There are few countries that compare to New Zealand. New Zealand offers a fabulous collection of lifestyles and geographic diversity, vast rugged mountain chains, ancient glaciers, steaming volcanoes, deeply indented fiord lands, beautiful lakes, sweeping coastlines with miles of gorgeous sandy beaches - some with silent seas, some with pumping waves.
There are lush native, exotic and subtropical rain forests with giant trees. Thermal activity, islands, plains and picturesque farmland. Unique birdlife, big fish and lots of golf courses - several of international standard.
A rich social and cultural fabric exists, with an array of gastric delights from every nationality made of fresh and often organic foods. From Bluff oysters, mutton birds, lamb, fruit and vegetables to award winning wines.
Prominent in world sports, fashion, research and technology, it is hardly surprising that New Zealand is a favourite destination for visitors, immigrants and film makers. Comparable in size to Great Britain and Japan the country is not crowded and you can enjoy a temperate climate.
New Zealand is sophisticated, friendly and relaxed. 3.9 million people make up the population, a mix of indigenous Maori, a heritage of original pioneers from England, Scotland, Ireland and now a cosmopolitan international mix.
Clean green environment
From all corners of the globe New Zealand is exemplified as a country of unsurpassed natural beauty with a clean, green undisturbed environment. A clean and green attitude also extends to protecting the environment
Political Stability
New Zealand is not just pretty postcards. It also boasts a safe economic and political environment. New Zealand provides political stability with it’s AA+ credit rating. Transparency International rates New Zealand as 1 of the top 3 countries least corrupt and one of the safest countries to live, in the world
Security of investment
For two years in a row the World Bank has quoted New Zealand as the best for ease of doing business. Furthermore New Zealand is quoted as offering the best environment for commerce and investment
Freehold title
Real estate in New Zealand is affordable. The majority of which is privately owned real estate held as freehold title by both New Zealand and foreign investors.
Favourable exchange rates
One average one British house would buy almost three average New Zealand houses
Lowest acquisition and disposal costs
New Zealand provides the lowest acquisition and disposal costs of developed countries. In other countries this can be anything from double to 6x the cost compared to New Zealand
Immigration incentives
New Zealand recognises the need to stimulate population growth with Immigrants and encourages those who have ability to invest and provide high skill levels
Generous tax benefits
New Zealand has no capital gains tax, land taxes, stamp duties, financial transfer taxes, wealth or death duties. New Zealand has one of the lowest personal tax rates of the developed countries, a generous depreciation rate and a unique low-risk investment vehicle in the form of “Loss Attributing Qualifying Company”. New Zealand also provides generous tax deductible expenses. There is no limit to the amount of depreciation and tax losses that can be carried forward, and offset against future profits
Tax deductible expenses include:
Interest incurred on money borrowed for financing rental property
Legal fees relating to arranging a mortgage
Legal fees relating to establishing tenancy agreements
Rates and insurance
Mortgage repayment insurance
Management and body corporate fees
Motor vehicle and travel charges required to maintain the property
Accounting fees
Repairs and maintenance
Ability to quarantine investments
New Zealand provides the opportunity to establish investment entities which quarantine the NZ investment and any profits within the New Zealand tax jurisdiction. Future profits maybe offset against New Zealand's generous tax depreciation allowances, minimising tax
Potential for outstanding growth
Statistics show that average residential property has doubled in value every 7.23 year -10 per cent per year compounding for the last 50 years.
Available finance
Both bank and non-bank finance is readily available for New Zealand investors, often up to 90% of the value of the property. Unlike many countries and in some, prohibited, qualified overseas investors may obtain both initial finance and refinance of investment property
Population dynamics
According to the Department of Statistics, New Zealand’s population growth has averaged a steady $40,000 people over the last 15 years. The number of people per dwelling has reduced from 5.8 people in 1990 to 2.4 today. 30% of the population is approaching retirement age. The demand for housing that caters to an executive lifestyle is increasing and availability is behind demand
Huge tourism growth
Over the past 10 years New Zealand tourist numbers have doubled with a potential increase forecasted at 7% a year – or doubling every 10 years. New Zealand tourism infrastructure is largely outdated and of an inferior standard when compared to other countries infrastructure, 5 star hotels and resorts. Enormous investment opportunities exist in providing superior facilities for tourists and lifestyle communities for holiday, retirement and everyday living.
Excellent rental yields and tenancy demand
The number of people renting in New Zealand increases an average of 1% per year.
Around 20,000 new home-based businesses start every year and require a different style and design of property. With the current increase in demand for rental properties and growth patterns, estimates indicate an additional 16,000 investment properties are required per-annum without taking into account homes that are past their use-by date.
Astute property investment is obtainable and New Zealand offers
Security – through political stability and steady economy
Growth – coastline and cities with high-growth and lifestyle are available throughout the country
Yield – 10% average compounding growth, growing demand for tenancy and ways to maximise investment return
Tax effectiveness – by understanding and following the rules
Personal control – freehold titles, ability to quarantine investments, employ professional management services
Cash conversion – growth to revalue, refinance, reinvest
Investment opportunities
Existing land and Buildings
Development and Joint Venture opportunities
Investment Funding opportunities
In high-growth, rezoning and hot spot locations, new property with architectural features, superior chattels and fixtures and accommodation that meets owner/occupiers, investors and tenants’ needs and demands. Where professional management is available, the bank will be willing to finance and can offer tax effectiveness
New Zealand the land of opportunity for an astute investor contact Hallmark for opportunities and advantage of investing in New Zealand
