New Zealand goes beyond its excellent financial gains earning it a number one rank for protecting investors. This makes it the ideal place for estate investment. Increased population growth has also influenced a growth in demand in the real estate sector since the growing population requires a place to settle. Along side the increased population growth, there are several other benefits associated with real estate investment which includes:
1) New Zealand encourages overseas investment.
The government of New Zealand allows foreign investments in to the country removing any possible barriers for the outsiders. Investment of houses help to house in the growing population hence increasing demand for property in the country.
2) Political stability.
New Zealand has got a politically stable environment making investments secure. The government is interested in political growth which encourages both business and property investment. New Zealand positioning politically and geographically makes investment stable and secure.
3) Benefits from taxes.
It has the highest property depreciation rates in the world with good deductibility provisions from one business to another. In newzealand, there is no stamp duty, no estate taxes or death duty. Drawing up tenancy agreements and arranging mortgages are deductible expenses. The cost of repair, management fees to maintain property and collect rent and commissions paid to agents to find tenants are all deductible.
4) High returns from rent.
New Zealand is a place for investors who depend on rental returns. Most of countries in the world have a solid capital growth but lack rental returns. Newzealand have rental yields of about 5-10% which makes it suitable for investors.
5) Financing is available.
New Zealand non residents can borrow up to 70% of the purchase price which is against the security of newzealand properties. This creates an enabling environment for foreign investors to invest in New Zealand. With this they can easily build rental apartments without facing financial constrains.
6) Favourable exchange rates.
New Zealand dollar has been known to be weak than the Australian and us dollars and the UK sterling pound. This difference has therefore made New zealand property market more attractive for overseas investors.
Each year, New Zealand welcomes two and a half million visitors who spend approximately six billion dollars during their time in New Zealand. Increasing air capacity and international profile has helped drive growth in the country. During their vacassion in the country, visitors spend a lot of money in renting out apartments.
8) Rise in immigration.
Immigration has currently increased which has resulted to a considerably large increase in population density of New Zealand. This increase in population has brought about increased demand for housing. For this reason, investing in real estates has become one of the most profitable opportunity in the country.
9) Wanaka and tourism.
Wanaka is recognized as a leading Holiday destination in south islands of New Zealand. It is a great place to purchase a holiday home to pass out your weekend or extended holiday periods. Due to the expanding local economy, Wanaka has become the fastest growing island in the country. It has resulted to a increased residential development and increased value of residential property.
For more information about real estate in New Zealand check out the sell your house fast infographic.