MARKETS
New Zealand
Often referred to as a ‘Slice of Paradise’ New Zealand is one of the top holiday destinations in the world with its clean green natural image, scenery, Lord of the Rings film setting, adventure tourism, culture and value for money. It has a population of 4 million in a country similar in size to Great Britain, Colorado or Japan, making it one of the worlds least crowded countries. New Zealand has a market economy with sizeable manufacturing and services sectors complementing a highly efficient export-oriented agricultural sector. Energy-based industries include forestry, mining, horticulture and tourism. New Zealands spectacularly beautiful landscape includes vast mountain chains, steaming volcanoes, sweeping coastlines, deeply indented fiords and lush rainforests. Overall, despite the recent upwards shift in the housing market, New Zealand remains a very attractive place to invest for a number of good reasons.
Why invest in New Zealand?
Affordability: New Zealand still remains very affordable despite recent price increases in the housing market. There are many cities and large towns in New Zealand where you can find comparatively good investments that can be obtained under current valuation. With added value strategies and suitable finance packaging, the investor can often take an immediate equity position leaving the property to cover its own holding costs.
Strong Rental Demand: During 2006 the market has been consolidating after a period of steady rise. The demand for rental accommodation has remained steady.
No Stamp Duty in NZ: Stamp duty simply does not exist.
No Capital Gains Tax: While it is true that generally speaking there is no tax on capital gains in NZ, this only applies if you reside in NZ, otherwise you are required to declare your capital gains if you are a resident for tax purposes in Australia.
Bank Friendly Policy: Most banks will lend up to up to 100% of the mortgage required depending on serviceability and other collateral/assets offered. Local ANZ interest rates at Dec 06 is 7.99% for a fixed 3 year term.