Recently my partner and I bought a property in NZ. There are several attractions to buying property in NZ.
1. The very cheap currency - when commodity prices collapse so does the currency
2. The absence of capital gains tax (CGT) & goods & services tax (GST) on property
3. The attractive lifestyle - NZ is far more fun compared to when I first came here years ago
4. The change in government - the new National government are likely to be better economic managers, perhaps similar to the Aust Liberal Party, but in a moderated sense because these are different times.
The attraction of buying NZ property makes particular sense if you can pay off the loan in foreign currency (whilst the NZD is low) so you can sell it when the currency (and commodity prices) is stronger. You also have the flexibility of making this work in other ways. You can rent the property when the currency is low, and use rental property abroad to pay off your (low NZ) costs of living. When the NZD shows signs of strength, you can move offshore to enjoy the same benefits in another country, or you can refinance your home to pay off another investment property if the local property market is still hot.
The issues that come to mind for investors are:
1. Setting up a bank account - try ASB, BNZ or Westpac
2. Speaking the local language - English in NZ
3. Residence visa - easier if you have a NZ or Australian partner, you are a business owner, or you qualify for their skilled migration program. eg. Tradesperson.
1. The very cheap currency - when commodity prices collapse so does the currency
2. The absence of capital gains tax (CGT) & goods & services tax (GST) on property
3. The attractive lifestyle - NZ is far more fun compared to when I first came here years ago
4. The change in government - the new National government are likely to be better economic managers, perhaps similar to the Aust Liberal Party, but in a moderated sense because these are different times.
The attraction of buying NZ property makes particular sense if you can pay off the loan in foreign currency (whilst the NZD is low) so you can sell it when the currency (and commodity prices) is stronger. You also have the flexibility of making this work in other ways. You can rent the property when the currency is low, and use rental property abroad to pay off your (low NZ) costs of living. When the NZD shows signs of strength, you can move offshore to enjoy the same benefits in another country, or you can refinance your home to pay off another investment property if the local property market is still hot.
The issues that come to mind for investors are:
1. Setting up a bank account - try ASB, BNZ or Westpac
2. Speaking the local language - English in NZ
3. Residence visa - easier if you have a NZ or Australian partner, you are a business owner, or you qualify for their skilled migration program. eg. Tradesperson.
'Buying NZ Property – Download the free sample readings!
The NZ property market is shaping up as one of the most attractive property investment markets for the next few years. High yielding property and the collapse of the NZD make NZ the perfect counter-cyclical investment if you buy right! In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!
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