This is part one in a three part series on investing in New Zealand real estate. If you want to learn more, be sure to RSVP NOW for a spot at our free New Zealand Property Seminar being held 19 May in Bangkok.
New Zealand is more than just a pretty destination with stunning natural beauty. It is home to one of the world’s most exciting real estate investment markets. Strong rental demand, limited taxation and a path to permanent residency are a few of the reasons investors are eyeing up property in cities such as Auckland and Wellington.
Benefits to investing in New Zealand real estate
Avoid paying extra – One of the main problems with property investment in Singapore or certain Australia states are the taxes associated with the purchase. Land taxes and stamp duties for foreign buyers can take an affordable property and push its price beyond reach. There are no stamp duty or land taxes in New Zealand meaning investors will save money. Additionally, there is no capital gains tax in New Zealand if the investor buys and holds the property for more than two years.
Promising returns – According to Global Property Guide, rental growth in Auckland increased by 7.2 percent during the last 12 months. And with 700 people estimated to be moving to the city per week, the rental market is predicted to remain strong for the foreseeable future.
As a whole, New Zealand had the 5th highest property price growth in the world in 2016 and home prices have risen by more than 70 percent over the course of the past five years. The end result is strong rental returns and possibly one of the highest returns on investment in terms of real estate should you ever decide to sell your property.
Path to citizenship – Buying property in New Zealand also puts you on the fast track to obtaining citizenship in the country. Should you meet set qualifications and purchase an off plan apartment, you are eligible for New Zealand Permanent Resident status which means you may be able to receive free education and reduced university tuition fees for your children. Should you choose to live in the country for five years and meet the residency requirements, you can then apply for New Zealand citizenship.
Foreign ownership NOT banned
New Zealand is in the process of preventing international buyers from purchasing existing residential properties, but it is important to note this is not an outright ban on foreign ownership. Overseas investors are still allowed to purchase units off-plan and can also acquire land to build their own properties.
“Our position has always been that if you’re adding to supply, for on-sale of that new dwelling, then you will be able to build,” New Zealand prime minister Jacinda Ardern explained.
Exclusive New Zealand Property Seminar
Want to know more about the New Zealand real estate market? A free New Zealand Property Seminar is being held on 19 May at Four Points by Sheraton Sukhumvit. You have an opportunity to learn more about investing in the country with experts on hand to answer all of your questions. Space is limited, so it is important to reserve your spot for this complimentary seminar today.