Can New Zealanders Buy Property In Australia

Can New Zealanders Buy Property In Australia


– Hello and welcome.
(relaxing guitar music) Do you live in New Zealand? And are you a New Zealand
citizen or resident? And are you interested in
looking to purchase a home or investment property in Australia? Then you need to watch this video because I’m going to
give you the answer to the number one question I
always get asked by Kiwis and that is: Can New Zealanders actually
buy property in Australia? I get asked this a lot and I
want to expel the myths behind, “Can New Zealanders buy
property in Australia?” I’m also going to cover borrowing and how finance works
between the two countries, plus I will share with you
at the end of this video, how the construction
process works, in Australia. You will be shocked at
what I have to tell you. After watching this video, make sure you leave a comment sharing the myth you have
heard about New Zealanders and why they can’t buy
property in Australia. So let’s get started. My name is Mark Scarrott and
I’m the CEO of Key to Australia and we help Australians and
New Zealanders purchase homes and investment properties in Australia. We have over 35 years of experience. If you would like help with
purchasing an Australian investment property or a home, contact us in the description field below. So, the big question I have for you is, Can New Zealanders buy
property in Australia? There are two parts to this and it all depends on whether
you are a New Zealand citizen or a permanent resident. Firstly, if you are a New Zealand citizen, you can buy new or second
hand properties in Australia. We have a Foreign Investment
Review Board or the FIRB, that gives all New Zealand
citizens an automatic approval and there is no fee. Australia has introduced a 7%
surcharge for foreign buyers, which is added to the
existing 3% stamp duty, and therefore the rate is 10%; however, this can be reduced to 3% for New Zealand citizens
following certain criteria. This is what we do for our
clients on a daily basis. Secondly, if you are a New
Zealand permanent resident but not a New Zealand citizen, you can buy property in Australia but you can only buy brand new. There is a $5000 fee payable to the Foreign Investment Review Board and the stamp duty is 10%. You can not reduce your stamp duty, like a New Zealand citizen can. So now you know that New Zealanders can buy property in Australia. The next part of the question is: Can New Zealanders
borrow money in Australia to buy an investment property? Most banks in Australia
will lend up to 80% on an investment property in Australia for New Zealand citizens and 70% for non-citizens. The same rules apply in Australia and New Zealand for the
servicing of clients. So make sure you keep
a good credit rating. So, 20-30% deposit plus
costs comes from either borrowing against a
property in New Zealand or from funds you have available. Once you have finance
approved in Australia and the deposit ready in New Zealand then you are ready to
finance the property. In this example, we will use a new build. So, a land and a build contract. This is to construct the property. So, how is the property financed? The funds from New Zealand are transferred to an Australian solicitors trust account. Once the property is fully approved, land settlement then takes place
using the New Zealand funds and part of the Australian loan. The bank provides a letter confirming that the bank holds sufficient funds to complete the construction. Now we’re actually getting
to the exciting part, which is the construction of the property. The property is constructed
using progress payments, such as, base of the property. The framing of the property. Enclosing of the property, things like your brick
walls and tile roof. The full fit out, including the kitchen,
bathrooms, fixtures and fittings. And then there’s finally, the completion. The construction of a new building usually takes 14 to 16 weeks. Yes, that’s right. 14 to 16 weeks. Penalties will apply to the
builder if it takes longer than what is actually
stipulated on the contract. This is quite the contrast
to building in New Zealand, as it can take 28 to 52 weeks to complete. At each stage, an invoice
is provided by the builder and council approval is issued along with photos of the progress. This then needs to be signed off by you and then sent to the bank.
(exciting bouncy music) The bank has a valuer to confirm the stage before the builders invoice is paid, and no time has more been paid
than what has been completed. This gives you great
protection as an owner. At Key to Australia we arrange
a buffer in the mortgage to cover interest during construction. So it doesn’t affect your cashflow and you don’t have the headache of suddenly realizing you
need to find more money. Finally, a completion, a
certificate of occupancy is provided by the council, prior to the bank making
the final payment. Congratulations. You now own an investment
property in Australia, even though you are a New Zealander. The next time someone says to you, “New Zealanders can not
buy property in Australia.” Send them this video and
I’ll explain it all for you. If you’d like to know more about buying a property in Australia, we are holding an Australian
investment property seminar in Auckland on Tuesday,
the 3rd of December. It’s at the Waipuna Conference
Center, in Mount Wellington. Make sure you click below to register. I’ll be sharing with you all the details on how to purchase an
investment property in Australia and how to take advantage
of the high yields and positive cash flow opportunities. That’s right, positive cash flow. So if you’re a New Zealander looking to purchase an Australian home or an investment property, Key to Australia can help you all the way through the process. From finding a property,
finance, construction, accounting and property management. We will be with you every step of the way. If you have any queries or
questions regarding this video or anything else about buying
a property in Australia from New Zealand, add a comment below and I
will answer them for you. Also, if you’ve liked this video, make sure you share it with your friends. Thank you very much for watching.

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