage Broker operating from Australia I can arrange loans for New Zealand residents up to 90% max LVR, but as you are living in the UK I am not sure if you would qualify,
      However, as you hold an NZ passport there may be an alternative, but I suggest you check this out with a qualified accountant in New Zealand.
      I hope this vague information has been of some help to you
      Kind Regards


      • #4
        Hi Steven

        Thanks for your input in these postings.

        It is always good to have an expert helping with answers.

        "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


        • #5
          Thanks for the prompt replies...

          So basically, it's probably best to wait until I get back to NZ before investing in property there as I can get more for my money, that way I can get up to 95% LVR instead of putting down such a big deposit.

          I also hear that you can in some cases get 100% LVR if you already own a property without having to refinance? so I could go back to NZ, buy a house to live in, and then get 100% of the mortgage in investment properties?

          The only other way of investing overseas in NZ is by setting up a trust there and then getting the 90% - 95% LVR as a trust is a NZ entity... is this common? or true?

          Look forward to further discussions on these points!


          • #6
            Hi RR,

            Just a quick .

            Is 95%LVR where you would like to be in the current climate?



            • #7


              Well, anywhere between 90%-95% LVR is fine... interest rates are still fairly low, so might as well borrow as much as possible!

              Why do you ask just out of interest??

              Also, to update things... I've managed to get a 90% LVR on NZ property now which is great, so I'll be now looking for an investment property there.

              The question I now have, is if I buy a property there now.. and in say a years time decide to move back to NZ, assuming that the property that I brought now doesn't go up in value and is worth the same in one years time, can I use any of the properties value to finance my next purchase? or will I have to come up with another 10% deposit if I get a 90% LVR?

              I found out that if I am self employed now, and if I start a business up in NZ doing the same things as I am now, as long as I've been doing it for at least 2 years then I can get a 80% LVR. The other option is to get a job for at least 3 months and get a 90% - 95% LVR but i'd rather not get a job if I can help it




              • #8
                Hi RR,

                I have made a post re. my views on possible dangers facing those that jumping into the market nearing the end of the boom here http://www.propertytalk.co.nz/module...iewtopic&t=410

                It is (obviously) not mine originally but I do share this view with many others.

                Not to take anything away from what plans you may have made. Just be very cautious what and where you buy, how much you pay, and the C.F that purchase may or may not produce.

                I also have no idea about your financial backing but hearing you want to borrow as much as possible teetering near that 100% LVR at this time sends a cold chill down my spine. I am not sure if this will be your first IP or not, never the less tread carefully.