Why Invest in New Zealand Real Estate
 The New Zealand Government actively encourages overseas investors
to invest in New Zealand, recognising the important contribution foreign
investment makes to the development of New Zealand's industry, resources
and community.
New Zealand is famous for its clean, green environment, with
magnificent mountains
and sparkling waterways. At the same time, New Zealand is a dynamic first-world society with sophisticated cities and a
vibrant arts and cultural scene. The index of economic freedom
(complied by the Wall St Journal) ranks New Zealand third out of
major OECD nations. This takes into account openness of trade policy,
tax rates, monetary policy, wages, unemployment, inflation levels,
investment flows and regulation.
New Zealand has strong population growth due to its progressive
immigration policy and birth rates. Many parts of the country are
experiencing housing shortages translating into strong tenant demand
and price growth. This trend is expected to continue with recent
population projections by the New Zealand Department of Statistics
(March 2003) forecasting up to 64% growth over the next 17 years.
Auckland city is predicted to almost double its population in the
next 40 years. For property investors, this represents outstanding
potential growth in demand and return on investment. New Zealand's
property prices are also relatively undervalued compared to its
closest neighbour Australia.
There are many other benefits for investing in New Zealand including:
Tax friendly nation
New Zealand is an investment friendly country with no stamp duty,
mortgage stamp duty, land tax, property purchase tax, nor capital
gains tax. Some countries (eg. Australia), require property buyers
to pay stamp duty tax, up to 3-4% of the purchase price!
Australian investors also receive excellent tax incentives
from the Australian Tax department for owning New Zealand property.
If you are on the highest marginal tax rate owning New Zealand property
can provide great tax benefits.
New Zealand also has comparatively high depreciation rates, making
a New Zealand investment property even more tax effective.
A relatively untapped market
New Zealand's property prices are relatively cheaper than its major
trading partners and most OECD countries. Offshore investment is in
its infancy however the level of interest is increasing as more and
more people hear about the fantastic growth and income opportunities.
High Rental Yields
Most large cities around the world experience solid capital growth
but lack the rental returns. New Zealand boasts rental yields of
6-10% in its major cities which is fantastic for an investor seeking
a capital growth orientated market whilst still maintaining a good
cash flow position.
Great exchange rates
The New Zealand dollar has traditionally been weak against the
Australian dollar, US dollar and UK Pound Sterling. These favourable
exchange rates make New Zealand property even cheaper for overseas
investors.
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Click here to view our exchange rate calculator.
A Government that welcomes overseas investment
Buying from overseas is simpler than it sounds. The New Zealand Government
has no major barriers for overseas property investors. The Government
encourages foreign investment to help meet the growing population's
increasing demand for property.
» Click here for more information on New Zealand's property market and environment
» Map link
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