Comments on: Oz v Kiwi Property investing

By: Ted Ottrey

Ted Ottrey — Thu, 16 Oct 2008 21:21:05 +0000

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

By: Tim

Tim — Sun, 12 Oct 2008 20:00:00 +0000

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

By: Geoff Webster

Geoff Webster — Fri, 10 Oct 2008 04:17:11 +0000

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.

By: Harold Carter

Harold Carter — Fri, 10 Oct 2008 02:15:04 +0000

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.

By: Graham Sharp - Brisbane

Graham Sharp - Brisbane — Fri, 10 Oct 2008 00:03:41 +0000

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.

By: Tony Fraser-Jones

Tony Fraser-Jones — Thu, 09 Oct 2008 22:46:34 +0000

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.

By: Paul Middleditch

Paul Middleditch — Thu, 09 Oct 2008 22:24:13 +0000

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.

By: Kingsley Fernando

Kingsley Fernando — Thu, 09 Oct 2008 21:42:10 +0000

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)