tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, June 21st, 6:39PM

News

rss
Latest Headlines

Oz v Kiwi Property investing

Friday, October 10th 2008, 8:47AM 8 Comments

by Philip Macalister

After returning to New Zealand after following two weeks in tropical North Queensland I am left wondering about each countries' approach to property investing.

My thoughts are that in Australia they are far more recpetive to the idea of residential property investment, while here our politicians and officials spend a heck of a lot of time trying to jawbone the market downwards and discourage people from buying bricks and mortar.

This, at the moment, seems an odd strategy considering the carnage currently taking place on the world share markets.


Two of the items which made me think about this was when I had trouble with my Visa card and went into a Westpac branch in a little town out the back of beyond. Here the bank proudly displayed a number of comprehensive brochures on how to invest in property, questions to consider and how the bank could help. (Also in this town I met a lady who wants to get the NZ Property Investor Magazine and reads this site - Hi!)

In New Zealand I'm often surprised that banks don't provide, or promote, solid options for property investors. After all there are around quarter of a million people who own investment property, no doubt valued at many billions of dollars.

To its credit ANZ has worked hard in this market and partnered up with the NZ Property Investors' Federation.

But perhaps the item which got me really thinking about this was an ad in the local paper.
This ad was run by CentreLink (the government department charged with looking after welfare and the like). It was advertising a seminar series designed to teach people about the benefits of leveraging and investing in property.

Now I bet that is not something you would see in this country.

These are just two examples of things which made it seem Australians were positive about property.

What is odd though is that property investment in New Zealand has some real benefits over Australia. For instance we don't have stamp duty (a form of tax) and our yields seem much better.

So maybe we should be picking up on this Oz enthusiasm for property investment and encourage more Australians to our market!
« The business of property investingThe cuts are coming »

Special Offers

Comments from our readers

On 10 October 2008 at 10:42 am Kingsley Fernando said:
Are you correct in your assessment of the Australian situation? I understand that unlike in NZ, there are no tax advantages for property investors in Australia (like deducting interest payment from you income)
On 10 October 2008 at 11:24 am Paul Middleditch said:
Too right, but ain't that the NZ way. People start doing well for themselves and they'll get knocked down by their friends and the govt.
On 10 October 2008 at 11:46 am Tony Fraser-Jones said:
I am saddened by the way government in NZ treats people who work hard to get ahead. In Aussie and the US success is treated as it should be - with celebration.
On 10 October 2008 at 1:03 pm Graham Sharp - Brisbane said:
Compared to Australia, NZ is an investor's paradise. There is no stamp duty, no land taxes and, most significantly, no capital gains tax. The GROSS return on houses and units in the major cities in Oz is currently a lowly 3 to 4%. In February I sold a block of 6 units in Brisbane for $1.4m. The guy who bought it was up for $56,000 stamp duty. If he borrowed the money he had to pay stamp duty again. And, I have just received a capital gains tax bill of $140,000!!! You guys have tax breaks we can only dream about.
On 10 October 2008 at 3:15 pm Harold Carter said:
While there is stamp duty and capital gains tax in Australia, if you plan your exit strategy correctly you can reduce the amount you pay in capital gains tax. There is CGT in NZ but it is determined on the purpose for which the property was purchased.

Stamp duty is offset against capital gains and if the property is owned for more than twelve months you are only assessed on 50% of the capital gain at your marginal tax rate. So if you get your marginal tax rate down by offsetting loan interest etc, your CGT bill can be very low. Australia doesn’t have depreciation claw back levy.

There are new tax laws that make investing in NZ from Australia very palatable, but check with your accountant.

This post does not constitute investment advice.
On 10 October 2008 at 5:17 pm Geoff Webster said:
Being an Aussie wanting to invest in NZ, it's been difficult to source the right information, as it's not easy to find as a foreign investor. For example, ownership structure, lending criteria, pre-purchase inspectors (building, pest, weather -tightness), depreciation specialists, lawyers, etc in the NZ cities being considered.
In Aust there are wealth creation organisations that assist investors with all of this.
Who in NZ, specifically South Island, ideally Dunedin who would?
If the mechanisms were in place in NZ to help investors, then I'm sure you'd see more Aussie investors considering NZ seriously.
On 13 October 2008 at 9:00 am Tim said:
hello Geoff

give me an email on timb@lbm.co.nz

I am a property manager (www.lbm.co.nz) in Dunedin and might be able to help you out
On 17 October 2008 at 10:21 am Ted Ottrey said:
Hello Geoff,
Having purchased a large number of investment properties in Dunedin over the last 5 years I have a very good understanding of the Dunedin market and who to talk to with regaurds to getting checks on properties and the sale process. It may also be of interest to you that I have acted as a property finder sourcing investments for other people. If you have any querries please send me an email.

Cheers Ted
housingsolutions@callplus.net.nz
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.09 6.95
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.84 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.24 6.75 6.39
Median 8.64 7.19 7.17 6.65

Last updated: 20 June 2024 10:39am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com