Why Invest in New Zealand Real Estate?

Tax Benefits

No stamp duty, no wealth or death duty, no estate taxes, no capital gains tax.
Excellent deductibility provisions of losses or expenditure from one business to another. New Zealand has one of the highest residential property depreciation rates in the world.

Interest rates incurred on money borrowed for financing rental property is a deductible expense. There is no limit on the amount of interest deductibility that can be off set from one investment to another.

Legal fees such as arranging a mortgage and drawing up a tenancy agreement are deductible expenses. Rates and insurance on rental investment property are deductible.

The cost of repairs on rental investment property, management fees to collect the rent and maintain the property, commissions paid to an agent to find tenants and accounting fees incurred on preparing accounts are all deductible.

Political Stability

The political environment in New Zealand is stabile with a government committed to economic growth. Investment in both business and property is encouraged with no restriction of ownership by overseas residents except in some limited instances requiring Overseas Investment Office (OIO) consent.

New Zealand’s positioning geographically and politically offers safety and stability. The uncertain global economy in these uncertain times makes ‘brick and mortar’ investments a more secure option.

Rise in Immigration

A sharp turnaround in net migration has occurred over the past few years and the rise of immigration has increased the demand for housing.

Financing Available

Facilities are available for non-residents of New Zealand to borrow against the security of New Zealand properties. Up to 65% and in some cases to 70% of purchase price or valuation.

No Exchange Control

There are no exchange controls effecting remittances to and from New Zealand. A free flow of capital in and out of the country is permitted.

 

 

OTHER FACTORS

OIO Approval

Foreign investors wishing to acquire commercial property in New Zealand can freely do so without the approval of the Overseas Investment Office (OIO) up to a level of NZ$10,000,000. Beyond that level OIO approval is required and is also required for some rural and waterfront property acquisitions. For more information click here.

GST

Goods and Services Tax (GST) imposes a transactional tax of 15% on virtually all transactions. There are few exemptions with these being principally in the financial services mortgage and loan sector. The Peninsula Bay lots are offered on a GST inclusive basis.

GST is an end user tax and is not normally payable in respect of residential property. With other types of property such as the Peninsula Bay lots the GST paid as part of the purchase price of the land can normally be reclaimed from the Inland Revenue Department if the purchaser is registered for GST. Accordingly there should be is little fiscal effect on the purchase, except for potential timing differences in cash flow.

Tourism

Each year New Zealand welcomes around 2.5 million international visitors who spend approximately $6 billion during their time in New Zealand. New Zealand’s strong international profile along with increasing air capacity to the region has helped drive growth.

Wanaka and Tourism

Wanaka is recognised as one of the South Island’s leading holiday destinations, a great place to holiday or visit spring, summer, autumn or winter. It has long been recognised as a great place to purchase a holiday home to stay over the weekend or more extended holiday periods. Tourists see Wanaka as the perfect stop when travelling the South Island.

Wanaka has become one of the fastest growing towns in the South Island of New Zealand, driven by an expanding local economy, lifestyle choice, and an influx of retirees. This has resulted in an unprecedented amount of residential development and sharply rising property values.

Market Appreciation/Capital Gain

The Central Otago Lakes District is one of the fastest growing areas in New Zealand.
Peninsula Bay is one of the last subdivisions in Wanaka that can offer such panoramic lake views. With less availability of such quality sections in the future and increasing demand for lake and mountain views, section owners can anticipate and expect excellent market growth in the investment value of a section and completed residential property.

Disclaimer: Infinity Investment Group does not warrant the accuracy, completeness or currency of the information on this page, and is not liable for or in connection with any loss or damage arising from any inaccuracies, errors or omissions in the information provided. Investors should seek independent advice.