Yes, you can! If you’re an NZ citizen buying property in Australia, everything works the same as if you were an Australian citizen buying property in Australia. You may even be eligible for the first homeowner’s grant.
However, if you are not an NZ citizen, depending on your visa and residence status, there are some restrictions for foreigners wanting to buy property in Australia.
Find below some advice on buying your dream home in Australia and some smart tips to avoid paying more than you need in fees and charges.
Please note: I am not a financial adviser, accountant, mortgage broker, or property specialist. I have collated all the information in this post online. Please get financial advice from a specialist if needed.
Use your KiwiSaver towards your home deposit for your first Australian home! First Super and First Home Super Saver (FHSS) – lets you withdraw some of your KiwiSaver for the deposit for your Australian first home. Read more here.
In this post, you will find helpful information on:
Yes, you can do so as an NZ citizen living in Australia with an SCV.
As an NZ citizen living in Australia, you are treated as an Australian citizen when it comes to buying a home. You can get a mortgage at the same rate and are eligible for the First Home Owners Grant (FHOG) and a possible stamp duty waiver.
There are some restrictions if you are a non-resident, e.g., an NZ citizen not already living in Australia (who hasn’t processed through border control and received their SCV). Non-residents must get approval from the Foreign Investment Review Board (FIRB) before buying a property. The house must be your primary residence and for you as a home. This does not apply to NZ citizens living in Australia.
If you don’t intend to live there full-time or buy several properties in Australia as an investment, they must be new-build properties. These laws are designed to ensure a sufficient supply of new housing stock across the country.
However, suppose you want to purchase a property in NSW. In that case, you must have been living in Australia for at least 200 days within 12 months before the contract date to be exempt from the 8% surcharge purchaser duty on top of any transfer duty. Read more in my surcharge purchaser duty law change post.
Of course, you can start looking for your new Australian home from NZ. The top two real estate websites in Australia are:
When buying a home, it’s essential to conduct thorough research. In terms of getting comprehensive comparative sales information, it’s hard to go past the Home Price Guide, available from Australian Property Monitors (APM), a joint venture between HWW Limited, the publishers of Your Mortgage Magazine, and John Fairfax & Sons.
The Home Price Guide lists sales details of individual residential properties. Each standard guide lists monitored sales in the previous 12 months in the postcode of your choice. If the property you are purchasing is in the database, you can see how much the current owners paid for it, whether it has been put to auction since it was purchased, and, in some cases, what the highest bid at an auction was.
Your deposit amount will vary depending on whether you are living in NZ or Australia. If you are living in NZ, your deposit will be approximately 30%. If you have moved to Australia and are living there, you should be able to buy a property with only a 5% deposit. If you are living elsewhere, it’s quite challenging to purchase a property in Australia, as it’s considered non-resident lending.
Banks in Australia can’t lend on property in New Zealand, so if you have an existing property in NZ you want to leverage off, you’re going to have to talk to your NZ bank or a mortgage broker in NZ. Read more below.
No. If you are a New Zealand citizen living in NZ or Australia, your interest rates will be the same as the open market, e.g. the same as if you were an Australian citizen.
The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist home ownership across the country. For eligible borrowers, it’s a great start to life as a property owner.
The grant differs in each state and territory, and in most places it applies to new homes only and is valued between $7,000-$26,000.
The Australian government’s First Home Owners Grant (FHOG) and other benefits are available to permanent residents as if they are citizens of Australia. Because NZ citizens are considered to be permanent residents of Australia, they are eligible for the grant.
FHOG does not take into consideration NZ property, only property you’ve owned in Australia.
Read more in my Are New Zealand citizens eligible for Australia’s First Home Owners Grant? post.
Obtaining a mortgage in Australia is similar to that in New Zealand. You will need to figure out how much you can borrow based on your income and expenses. You will need a deposit, which is usually a minimum of 5 per cent of the property’s value. You also need to pay for stamp duty on the property, which will cost several thousand dollars, depending on which state you live in.
Want to know if you are likely to get a loan right now? UNO has created a questionnaire where you can input your financial information and determine if you are currently eligible for a home loan/mortgage in Australia.
You will be asked about your residence status, where you currently live, what your plans are, how much you plan on spending on your new home, your deposit amount, and your income, to help calculate your loan-to-income ratio (LIR) and point you in the right direction.
The questionnaire takes about 30 seconds, and there is no obligation; you can come back and complete it as many times as you like as your moving to Australia process progresses and your individual circumstances change.
Or read my Australian mortgage post and find out more about UNO and how they can help you.
Financial institutions in Australia will usually check your credit rating in New Zealand. If you are unsure about your credit file, you can obtain a free copy from Equifax.
To ensure your application is processed as quickly as possible, it is essential to have all your paperwork ready. You’ll need:
You will likely be asked to complete an identity check by your conveyancing practitioner for land or property, which can be done at an Australian Post shop. Read more about identity checks and the ID requirements you need to meet on the Australia Post website, identity checks for buyers & sellers.
If you own a property in NZ and want to leverage it. You need to get your NZ bank to release the equity in your NZ property (refinance your mortgage) so it can then be used as a deposit for your property in Australia.
Australian banks are unable to lend on New Zealand property. Although we have similar banks in both countries, their systems are completely different and don’t communicate with each other. So you are going to have to apply for a loan in NZ and a loan in Australia to be able to leverage the equity.
Yes, you can! There is a significant history behind this, but once again, New Zealanders moving to Australia are able to transfer their KiwiSaver to Australia and use some of it as a deposit for their first home. You must meet the criteria set out by the ATO and ensure that you set up the correct account with the appropriate super fund provider.
The ATO says, ‘If you transfer an amount into an Australian super fund from a KiwiSaver scheme, the amount will be an eligible contribution (except for certain amounts)’. There is no requirement for you to be an Australian citizen, Australian resident or an Australian resident for taxation purposes for the FHSS.
Find out what the ‘certain amounts’ are, what super fund provider you need to register with, what you need to know about the First Home Super Saver (FHSS), the KiwiSaver to super fund transfer process and how to withdraw $15,000 to use as your first home deposit in Australia (up to $50,000) in my KiwiSaver and First Home Super Saver (FHSS) post.
Stamp duty is a tax on property transactions that is charged by each state and territory and is remitted directly to the state government. The amounts can and do vary. The stamp duty rate will depend on factors such as the property’s value, whether it is your primary residence, and your residency status.
You can calculate the stamp duty you may have to pay on your property using this Stamp Duty Calculator.
First-time homeowners purchasing in Australia will likely be eligible for a stamp duty waiver. However, it will take into account whether you own or have owned any property anywhere, including New Zealand. So, if you have owned or currently own a property, you won’t be eligible for the stamp duty waiver.
There are different purchase amounts that need to be adhered to depending on the state you are buying in, e.g. in Queensland, if you purchase a home for $500,000 or less, you will pay no stamp duty. If you are purchasing a property between $500,000 and $550,000, you get a discount.
Stamp duty varies from state to state. You can read more about the stamp duty in the state you are planning to move to, including its exemptions and concessions, here in this article: Getting the most out of stamp duty exemptions in your state.
If you own an asset overseas, you may have to pay Australian tax when you sell it. Therefore, you need to keep appropriate records.
If you acquired an overseas asset before becoming an Australian resident, you are taken to have acquired the asset at the time you became a resident.
Similarly, if you cease to be an Australian resident while holding an overseas asset, you are deemed to have disposed of that asset at the time you cease to be a resident.
To accurately calculate the capital gain or loss, ensure you keep a record of the value of your asset at these times. This is a complex area of tax law, and exemptions may apply (including the CGT main residence exemption below).
However, your accountant can make you a temporary resident for tax purposes, exempting you from tax on your overseas income. To understand this strange loophole, I recommend you read Beyond Accountancy’s post: NZ taxes: something every Kiwi in Australia needs to know.
If you sold assets during the year, such as property or shares, you need to work out your capital gain or loss for each asset. You pay tax on your net capital gains.
You can use the CGT calculator on the Australian Government ATO website.
In Australia, your family home (main residence) receives favourable tax treatment. Most importantly, it is exempt from Capital Gains Tax (CGT), and this exemption can extend to your New Zealand home if it continues to be treated as your main residence.
This means you don’t need to rush into selling your NZ property when you move. Under the 6-year rule, you can keep treating it as your main residence for up to six years, giving you time to sell your NZ home before buying a new property in Australia.
You can read more about the CGT main residence exemption and the 6-year rule, including how to apply it in your tax return, on the ATO website.
As mentioned above, as a New Zealand citizen living in Australia, you can choose to be an Australian “temporary resident” for tax purposes.
There can be some benefits for New Zealand citizens living in Australia who are considered temporary residents for tax purposes. This is because, as temporary residents, they may be eligible for certain tax concessions and exemptions, including:
However, it’s essential to note that these benefits depend on individual circumstances and may not be applicable to all temporary residents. It’s always best to consult a qualified tax professional who can provide tailored advice based on your situation.
Find out how to get the best foreign exchange rate and save on fees.
If you already own a home in New Zealand and plan to sell it and buy in Australia, then educating yourself on foreign exchange is essential. The same goes for transferring any money from NZ to Australia. Why throw away your hard-earned cash?
To give you an idea of how much you could save, XE has compared three major banks in New Zealand for a $1,200,000 NZD / AUD transfer. XE would have saved you between $9,070 and $25,870, depending on which bank you use.
**This comparison was made on 21.08.17 by speaking to the foreign exchange teams at 3 of the leading banks.
You will save a lot of money by using an online foreign exchange company to exchange your NZD for AUD and then deposit them in your Australian bank account. Banks will charge you a great deal to convert and transfer your money.
Read more about using an online foreign exchange company and how online money transfer works.
Do you want to purchase a home in Australia from New Zealand, ready for you to move into when you arrive? Yes, you can, but there is an extra tax to pay, and you will need some help…
If you are purchasing property in Australia from NZ, you are considered a foreign buyer and must pay a stamp duty surcharge of 7% to 8% (varies from state to state).
Property purchases in the Northern Territory, the ACT, or Tasmania are exempt from foreign buyer stamp duty.
The rule is that if you are a New Zealand citizen residing in Australia and hold a special category visa (SCV) under the Migration Act 1958 (which most New Zealanders do), you are exempt from paying additional foreign taxes.
If you are a New Zealand citizen residing in New Zealand and enter into a contract to purchase land in Australia, you will not be a holder of an SCV and must pay the additional surcharge of 7% to 8%.
If you plan to take a plane trip to sign the contract and avoid paying the duty, think again! AFAD will also apply if the evidence indicates that the purpose of entry into Australia is to avoid paying AFAD by obtaining an SCV.
Therefore, you are required to get approval from the Foreign Investment Review Board (FIRB) before purchasing a property, be prepared for the additional 7-8% tax, and are generally only allowed to buy new dwellings or off-plan properties, such as apartments and houses, that have not yet been lived in. Vacant land that can be developed is also permitted to be purchased as a non-resident.
The Australian Taxation Office (ATO) offers online services for foreign investors to manage their obligations related to Australian investments.
In addition to the application form, you’ll be required to pay an application fee that is dependent on the cost of the new property or vacant land you wish to purchase.
Once submitted, it generally takes less than 30 days for your application to be approved or declined.
While I wasn’t able to find the process online, UNO Home Loans explained that to purchase property in Australia, engaging in mortgage and conveyancing services was fundamental.
When buying property, the sale-to-settlement process can become complicated and overwhelming quickly. Conveyancers save you time and money, taking care of important legal documents such as contracts and site visits so you can quickly and easily move into your new home.
There are various ways to approach this, but this is one method. Before approaching the companies below, ensure you’ve researched the type of home you want and its associated costs.
We recommend the companies below. They have excellent independent reviews, so you can trust their team, charges, and processes.
If you want to buy a home in Australia while still living in New Zealand, you will need to get an expat mortgage. This is one of the most challenging home loans to obtain.
Obtaining a home loan depends on several factors, including your household income, country of residence, deposit amount, and whether your circumstances align with the different bank policies. All banks in Australia have different policies and calculations they use to evaluate a loan application.
This is where UNO comes in! What UNO does for you is assess your individual circumstances, determine which banks are most likely to lend to you, and then approach them on your behalf.
UNO proactively look after customers’ largest household expense, their mortgage and or /home loan. Using loan score technology, UNO analyses your mortgage to save you time and money wherever possible. As experienced brokers, their job is to negotiate the best mortgage deal on your behalf.
UNO prides itself on matching customers to the right home loans across its growing panel of 20 lenders, whether you are purchasing a property or refinancing. Plus, they’re specialists in helping New Zealand citizens to buy Australian property, whether based locally or in Australia, so they’re familiar with the process and how they can best serve your needs.
Do you want to know if you’re eligible to buy a property in Australia from NZ? Do you want to move straight into your own home in Australia?
Simply complete this 30-second questionnaire and find out if an Australian bank will give you an expat mortgage.
You will be asked about your residence status, where you currently live, what your plans are, how much you plan on spending on your new home, your deposit amount, and your income, to help calculate your loan-to-income ratio (LIR) and point you in the right direction.
The questionnaire takes about 30 seconds, there is no obligation, and you can come back and complete it as many times as you like…
Or, if you’d prefer to speak with a real person, you can complete this short Buyer Readiness Quiz (just 30 seconds, 6 simple questions). You’ll receive personalised feedback on your situation along with guidance on your next best move.
At the end of the quiz, you’ll have the option to book a free, no-obligation chat directly in Paul Davey’s diary. Paul is Moving to Australia’s dedicated mortgage broker, specialising in helping New Zealanders buy their new homes in Australia. He’s incredibly knowledgeable and genuinely helpful, and worth completing a little quiz to talk to!
For more information on getting an Australian mortgage, UNO or Paul Davey, read my Australian mortgage post.
Conveyancers take the complication out of the property so you can save time and money where it matters most.
From contract reviews to order searches and title transfers, conveyancers take care of the complex aspects of buying and selling, so you can buy with confidence and peace of mind. Whether you are buying property in Australia from NZ or while living there.
While conveyancers can help you with an array of services, here are some of the most common:
The above companies will make buying a home in Australia from NZ a reality!
The below posts might interest you:
If you’ve read the above content and the answer to your question isn’t there, please write a comment below, and I’ll research the answer for you.
If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Hi… I’m JJ Smith.
I’m the creator and editor of Moving to Australia and have been for 17+ years! I know everything there is to know about New Zealanders moving their families and life to Australia. Either from first hand experiences and research or through the questions from visitors to this website… and I’m here to help!
I love helping people via Moving to Australia.
Providing the answers to questions we all ask when deciding whether to make the move from New Zealand to Australia. Even giving individual specific advice where needed.
I have learned a lot over the last 17+ years from personal experience and through interacting with visitors. This is my job, making sure the information here is comprehensive and up to date.
If you would like to help me, you can use one of my referral partners.
© 2008 - 2023 Copyright Cybersmith Ltd. All content is copyright.
Design by ThemeShift.
Anita
July 7, 2022 at 11:37 amHi,
I have a couple of questions I was hoping someone could help me with. I have had conflicting information.
I am a Kiwi, who is about to purchase a home in Aussie to live in. I have been told I have to pay stamp duty???
To get the 444 visa, I was told that I need to go to an Immigration Lawyer to organise this. But from research I have done, it is a live and work in Aussie visa and I don’t need to do anything except when I fill in my arrival info at the airport and complete the arrivals card saying I am coming to Aussie permanently.
Your thoughts would be very much appreciated.
Regards,
Anita
JJ Smith
July 8, 2022 at 1:20 pmHi Anita,
Thank you for your email.
Are you already in Australia?
The rules are very different if you are still in NZ and trying to purchase a property.
Until you process through border control you do not have an SCV. You would have to pay stamp duty if you are not currently living in Australia.
I’m happy to look into it further once you have confirmed where you are currently living.
Thanks
Anita
July 8, 2022 at 1:37 pmHi JJ,
I was during the week, but have now since returned to NZ to finish up in my job and to pack up my things. I signed an agreement on the house yesterday.
Thank you for clarifying this, it is a huge help.
Anita
July 11, 2022 at 3:56 pmHi again,
I have tried twice to ring Australia visa/Homeaffairs – once I was on hold for 1 hour and 20 minutes then got cut off. Then I rang back and gave up after 1 hour and 30 minutes on hold.
I am wanting clarification on the below:
If I go to Brisbane and get the SVC at the airport, can I then purchase a property without stamp duty or tax?
I have been told that I need a Special Visa 444. But I have no idea what this is or how to go about getting it.
Thanks
JJ Smith
July 15, 2022 at 12:23 pmHi Anita,
Thank you for your email.
Are you using a mortgage broker, as they will be able to answer your question depending on your particular circumstances?
However, in general, first home owners, purchasing for the first time in Australia will more than likely be eligible for a stamp duty waiver. However, it will take into account if you own or have owned any property anywhere including New Zealand. So if you do own, or have owned a property previously, then you won’t be eligible for the stamp duty waiver.
There are different purchase amounts that need to be adhered to depending on the state you are buying in, e.g. in Queensland if you purchase a home for $500,000 or less you will pay no stamp duty. If you are purchasing a property between $500,000 and $550,000 you get a discount.
Stamp duty varies from state to state. You can read more about the stamp duty in the state you are planning to move to and its exemptions and concessions here: https://www.homeloans.com.au/news/getting-most-out-stamp-duty-exemptions-state.
You will automatically be granted an SCV against your passport every time you enter Australia as an NZ citizen and process through border control in Australia. You can read more here: https://www.movingtoaustralia.co.nz/australian-visa/.
Hope the above helps.
Dave
June 12, 2022 at 12:18 pmGood morning,
I read questions above regarding kiwisaver funds not available to be used for property buying. I am an NZ citizen and I’m wanting to use whatever money I have in kiwisaver (ASB) to put down as my deposit but seeing the answers above that it’s not possible and not allowed, would you know (or suggest) if it is possible to just close the kiwisaver account and get the money, or any other way like transferring that money to a superfund australian account as a work around to use the money when it’s already in a superfund account? Will this work? I just need to use the money as my deposit.
Thank you.
JJ Smith
June 13, 2022 at 10:38 amHi Dave,
Thanks for your comment.
Unfortunately there is no way to use your KiwiSaver as a deposit for a home in Australia.
You are able to transfer it to Superfund but you aren’t able to be used the money for a deposit for a home.
After you’ve been living overseas (not Australia) for 1 year, you can take most of the savings from your KiwiSaver account (https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/getting-my-kiwisaver-funds-early/getting-my-kiwisaver-funds-when-i-move-overseas).
The only option for Australia is to transfer your KiwiSaver funds to an Australian superannuation scheme.
You should be eligible for a FHOG if you buy a new home, which will help towards a deposit: https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
You can go through the UNO home loan questionnaire and see how far away are you to being able to get and service a mortgage: https://www.movingtoaustralia.co.nz/buying-a-house-in-australia/#GettingamortgageinAustralia.
The only other option I can see is buying a home in NZ using your KiwiSaver as a deposit, then selling the property and taking the money to Australia. However, this will only work if you are not living in Australia, as you would have to pay capital gains tax on the sale and you would have to buy carefully and have a plan to add some value before you sell to make sure you don’t end up losing money.
Sorry I couldn’t be of more help.
Please feel free to email me back any further questions you have.
Thanks
Margaret Fowler
May 6, 2022 at 11:18 pmHi, I am a New Zealand citizen who wants to invest in property in New South Wales and I would like to know if I need to be physically in New South Wales to purchase a house?
JJ Smith
May 12, 2022 at 12:04 amHi Margaret,
Thank you for your comment.
I depends on a number of different factors. I’m still trying to get my head around this side of buying property in Australia.
As an NZ citizen you are legally able purchase property in Australia from NZ.
Do you need an Australian mortgage or are you a cash buyer?
You are able to pay a conveyancer, someone to manage the purchase contract on your behalf, which means you wouldn’t need to physically be in Australia to purchase the property. This post explains what a conveyancer does, how the process works and how much it costs: https://conveyancing.com.au/articles/what-does-a-conveyancer-do.
And it depends on what you plan to do with the house. If you plan on renting it out, you would physically need to visit a bank to open an Australian bank account.
My brother in-law flew to Australia to purchase the house, sign the agreement, open the bank account and then returned to NZ until they were ready to move over.
Once I’ve got more information, I can give you a recommendation.
Thanks
Matthew
April 27, 2022 at 10:01 amHi,
Thanks so much for the information so far. We are planning on moving to Queensland. I’m a NZ Citizen, my partner has Dutch citizenship as we are currently living in the Netherlands. Do you know if it will be a problem for both of us to buy a property together? I think we should have enough cash to buy a house outright without a mortgage. If we got married, would a NZ partner’s wife be entitled to the same rights for buying a property?
Kind regards
Matthew
JJ Smith
May 13, 2022 at 1:24 amHi Matthew,
Thank you for your comment and sorry for the delay in replying.
Unfortunately I have not been able to find an answer to your question.
I can’t find any information for a Dutch citizen buying property in Australia or a foreign investor buying property with a citizen, which New Zealanders are considered.
I’ve forwarded your question onto UNO home loans and will forward their reply when I receive it.
Thanks
Emmanuel
April 27, 2022 at 8:59 amHi, wanted to know if I can use the equity of my property in NZ to buy a property in Australia. Thanks.
JJ Smith
May 3, 2022 at 2:32 amHi Emmanuel,
Thank you for your comment.
Yes you can use the equity in your home for a deposit. You would need to refinance your mortgage with your NZ bank and borrow money to use for a deposit for your new home in Australia.
Have you read my Australian mortgage post: https://www.movingtoaustralia.co.nz/australian-mortgage/?
Find out if you’re eligible for an Australia expat mortgage by completing the 2 min UNO home loan questionnaire on the above post.
Please feel free to email me back any further questions you have.
Good luck with your move.
cindi
April 12, 2022 at 1:57 amHi, If I am a first home buyer and can pay in full for the house and I am looking at a home that is available do I physically have to have already moved to oz from NZ? I will fly over and look and choose as can stay with family.
I was planning to move over once home is ready to move into.
Alternatively if is getting built can I pay deposit and move over once is almost completed prior final settlement – if not even lending from banks? Will this be considered overseas buyer? I have an australian passport and am a citizen also. What determines overseas buyer?
I am worried about any negatives or extra costs involved? I have not owned a home in nz. Thus wont need to pay stamp duty but what do I need to know?
Thanks
JJ Smith
May 5, 2022 at 1:58 amHi Cindi,
Thank you for your comment and sorry for the delay in replying.
I am currently researching the best way for New Zealand cash buyers to purchase property in Australia, either from NZ or after they arrive. I am starting to get my head around it.
You will not be considered an overseas buyer as an Australian citizen or NZ citizen, even when living in New Zealand.
I recommend you read this post on invest in Australia from NZ. This covers a lot of your questions: https://www.gra.co.nz/services/investing-in-australia-from-new-zealand.
Please let me know if you have any advice for visitors in a similar situation to you or anything else I can help you with.
Good luck with your move.
Corey
April 3, 2022 at 6:56 amHi JJ
Thank you for your news letter it is great to be able to know what is need when moving to Australia
We are looking at moving to Australia either at the end of the year or early 2023 we will be wanting to buy a house when there is there a limited time we need to be in Australia before we can or are we allowed to start looking when there
Thanks again for your site
JJ Smith
April 7, 2022 at 9:42 pmHi Corey,
Thanks for your comment.
I’m actually in the process of partnering with UNO home loans, who are helping me understand all the rules and regulations for New Zealanders buying property in Australia.
I will find out the answer to your question and get back to you.
Also keep an eye out for my Australia mortgage post, which will hopefully contain the answers to any questions that you might have moving forward. I will send it out in a newsletter once complete.
Thanks
JJ Smith
May 5, 2022 at 1:51 amHi Corey,
UNO have advised that there is no stand down period. As a NZ citizen you are able to purchase a property straight away or even from NZ.
If you want more info on getting an Australia mortgage please visit my new post: https://www.movingtoaustralia.co.nz/australian-mortgage/.
Good luck with your move.
Carl
March 16, 2022 at 8:48 amHi
We are inquiring if we can buy a property in Australia before we move there.
Also, if that is possible as we have a rental property here in NZ. We are NZ citizens.
Thank you
Carl
JJ Smith
March 16, 2022 at 11:44 pmHi Carl,
Thank you for your email.
It is possible to buy a property in Australia before you arrive. However, there are a lot of extra ‘hoops’ you need to work through to make that happen and it will cost you a lot more, e.g. additional stamp duty and capital gains on your NZ property.
Have a read of this post because it covers everything you need to consider including the extra costs: https://www.movingtoaustralia.co.nz/buying-a-house-in-australia/.
If you are still wanting to purchase a home in Australia while you’re living in NZ then please email me back. I’m currently working on a new partnership with uno home loans and I would be able to put you in touch with a mortgage broker who specialises in expats buying in Australia.
Why uno? I’ve been getting an increasing amount of enquiries like yours, so I needed to find a company that could help my visitors while having the same customer focus I have, not just after the transaction, which is uno. It’s taken me over six months to find them.
Make sure you subscribe to my newsletter because I will be introducing the partnership through that in the next couple of weeks.
Have a lovely day.
Thanks
Pedjs
February 23, 2022 at 7:10 amHi JJ,
First of all thank you for your hard work keeping us informed.
Hey, as we are just trying to get our first appointment here in ACT, we need to transfer our Kiwisaver here first. We also heard the once is transferred to some Superfund it can be used /withdraw for deposit.
Do you know which Superfund is the best to transfer to, so it can be used towards the deposit?
Thanks
Pedja
JJ Smith
February 24, 2022 at 11:17 pmHi Pedja,
Thank you for your comment and compliment.
Believe it not I didn’t know you could use your Super for a home deposit in Australia, like you can use your Kiwisaver in NZ. So thank you very much for alerting me to this.
Here is a post that will help you: https://unohomeloans.com.au/first-home-buyer/super-saver-scheme/.
I’m talking to an uno team member next week and will ask them your question, so I can give you a definite answer. Especially regarding which provider to transfer your Kiwisaver too.
I will be in touch next week.
Thanks
PEDJS
February 25, 2022 at 1:30 pmHaha, we constantly learn and discover new things.
Thanks, looking forward to your response
JJ Smith
March 2, 2022 at 11:48 pmHi Pedja,
So I had a good chat to Vincent from uno home loans and unfortunately there is not a super that allows you to take any money out for a deposit to buy a house, like Kiwisaver does.
The Australia government do have a number of schemes to make buying a home in Australia more affordable like the FHOG and the stamp duty waiver.
The First Home Super Saver Scheme (FHSS) allows you to divert your super payments into savings to be used as a deposit for a home.
Here is some info on the best performing super funds: https://www.superguide.com.au/comparing-super-funds/best-performing-super-funds.
However, please note, that you do not have to transfer your Kiwisaver to Australia until you are 100% you are staying there for good.
Please feel free to email me back any further questions you have.
Good luck with your move.
Erin stack
February 5, 2022 at 2:41 amHi i am moving to australia 28 feb permanently my income is nz pension
I will be income tested on dollars in bank which is to replace my home car furnish house
What is the time frame to purchase and go through the process on it effecting australian pension as nz pay up to 26 weeks
Then application fir aussie pension pricess starts
Thankyou
JJ Smith
February 11, 2022 at 2:40 amHi Erin,
Thank you for your comment.
I don’t personally know someone who has moved in your situation, so can only give my option based on what I can find online.
So you have close to 26 weeks to buy a home, furnish it etc before all your funds you will be submitted as your assets. If you do not manage to buy a home in that time then you may not get the pension at that stage. However, once you have brought and furnished your home you will be eligible to apply again.
They have the rule that your home is not included in the assets test and if you sell your home, the proceeds are exempt for up to 12 months if you plan to use them to buy, build or renovate another home.
Have you recently sold your NZ home? If so you may be able to get the above exemption.
Make sure that you read my post on foreign exchange. As you are taking a lot of money with you, then it is definitely worth using an online money transfer company like XE, as they will save you a lot of money: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Sam Langdon
January 27, 2022 at 4:39 pmI would like to purchase an established property in Mount Eliza, Victoria, Australia as a holiday home for myself and family and for my parents when they visit from UK.
I am a permanent New Zealand resident having emigrated from the UK more than 10 years ago. I have also recently applied for New Zealand citizenship.
Am I correct in my understanding that there would be no restrictions associated with this purchase (i.e. I do not have to be a NZ citizen and I would not be classed as a foreign investor with all the associated issues – FIRB approval and additional stamp duty etc
JJ Smith
February 17, 2022 at 8:40 pmHi Sam,
Thank you for your comment and sorry for the delay in replying.
Unfortunately I am not a lawyer or specialise in foreign investment, so can only help you with what I’ve managed to find online.
Here is what I’ve found for New Zealand Permanent Residents buying in Australia:
New Zealand and Australian citizens are able to buy residential property in Australia irrespective of where they live (Australia or NZ). Holders of New Zealand permanent resident visas will also be able to buy residential property if they have been living in Australia for at least 12 months, and have been present in the country for at least 183 days in the past 12 months.
Those on temporary visas (e.g. student visa, work visa or visitor visas) would not be able to buy a house to live in and it’s important to clarify the differences between resident and permanent resident visas, as only permanent resident visa holders will be able to buy property.
Source: https://www.lawlink.co.nz/article/potential-changes-to-home-buying-for-foreign-buyers/.
Have a read of this post by Wealth Ladder, which covers everything regarding ‘Can New Zealanders Buy Property in Australia?’. Wealth Ladder are a NZ based property investment company: https://wealthladder.co.nz/can-new-zealanders-buy-property-in-australia/.
For foreign investors, Foreign Investment Review Board (FIRB) approval is mandatory, however the rule doesn’t apply to New Zealand citizens who’ve been to Australia at least once. If you’re a citizen of New Zealand, you’ll receive a Subclass 444 visa upon your arrival to Australia. The visa grants you permanent resident status here, so you can buy properties much like Australian citizens.
The rules are different if you’re not a citizen of either Australia or New Zealand. If you’re a permanent resident of New Zealand but not a citizen, you will need to have FIRB approval.
Source: https://unohomeloans.com.au/home-loans-citizens-new-zealand/.
I recommend you contact UNO Home Loans. They know all the rules for New Zealanders purchasing in Australia and will be able to help you with your specific circumstances: https://unohomeloans.com.au/.
Hope the above helps. Please feel free to email me back any further questions you have.
Good luck with your move.
Michael
November 23, 2021 at 2:12 amHi JJ,
Has anyone actually tried to use the kiwisaver to purchase first home in Australia. I moved here almost 2 years ago just before the global pandemic. I have requested a kiwisaver withdrawal from my provider (Generate). However, they claim that the kiwisaver act 2006 stipulates that for the first home withdrawal scheme the house or land must be in NZ and not overseas.
If you or anyone else that can comment know of other kiwisaver providers that do allow withdrawal for purchase of a Australian house, please let me know.
Another abstract idea would be to potentially change to an Australian Super fund. However, as the rules over here do not allow you to withdraw super to buy a first home it might get locked away until retirement.
I am definitely frustrated as I want to utilize this fund now to help set myself up. Any advice would be greatly appreciated.
JJ Smith
November 24, 2021 at 3:50 amHi Michael,
Thank you for your comment.
I research this all the time. Unfortunately it appears to be in your Kiwisaver providers hands. Even Australia mortgage brokers say you can: https://www.homeloanexperts.com.au/non-resident-mortgages/new-zealand-citizen-mortgage/.
You are eligible for the First Home Owners Grant (FHOG), as you would have read.
Sorry I can’t be of more help.
Thanks
Michael
November 24, 2021 at 4:08 amThank you for your reply. Do you have any knowledge of which providers do allow you to withdraw kiwisaver for first home in Australia?
This would be a massive help as then I could switch funds immediately.
JJ Smith
November 24, 2021 at 4:10 amI can’t find any provider to recommend unfortunately.
Here is the Government KiwiSaver site and it states that if you are a first-home buyer, please contact your KiwiSaver provider or complying fund provider to apply. It doesn’t state anywhere about applying for a home in Australia. You could contact Kāinga Ora – Homes and Communities and see if they can help you: https://kaingaora.govt.nz/home-ownership/kiwisaver-first-home-withdrawal/.
Thanks
Bev allen
October 12, 2021 at 10:34 amHi JJ, we are currently in the process of selling our NZ home to move to Brisbane…when borders allow. My question is regarding CGT…are we obliged to pay CGT in Oz if the settlement date of our NZ home is a few days after landing in Oz…..or are we exempt as the date of sale will be a few months before?
JJ Smith
October 19, 2021 at 3:28 amHi Bev,
Thank you for your comment.
I’ve found this, but still aren’t 100% as it isn’t referring to a sale in NZ:
If there is a contract of sale, the CGT event happens when you enter into the contract. For example, if you sell a house, the CGT event happens on the date of the contract, not when you settle.
Source: https://propertyupdate.com.au/a-complete-guide-to-capital-gains-tax/.
The date you sell or dispose of an asset is the ‘CGT event’. If there is a contract of sale, the CGT event happens when you enter into the contract. For example, if you sell a house, the CGT event happens on the date of the contract, not when you settle.
Therefore you shouldn’t have to pay CGT on the sale if it is already under contract when you move. However, I am not a professional accountant and I recommend you ask your accountant to confirm.
Please feel free to email me back any further questions you have.
Good luck with your move.
Daniel
August 30, 2021 at 11:26 pmHello,
We are Kiwis who currently own our house in New Zealand (main residence, not a rental property) and plan to buy a house (with cash, no loan needed) after we arrive in Australia. To avoid paying CGT, do we have to sell the New Zealand house first, or can we complete the sell of the New Zealand house after we arrive in Australia? We are planning to move to Queensland permanently but are told that we have to sell the New Zealand house first, to avoid CGT.
JJ Smith
August 31, 2021 at 2:31 amHi Daniel,
Thanks for your comment.
You are correct, if you sell your NZ home before your move you will avoid paying Capital Gains Tax:
If you don’t own a home in New Zealand, or if you sold it before you moved over the ditch, you don’t need to worry about this. But if you rent out your home in NZ or sell it while you’re in Australia, you will likely need to pay Capital Gains Tax.
It’s a good idea to seek help from a professional accountant to make sure that you are compliant with your property taxes in Australia.
Read more: https://www.movingtoaustralia.co.nz/nz-buying-property-in-australia/.
I agree with the advise that you have been given, as it is the simplist. Once you are in Australia you are considered a tax resident and therefore all income and assets are included and are subject to their laws.
However, your accountant can make you a temporary resident for tax purposes, which would make you exempt from tax on your overseas income. Read more here: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Kate Venter
August 29, 2021 at 8:43 amHi JJ,
My husband and I are NZ Citizens and want to relocate to Queensland. We have one investment property in NZ and have never owned a family home. In March 2021, I approached HomeLoanExperts.com to find out how hard it would to obtain a mortgage in Australia while still living in New Zealand (we want to purchase a home off plan with the intention of moving over and straight in once the build is completed), but the HomeLoanExperts representative I spoke to on the telephone was adamant that we would not be able to get a mortgage from an Australian bank unless we have been living in Australia for at least six months ? (I was tried to point out to him we would rather pay a considerable deposit, rather than waste money on rent while our home is being built.) – Which is why I was confused when I read on your site that, “Your deposit amount will vary depending on if you are living in NZ or Australia. If you are living in NZ your deposit will be 20-25%. If you have moved over and are living in Australia you should be able to buy a property with only 5% deposit.”
Seeing that HomeLoanExperts.com is not one of the top 20 Mortgage Brokers in Australia, would it be worthwhile to contact other mortgage brokers ?
Your site is great.
Kind regards
Kate
JJ Smith
August 31, 2021 at 3:08 amHi Kate,
Thanks for your comment.
Check out this post: https://www.huntergalloway.com.au/new-zealand-citizen-home-loan/.
It advises that if you are LIVING and WORKING in New Zealand we (Hunter and Galloway) cannot assist with finance due to restrictions with our credit license. Some banks like ANZ and Westpac Banks based in Australia can consider on a case by case basis but you will need to discuss with them directly.
You need to calculate all costs involved to stay living in NZ while buying in Australia. It’s not only the deposit you need to consider (most of this is covered in the above post.):
– your rent would be cheaper in Australia,
– you will have to pay additional stamp duty (on a $500,000 purchase, this would mean a total of $52,461 in stamp duty payable),
– you will not be eligible for FHOG ($20,000 in Queensland),
– and if you sell your home in NZ while living in Australia you will have to pay capital gains tax, unless your accountant has made you a temporary resident for tax purposes (https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/).
If you still want to purchase a home in Australia while living in NZ I recommend you find a NZ mortgage broker that can help you or contact ANZ and Westpac if you bank with one of them:
– https://www.maphomeloans.com.au/australian-home-loans-for-nz-citizens-living-and-working-in-nz/
– https://www.gra.co.nz/services/investing-in-australia-from-new-zealand
Unfortunately there is no easy answer to your question, but I hope the above helps. Do your calculations and that should make the decision easier.
Kate Venter
February 10, 2022 at 8:40 amHi,
Thank you very much for your advice. (My husband and I have decided it will probably be a better option for us to sell our NZ investment property and purchase a home mortage free in Brisbane.)
Have any of your readers used iBuildNew or a similar company when buying off plan?
Thanks
JJ Smith
February 13, 2022 at 8:24 pmHi,
Good idea regarding selling before you leave.
No sorry I haven’t known anyone personally who has used iBuildNew. However, they do have very good reviews online (4.3 from 577 reviews): https://nz.trustpilot.com/review/ibuildnew.com.au.
Thanks