Can New Zealanders Buy Property in Australia?

Can New Zealanders Buy Property in Australia?

Do you live in New Zealand?

Are you a New Zealand citizen or resident?

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.

Can New Zealanders actually buy property in Australia?

You can either watch the video below or read the transcript.

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Can New Zealanders 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 New Zealand and Australia.

I will also share with you, how the construction process works, in Australia, because 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.

If you are from New Zealand and would like help with purchasing an Australian investment property or a home, contact us today.

We also offer free property consultation to see if we can help you reach your property investment and wealth creation goals.

Are you a New Zealand citizen or resident?

There are two parts to this and it all depends on whether you are a New Zealand citizen or a permanent resident.

New Zealand citizen

Firstly, if you are a New Zealand citizen, you can buy new or second-hand properties in Australia.

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.

New Zealand permanent resident

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.

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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.

The 20-30% deposit plus costs come from either borrowing against 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.

For this example, we will use a new build, which is a land and build contract

This is to construct the property.

How is the property financed then constructed?

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;
  • 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.

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.

The bank has a valuer to confirm the stage before the builder’s invoice is paid, at 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 cash flow and you don’t have the headache of suddenly realizing you need to find more money.

Finally, on 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

Wow, how great is this, owning an investment property in Australia even though you’re a New Zealander.

The next time someone says to you, “New Zealanders can not buy property in Australia.”

Send them to this article and I’ll explain it all for you.

If you’d like to know more about buying a property in Australia, come along to one of our New Zealand property investment seminars.

Buying property in Australia from New Zealand is a great way to increase your property portfolio.

New Zealand is very expensive and requires a 30% deposit for investment property, where Australia is only 20%

If you would like to meet with one of our consultants based in New Zealand and talk about buying property in Australia enjoy one of our free property consultations.

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New Zealanders purchasing property in Australia

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.

We help Kiwis and Aussies find a property, help with finance, construction, accounting and then property management services if you would like our help managing the tenant.

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 article, make sure you share it with your friends.

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