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Thread: Non-resident buying ?

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  1. #1
    Join Date
    Sep 2004
    Location
    London, UK
    Posts
    45

    Default Non-resident buying ?

    I visited NZ 2 years ago for 3 months and loved it and planned to move. The plan is still there but due to a uni degree pending is on hold for a couple of years.

    The idea is to look into buying a property now, renting and then having something before prices go even more crazy.

    Is there any good web sites regarding a non-resident buying and renting out, or is anyone aware of any restrictions?

    Grateful for any advice.

    Thanks,

    Daffy.

  2. #2
    Join Date
    Sep 2004
    Location
    San Diego, CA
    Posts
    267

    Default Non-resident buying

    Hi! We considered this option, as we can't get down to our house for at least 6 more months. When we bought a house recently - and by the way, you cannot get a loan from NZ without having some good stamps in your visa, work, PR, etc. - we went with a home equity loan from our CA house, plus the interest rates are much better here, but let me get back on topic. We had a solicitor (lawyer) that we were referred to by the real estate agent to help handle our transaction (I don't think you can do things like this without one) and he assured us that there are no restrictions if you are buying just an individual home (and not a bunch of land with it, but I don't know the maximum acreage) as a non-res, and you can rent it out, there are agencies to find you a renter even (at a fee, of course). It was really comforting to have our solicitor in our pocket, so to speak, and very reasonably priced for the wealth of info he gave us. Long story short, when you are seriously ready to buy a property, someone will no doubt assist you in finding a solicitor. Hope this helps! :cool

  3. #3
    Join Date
    Aug 2004
    Location
    Los Angeles to Palmerston North
    Posts
    107

    Default

    Just as SoCal Gal said, it can be done! I am a non-resident but, intent on moving to NZ, I visited in June for the sole purpose of property-shopping. I had contacted several real estate agents prior to arriving, one of whom was invaluable in referring me to a mortgage broker and a solicitor. The mortgage broker was able to find a bank who would lend to a non-resident. However, many banks will not lend to a non-resident, so just keep in mind that your options on loans might be more limited than in your home country. Also, I had to put 20% down instead of the normal 5% or 10% and also establish a secured deposit of another $7k (which I must keep until the bank feels certain that I am not going to default). So there are some additional hoops you have to jump through, but its certainly doable. As far as renting out, it was a breeze. My realtor referred me to another realtor who does property management and prior to settlement she had already found tenants and had them sign a contract for a fixed term, so that they move out when I need them to. The rent does not quite cover the mortgage, but its close. Now (and over the next few months) may be a good time to buy, since from what I hear the market is a lot softer than it has been in the recent past.

    Good luck!

    Melissa

  4. #4
    Join Date
    Aug 2004
    Location
    christchurch (formerly essex)
    Posts
    2,749

    Default

    the maximum land you can buy is 5 acres without residency

  5. #5
    Join Date
    Aug 2004
    Location
    Ashley NZ
    Posts
    540

    Default

    We have been tols that we can buy what ever we wand so long as our income is sufficient to support the mortgage. However we have been warned that some of the lending companies aren't as favourable to Non residents as others!!

    We are waiting till we get PR, we have a nice rental and want to spend time exploring not house hunting

  6. #6
    Join Date
    Aug 2004
    Posts
    349

    Default

    This article outlines what's possible

    http://www.enz.org/getting-a-mortgag...w-zealand.html

  7. #7
    Join Date
    Aug 2004
    Location
    christchurch (formerly essex)
    Posts
    2,749

    Default

    The govt. hasa a restriction for overseas/non resident buyers of 5 acres, am sure of that because we had to look into it as part of a proposed business venture. nothing to do with the mortgage companies

  8. #8
    Join Date
    Sep 2004
    Location
    London, UK
    Posts
    45

    Default

    Thanks for all the input, all checkout agents around the Taupo area.

    I have the funds to buy so don't need to worry about mortgage issues, just transferring funds and getting out there to do the deal.

    I've heard it's a lot quicker and easier than buying in the UK.

  9. #9
    Join Date
    Aug 2004
    Location
    christchurch (formerly essex)
    Posts
    2,749

    Default

    Thats for sure, here you agree a price subject to whatever conditions either side want, a date is set on these conditions being met, it then goes unconditional and neither side can back out, then it completes on the date. Really approve of that system.

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