Can NZ citizens buy an investment property in Australia?

Any general questions you might have in regards to loans and finance.
Nancy007
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Can NZ citizens buy an investment property in Australia?

Postby Nancy007 » Tue Apr 16, 2019 6:47 pm

Hello,

I’m a New Zealander from Hamilton. I’m working as an IT specialist in a decent sized tech firm. I and my wife are planning on moving to Australia in a few years’ time once we think we’ve made enough. For now, we want to purchase an investment property that we want to use as a branch office. We’re looking for a property around Maryborough that’s in the price range of AUD 600,000. We have around AUD 24,000 saved up for this.

My friend who works for the bank says that foreigners usually have to pay additional charges to the Australian government to purchase a property in Australia. Sounds fair enough, but I wanted to know whether this policy applies for New Zealanders as well.

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Otto Dargan
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Re: Can NZ citizens buy an investment property in Australia?

Postby Otto Dargan » Tue Apr 16, 2019 6:55 pm

Hi Nancy,

Welcome to the forums.

New Zealand citizens and Permanent Residents living in NZ or Australia, are eligible to take out a home loan that they can use to invest in Australian real-estate.

Although some lenders charge a higher interest rate to foreign nationals, we have a lender that can offer NZ citizens the same interest rates as an Australian citizen.

If you’re moving to Australia, you might actually be eligible to borrow up to 95% of the property value.

However, depending on the state you're moving to, you will need to be in the country for at least 200 days to be eligible to avoid the foreigner stamp duty surcharge.

Please call us on +61 2 9194 1700 from overseas or on 1300 889 743 from within Australia.

You can also complete our free assessment form and one of our Australian mortgage brokers will call you to discuss your situation.

Cheers,
Otto
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Nancy007
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Joined: Tue Apr 16, 2019 6:43 pm

Re: Can NZ citizens buy an investment property in Australia?

Postby Nancy007 » Tue Apr 16, 2019 7:15 pm

Hey, That’s great. I was thinking of using the equity of my property here in New Zealand to purchase the property in Australia. Is this possible?

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Otto Dargan
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Re: Can NZ citizens buy an investment property in Australia?

Postby Otto Dargan » Tue Apr 16, 2019 7:17 pm

Hey Nancy,

Yes, it is possible!
But please note that the process will involve 2 separate home loans.
Firstly, you need to refinance your mortgage in New Zealand in order to release equity.
We cannot assist with this because our Australian credit licence (ACL) only allows us to deal with finance providers in Australia. You need to seek assistance with your bank in NZ.
The other home loan will be in Australia with an Australian bank that you end up choosing to buy a property using the equity from your NZ property as a deposit.
  • You can borrow up to 60% of the value of an NZ investment property.
  • You can borrow up to 80% of the value of an NZ home, if you’re living in NZ.
  • Borrowing more may be possible with specialist lenders at slightly higher interest rates.


Cheers,
Otto
Otto Dargan
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P | 1300 889 743
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Nancy007
Posts: 3
Joined: Tue Apr 16, 2019 6:43 pm

Re: Can NZ citizens buy an investment property in Australia?

Postby Nancy007 » Tue Apr 16, 2019 7:18 pm

Sounds reasonable. One last question! Is it true that New Zealanders are also eligible to receive grants on purchasing their first home?

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Otto Dargan
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Re: Can NZ citizens buy an investment property in Australia?

Postby Otto Dargan » Tue Apr 16, 2019 7:35 pm

Hey Nancy,

When New Zealand citizens arriving in Australia, they’re automatically granted a special visa known as a Special Category Visa (Subclass 444).
Because New Zealand citizens are considered – for all intents and purposes – to be permanent residents of Australia, they are eligible for the first home owners grant (FHOG).

However, it's always best to check with the relevant office of state revenue to confirm that this is still the case. Rules around FHOG can change on a regular basis.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts


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