Australia and New Zealand New Investor

[Andrew Pine]

Hello BiggerPockets forums! I recently moved to Brisbane, Australia after working as a property lawyer for three years in New Zealand, during which I purchased one rental. I have three months of property experience in an Australian law firm before not being able to continue due to my licence not yet being transferred.

Australian property investment is similar to the US, with both systems being considerably different to New Zealand. In Australia there are considerable entry costs (Stamp Transfer Duty, mortgage application fees, title registration fees) as well as considerable exit costs (Capital Gains Tax and Land Tax (for developers)). Whereas in New Zealand the only fees you will need to pay when purchasing is a legal bill of around $1,000.00 and approximately $160.00 for registration costs. In New Zealand you can rock up to your bank with six months' worth of savings and purchase a house and not have your deposit eaten into by entry costs. The same applies with exit costs; with no taxes or levies, your net profit is not reduced by the act of selling.

I would love to commence a discussion involving people who have invested in markets with high entry and exit costs (US/Australia) and also in  markets with low costs. In particular, whether their tactics change based on these costs. As an example, with property flipping, it is hard to see a property developer in Australia purchasing a property, only making cosmetic changes and then attempting to on-sell it for a higher price; as the increased value they would need to receive would need to be quite high just to cover entry and exit costs. Apologies for the pessimism, I anticipate this is due to my ignorance.

Also, if there are any members who are living in the Brisbane area, it would be great to link up as it is great to talk with like minded people!

Andrew