New Zealand Help!

B

Barter

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Hi everyone. Newbie here!! I am looking for some advice on buying an overseas property in New Zealand to be specific. I do not own a home in Ireland and have 18k savings. I am wondering is it possible to get a mortgage to the value of 150k to buy overseas without owning a property here and if so were should I be looking. All advice greaty appreciated!!!
 
OK why would that be if I was to buy in another country? Is something like this even possible to finance without already owning a home here??
 
If you own a property anywhere else in the world you automatically lose your FTB status in Ireland-that's the rule, as discussed on AAM before.

It should of course be possible to finance such a venture without owning a property in Ireland, but the likelihood of an Irish bank giving you finance is slim I would have thought, but I'm sure others who are more familiar with overseas investment will advise.

Have you looked into borrowing in New Zealand?

As a matter of interest, what has attracted you to New Zealand?
 
Hi Barter,

You could try Bank of Scotland for example but I think it's unlikely that you will get such a high level of finance for a property, which is literally on the other side of the world.

If you did manage to get a mortgage in New Zealand, interest rates are 7-9%, which is significantly more than Irish rates. Will rental income be sufficient to cover such a loan?

Where about were you thinking of investing?
 
Don't know the answer to your specific Q and I don't want to put you off but you should be aware of the following:
  • you need to advise revenue in ireland as you are taxed on worldwide income and any profit after expenses earned in NZ is taxed at your marginal rate in ireland. You also no doubt have to declare this income/profit to the NZ authorities and pay appropiate taxes.
  • If there is a double taxation agreement between Ireland & NZ and it covers rental Income you get a credit for the tax paid in NZ against your Irish tax liability.
  • You should also be aware of your liability to CGT in both countries.
  • Get professional advise in both countries if in any doubt. In the early years your liability in ireland will probably be quite small anyway.
  • Currency fluctuations
  • Inflation Rate in NZ
 
Hi,

I bought a property in NZ last year. I was under the impression that you had to get a mortgage in NZ (or at least it was a lot easier that way). Bear in mind I live in Australia, so maybe that was the reason. Not sure if it's a different story from home.

Also, I'd agree with the advice given above ... and research, research, research

Good luck
 
Just to note - you should check out the visa situation there before buying. I lived ther for four months and had to get a years visa. You are only entitled to one visa for working so there may be a limit on the amount of holiday visas you can get. Also please note that it is alot bigger than it looks on th map so be careful you do not buy to far from the cities. For example it is a five hour drive from Christchurch to Queenstown. Queenstwon is adrenalin heaven and paradise for the views butt he salaries are pretty low so rental income may be quiite low
 
You could also look at setting up a company in New Zealand and acquiring property that way. Tax implications may or may not be more favourable to purchasing property this way.

5 hours from Queenstown to Christchurch is pretty good (took me 6 at a decent speed), but Qawra's point is a good one. NZ is a pretty vast place compared to Ireland.

Where are you thinking of buying and is it for rental income/capital appreciation or what?

One area I lived in (3 years ago in Tauranga) was a lovely area, population of abut 70K i think. It was a main port and a busy area in the Summer time. When I rented there it cost me $80 (€40 at the time roughy) a week with 2 other people in a decent sized 3 bed house. However, the area has been hit hard by flooding in the last 2 years.
My rent was similar when I spent time in Christchurch.
That kind of rental yield wouldn't really appeal to me with the risk of having my asset on the other side of the world.

Loved New Zealand and could see myself buying a place there and retiring there at some stage.
 
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