Investing in New Zealand
1. It’s a buyers market
With limited competition and lots of properties on the market the property market in New Zealand can be described as a buyers market.
2. Building consent numbers have fallen
The number of building consents for houses in March fell 8.3%.
3. New Homes are becoming more expensive
Due to the falling dollar new homes will be more expensive to build as the cost of importing construction material is increasing and a number of builders have left or are leaving the industry.
4. Investors are currently not buying rental properties
This will lead to a shortage in rental properties available and therefore will see rents increase over time.
5. Lower interest rates and tax cuts
Lower interest rates and tax cuts have made it easier then ever before to afford to purchase property in New Zealand.
6. Property prices have remained reasonably steady
Property prices have remained reasonably steady in the face of negative media and the current financial crisis.
7. Vendors are ready to negotiate on price
Vendor are ready to negotiate resulting in opportunities for investors to pick up bargains.
8. Positively-geared property deals can now be found
In most areas of New Zealand positively geared properties can now be found.
9. Prices are set to increase again
Once the confidence in the property market picks up again property prices are set to rise.
10. New Zealand’s property prices have doubled every 7 years
On average property prices have doubled every seven years for more than 50 years and there is nothing to suggest that this will change.
11. No Stamp Duty
You do not need to pay stamp duty in New Zealand.
12. No land tax
Investors do not need to pay land tax in New Zealand
13. Low entry level
Investors are able to enter the property market at the lower end as some properties are available to investors from as low as $100,000 NZD.
14. Exchange Rate
Australians are able to buy more property for their dollar due to the current exchange rate.