New Zealand equity
Question from Jessica updated on 18th May 2015:
We have three properties in New Zealand but have just moved to Australia. We want to buy a house here to live in and to use equity from our NZ properties (they are at less than 80% of total value). They are also making more money than I at first thought, which is unnecessary. Is this legal? And if it is, are we able to claim the additional interest as an expense?
Our expert Kris Pedersen responded:
Hi Jessica, we can look to leverage you up to 80% on your properties here using New Zealand lenders and then you can look to contact an Australia based broker to arrange the funding to complete the purchase in Australia. I can't see any reason why making more money would be illegal but best to touch base with an accountant to clarify this. In regards to whether you can claim the additional interest as an expense this is unlikely as it is going to be used for personal purposes however again best to take an accountants advise on this. Feel free to contact me directly if you wish to look at this further on email@example.com Thanks, Kris Pedersen
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz