We know New Zealand is a great country to live in and there are some great New Zealand mortgage brokers here for anyone buying within our beautiful country.
A mortgage broker can be your trusted adviser providing introductions and connections to help you with the whole process of buying a home or an investment property and getting the most suitable finance in New Zealand too.
Buying Rental Investments
New Zealand has some great locations and this may be your major decision when buying a property investment, but more often we see people that buy based on other factors.
Location is always important with any property purchase, but the right location for an investment might be quite different from the right investment for a home to live in.
Many investors are focused on yield; in essence meaning they want the maximum rental income from the property with the lowest value. Unfortunately, properties with high yields are often those properties in not very good locations or with other issues.
Most Kiwis will settle with good mainstream properties which are in quite reasonable locations and have quite a reasonable yield.
Plus there are also some very good real estate agents too.
We would normally suggest that you have a talk with us (mortgage advisers) first and get an amount that you can spend. Then crunch the numbers and look at various properties before committing to anything.
What Are The Lending Rules?
The rules have changed recently and you need to be aware of them.
The key change when investing in property is that The Reserve Bank has introduced a rule whereby you need a 40% deposit, unless you are buying a new build.
New builds require less deposit with 10% being very common although a 20% deposit will ensure you get the better interest rates with some banks.
You can also finance a rental property with one of the non-bank lenders which do not need to apply those same rules, but whom are often a bit more expensive.
You mortgage broker will be able to explain the latest rules and provide advice on what you can do. Often there will be more than one way, but a good broker can explain the options to you.
Understanding Property Investment In New Zealand
Property investment in New Zealand is really quite simple and is available for residents and non-residents; albeit there are some tax implications and bank rules that you will need to consider.
The great thing is you can still buy investment properties that produce enough rental income to cover a reasonable mortgage, plus most places around New Zealand are seeing some significant price gains over time which add to the overall return that you may expect to receive.
If you are considering property investment, then you need to speak to a mortgage broker that really understands what’s needed and also to an accountant to ensure that things get set up properly.
Like we mentioned, property investment in New Zealand is quite simple but that still means you need to get it right and the first step is to get the right advice.
New Zealand Mortgage Brokers
Brokers have been around for quite a long time in New Zealand and were once known as the ‘go-to people’ when the banks said “NO” but are now seen as the preferred option due to the knowledge that a good broker has and the choice they can offer.
Good New Zealand mortgage brokers will offer more help than just finding the best home loan, they will also be able to offer advice on all the facets of buying property and help connect you with the other professionals that you will need.
You can leave the financial issues to the New Zealand mortgage brokers who will know which bank will suit your situation the best.