Question from Juanita updated on 20th December 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 expert Kris Pedersen responded:
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.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz