Exploring deposit options

Question from diem updated on 23rd October 2017:

I'm a New Zealand citizen but have recently relocated to Australia for about a year. I'm planning to move back to New Zealand at the end of this year, 2017. I'm looking to buy a property for myself to live once I'm back in New Zealand.

But, in the meantime, my parents will live in that property and will pay rent for me. I can't afford to deposit 40% on the $700,000 worth house. I have about $220,000. What is the best option for me to do now? My income is $50,000 after tax.





Our expert Kris Pedersen responded:

With the house being a rental property the main banks aren't going to exempt this, even though you plan to live in it down the track. There may be a non-bank option to look at as there are a lending options outside the main banks which can do investment lending at LVR's in the 70-80% bracket - both of which you meet.

Do note that one issue may be the servicing side of the equation, based on what you have stated. But I would need more information on the rental that you will achieve and what you are paying in AUS rent to advise further on that.




Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz

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