Did you know that today you have the best opportunity for the real estate investments in New Zeland? Most of the people don`t know that if you decide to invest in the real estate market, you`ll find the most catchy reasonable rates and low-interest rates in the last thirty years. If you want to achieve good earnings by investing in this sector, and you have chosen New Zeland as your investment destination, you`ve made the right decision. Based on New Zeland market & quality of life, experts suggest doing property investment in New Zealand. According to them, Now is the best time for boosting your incomes trough one quality real estate investment portfolio. Here is why:
Save on taxes and increase the return of the investment at the same time
It is a very important factor while deciding to invest in real estate. When talking about a tax regime in New Zeland, the rule is simple- the more incomes you earn the crucial tax you pay. When it comes to real estate investments, they are considered as one of the tax-refund elements. So, the more valuable your investment is, the more tax refund you`ll get.
Also, real estate investments in New Zeland can provide multiple returns on your investment by using co-called OPM. The OPM is New Zeland`s financial and management system meant for industrial, commercial real estate portfolios. More than forty organizations, including national agencies and councils or large real estate companies, are using the OPM.
There is no exchange control in New Zeland
One important issue to consider real estate investment in New Zeland is a fact that there aren`t any exchange controls which can affect money payments. It involves both payments to or from the country, so there is a free capital flow. Most of the overseas investor like New Zealand, because there is no exchange control in New Zealand authority.
Extra advantages foreign investors
It is a common belief that foreign investors get extra facilities while investing in New Zealand. There are many property consultancy firms guide them with minimal cost. Foreign investments can impact on economic growth and creating new workplaces. The Central Government of New Zeland is aware of that, and that`s why it stimulates real foreign estate investments.
No CGT on real estate investments
The CGT is a tax on capital gains. In New Zeland, there is no CGT for long-term serious real estate investors. I have spoken with many property investors regarding their interest. 60% people pointing that there is no CGT on real estate investments for a long-term contract.
If you are a foreign investor in New Zeland, who wants to buy a commercial property priced up to NZ$10,000,000 you are free to do so without the approval of the OIO – the Overseas Investment Office.
A stable political environment
New Zeland has one of the most stable political environments which is committed to economic growth. This is one of the safest, stable, and investment-friendly environments you`ll find.
One of the essential benefits of the country itself is its tourism because more than 2.5 million international tourists visit the country every year. They spend more over $6 billion while their vacation or business trips to New Zeland, and they all need a place to stay at.
According to my recent research, I found that some people still struggling while real estate investing. I have asked regarding some of their common difficulties. Based on my research, we need to concern the following issues while investing in real estate especially in New Zealand. If these arguments are enough reason for you to invest in the real estate market in New Zeland, here are also some things you should know before doing so:
– Rental deposits in New Zeland can amount up to four weeks rent, and you must arrange it formally with a Tenancy Services ( in the 23 working days time from the rental deposit receipt)
– You can demand a maximum of two weeks rent in advance from your tenants, and if you want to increase the amount of the rent you have to note them of your decision at least 60 days before ( or at least 180 days from the last rental increase)
– As a real estate owner, you must take care of all the repairs on the building. Your tenants will notice you if there are any of the breakdowns, and you are obligated to “fix” them in a reasonable time.
– New Zeland has rather strict property inspection rules, get to know them to avoid penalties
– Even when you are out of the country, as a real estate owner you are obligated to be available or to nominate your available agent as an alternative. This rule has been made in the case of an emergen