Thoughts about buying property in australia

[genius]

Hi Folks,

Here's a question for all the intelligent PI's out there:

With NZ dollar in parity to AUS dollar (well almost- just a matter of days in my opinion), do you think it is the right time to invest in Australia (only interested in Sydney/Melbourne for now) for kiwi property investors?

For us kiwis, a deposit now for an Australian property is a roughly 20% discount (in terms of $NZ currency exchange which used to normally linger around the 80cent mark) and their property cycle is just starting to kick off I believe (more RBA interest rate cuts ahead for them) - also might be a decent diversification geographically too particularly for me as I am quite heavily invested in Auckland property? Also, is it possible to get a mortgage in Australia with NZ income and Australian rental income?

Thoughts?
Thanks in advance.

[Eljay1]

The Sydney market is way beyond having kicked off and is arguably at, or near the top. Most experienced investors are no longer buying there, or are selling up to cash in on the boom. Melbourne has also moved a lot, but still some options there I believe.

[chrisgoh]

I love this guy, exactly my sentiments...

House prices represent success in life

[speights boy]

Property: Think Sydney's expensive? Try Auckland

Sydneysiders are being advised to take comfort from their high house prices - because Aucklanders are suffering more.

[genius]

The Sydney market is way beyond having kicked off and is arguably at, or near the top. Most experienced investors are no longer buying there, or are selling up to cash in on the boom. Melbourne has also moved a lot, but still some options there I believe.

I believe the Australian property cycle (although state dependant) lags New Zealand by 2-3 years i.e. they are experiencing Auckland's 2013 level inflation -

Property: Think Sydney's expensive? Try Auckland

So it is cheaper for us Aucklanders then lol

[chrisgoh]

So it is cheaper for us Aucklanders then lol

You think Ozi property cheaper?

Coogee apartment sells for more than $500,000 over reserve

[genius]

I'm not saying it's cheaper - it was obviously a joke lol

[Wayne]

I love this guy, exactly my sentiments...

House prices represent success in life

He is just an opinionated wally.
Often has trouble sticking to facts.

[Damap]

Your question is actually about currency speculation that is not a reason to buy a proper internationally. Given OZ economy is in decline it is arguable that you shouldn't buy there for another year or so at least till you see how far their prices slide, (if they do)

[skid]

Also extra costs to take into consideration (stamp duty-etc etc.)

[lissie]

And capital gain tax ...

[Anomaly14]

And capital gain tax ...

Also labour costs for tradies are more expensive in Aussie. Minimum $45 per hour for a handyman. Don't even think about plumbers and electricians.