Australia Investment

Juanita asks:
(updated on Thursday, December 20th 2012)

I would like to purchase an investment property here in Australia. I will need two loans, one from the equity of our properties in New Zealand and another in Australia. But I'm not sure if it's viable or even wise, due to the difference after I convert the currency to Australian dollars. Is the difference of currency likely to balance out along the way?

Our Experts Answer:

 It is viable if you have enough equity in New Zealand and if you meet the servicing criteria in Australia. Note that there can be large differences in the loan to value ratios (VTRs) that New Zealand based lenders are willing to go to for applicants who are domiciled overseas. I won't comment on the currency side of things but you may want to take expert advise on this before deciding on whether this will work for you or not.

Heartland Bank - Online 1.99
Kainga Ora - First Home Buyer Special 2.25
HSBC Premier 2.25
ICBC 2.45
Westpac Special 2.49
SBS Bank Special 2.49
The Co-operative Bank - Owner Occ 2.49
BNZ - Classic 2.49
ASB Bank 2.49
ANZ Special 2.49
TSB Special 2.49
HSBC Premier 2.35
Heartland Bank - Online 2.35
ICBC 2.45
TSB Special 2.49
ASB Bank 2.59
SBS Bank Special 2.65
Kiwibank Special 2.65
China Construction Bank Special 2.65
The Co-operative Bank - Owner Occ 2.69
AIA 2.69
Westpac Special 2.69
HSBC Premier 2.89
SBS Bank Special 2.99
The Co-operative Bank - Owner Occ 2.99
AIA 2.99
Westpac Special 2.99
BNZ - Classic 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
Kiwibank Special 3.19
TSB Special 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank - Offset 3.40
Kiwibank 3.40
Kiwibank Special 3.40
Bluestone 3.49
ICBC 3.69
Heartland 3.95
The Co-operative Bank - Owner Occ 4.40
The Co-operative Bank - Standard 4.40
Kainga Ora 4.43