New Zealand Property Solutions NZPS

Why Invest in New Zealand Real Estate?

The New Zealand Government actively encourages overseas investors to invest in New Zealand houses, recognising the important contribution foreign investment makes to the development of New Zealand's industry, resources and community.

New Zealand has established itself on the world stage as a superior property investment location. Famous for its breath-taking scenery, clean green environment and friendly people, the benefits of New Zealand real estate go beyond its excellent financial gains. At the same time, New Zealand is a dynamic first-world society with sophisticated cities and a vibrant arts and cultural scene.

The New Zealand property market has an opportunity to benefit from strong national population growth due to New Zealand’s progressive immigration policy and birth rates. Many parts of the country are experiencing housing shortages translating into strong tenant demand and price growth. For property investors, this represents outstanding potential growth in demand and return on investment.

There are many other benefits for investing in New Zealand including:

High rental yields

Most large cities around the world experience solid capital growth but lack the rental returns. New Zealand boasts rental yields of 5-10% in most of its major cities which is fantastic for an investor seeking a capital growth orientated market whilst still maintaining a good cash flow position.

Tax friendly nation

New Zealand is an investment friendly country with no stamp duty, mortgage stamp duty, land tax or property purchase tax, nor capital gains tax (if the property is owned for more than five years and you have the intention of purchasing for rental income). Many countries (e.g. Australia), require overseas property buyers to pay stamp duty tax, which can be up to 12.5% of the purchase price.

Australian investors of New Zealand property also receive excellent tax incentives from the Australian Tax department for owning New Zealand real estate. If you are on the highest marginal tax rate, owning New Zealand real estate can provide great tax benefits.

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 the New Zealand property market even more attractive for overseas investors.

» 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 encourages investment into new and off-plan residential housing in New Zealand, to encourage continuous future supply of housing. The Government encourages foreign investment into New Zealand housing stock to help meet the growing population's increasing demand for property. New Zealand Property Solutions can provide guidance about exactly which locations to buy in, and also the type of property investment that meets with the criteria of the Overseas Investment Office.

How can we help?

The New Zealand Property Solutions process is simple and transparent. We help all types of property investors enter the New Zealand property market. Our holistic approach means we offer services to help at all stages of the investment process.

For an investment property, supply and demand of tenants is critical. We focus our attention on sourcing property in the inner city and city fringe properties where rental demand is strong. We always strive to maximise outcomes for our clients. New Zealand Property Solutions has current property opportunities available for you to view and purchase.

» Click here to review our current NZ investment property opportunities

Some of our clients have the do it yourself approach and source their own New Zealand properties. However, most people lack the support network in New Zealand, so they come to us seeking an administration support package to help with the purchasing process. Our administration package includes the following services:

  • Legal conveyancing
  • Banking and finance
  • Property management services
  • Accounting services
  • Insurance recommendations

The administration package is designed to assist an overseas and indeed local investors enter the New Zealand market in confidence. We can assist in every step of the buying and holding process of New Zealand property. Click here to receive more information on our administration service.

Managing a NZ Property

Just as important as buying the right property is effective and efficient management of the property. An investor not only wants to maximise long-term capital growth potential but also wants to maximise the weekly cash flow and tax position.

Property managers are the most convenient way for an overseas investor to deal with all the day-to-day property management issues. Property managers promote and advertise your property, find and approve tenants, submit bond application forms and write the lease agreements. They'll also look after any maintenance issues such as repairs to a leaky tap or appliances. They send frequent consolidated reports illustrating all cash inflows and outflows and take the hard work out of maintaining your property.

We ensure that all of our recommended property managers meet the following criteria:

  • Experience with overseas clients
  • Below market vacancy rates
  • Experienced staff members
  • Competitive fees
  • Comprehensive services
  • Consistent rent reviews and routine inspections of your property

We offer a firm commitment that your property will be managed according to your wealth creation strategy.

Taxation

New Zealand is an investment friendly country with no stamp duty, mortgage stamp duty, land tax or property purchase tax, nor capital gains tax (if the property is owned for more than five years and you have the intention of purchasing for rental income). Many countries (e.g. Australia), require overseas property buyers to pay stamp duty tax, which can be up to 12.5% of the purchase price.

Australian investors of New Zealand property also receive excellent tax incentives from the Australian Tax department for owning New Zealand real estate. If you are on the highest marginal tax rate, owning New Zealand real estate can provide great tax benefits.

As a New Zealand Property Solutions customer, you will have access to an experienced tax consultant who will assist you in obtaining a Tax Number (IRD number), submit your New Zealand tax return on your behalf, and communicate with you throughout the year to plan your tax return.

Insurance

Insurance is relatively cheap in New Zealand compared to other countries. The main type of insurance cover required for an investment property is contents, building and landlords insurance.

New Zealand Property Solutions have undertaken detailed research of all the insurance companies and can provide the information and applications for your convenience.

Purchasing Property

Purchasing an investment property in New Zealand is relatively easy, but making a smart investment decision that maximises your potential profit requires a lot of homework. Before you purchase a house, terrace unit or apartment in New Zealand, you should thoroughly research and understand the local market. This includes studying the changing demographics of the area, becoming familiar with factors affecting supply and demand i.e. population growth rates, and anticipating any impending changes to council or government legislation.

When purchasing New Zealand investment property as a non-resident; you need to think about the following:

  • What type of property am I permitted to purchase? Are there any restrictions?
  • What are my on-going tax obligations?
  • Will I have to pay a capital gains tax on my New Zealand property?
  • How much will New Zealand Banks lend me?
  • Will I be eligible for a multi-currency loan in my own country?
  • Will I need to liaise with any professionals when purchasing New Zealand real estate?
  • Do I need to be aware of other tax implications?
  • Will I require a lawyer or registered valuer to purchase New Zealand real estate?

As an overseas investor you want your investment to be both rewarding and uncomplicated with no unwanted surprises. We are able to achieve this through our range of services and professional insight and knowledge of property in New Zealand.

Our administration package is designed to assist an overseas investor enter the New Zealand market in confidence. Click here to receive more information on our administration service.

New Zealand Property Solutions understand purchasing a property can be an anxious time for many buyers. Our years of experience, research and support make the purchase process simple and easy for you to purchase property in New Zealand.

New Zealand Property Solutions is licenced through the Real Estate Agents Authority and adheres to strict Professional Conduct and Client Care Practice Rules. These are outlined in the Code of Conduct 2012 which can be downloaded here.  Our consultants are regularly educated about changes in the industry to bring our clients the most professional service possible.

Foreign Currency

When purchasing New Zealand property, at some point in time you will need to send money to New Zealand either for the initial deposit or to simply top up your New Zealand bank account. Eventually you will need to extract monies from New Zealand too, ie. when you sell your property or collect the income from the property.

When investing in foreign property markets a consideration is exchange rate movements and difficulties in transferring funds internationally. A good way of mitigation against exchange rate movements is to establish the loan in the same country you buy the property.

There are several ways to send monies and arrange transfers internationally. It pays to think about who you will use to transfer your money across as it could save you thousands of dollars. Most people are unaware that there is an alternative to using their local bank; there are also non-bank institutions that operate under the same licensing conditions as the banks, providing security with cost-savings.

New Zealand Property Solutions draws upon the services of OFX to help you transfer your funds in a timely cost-effective manner. OFX offers corporate rates and services to individuals, which means great savings on international transfers and more money at the other end. Using foreign exchange companies like OFX instead of using your local bank can save you a lot of money.

» Click here to view our exchange rate calculator.

» Click here to register with OFX

Banking and Finance

One of the greatest advantages of buying property is the ability to leverage your investment, in other words, using debt to help pay for the property. Financial institutions regard New Zealand property as a sound source of collateral, and often are willing to lend up to 70% of the purchase price for eligible borrowers.

New Zealand has many different lending institutions, creating a competitive mortgage environment. Banks and other lenders often change their lending criteria, so you may need our help to ensure you find the most cost effective and flexible loan.

New Zealand Property Solutions provides access to more than 30 lending institutions and keeps up to date with the ever-changing lending market.

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