NZ Winter means beautiful picturesque snow in the skifields (Queenstown being one of the best skifields in the world), "evergreen" New Zealand with the clean sheep, farmland, forests, warm thermal pools in Rotorua and picturesque residential landscape colour.
NEW ZEALAND IS A GREAT COUNTRY RIGHT NOW - RANKED IN MARCH 2022 10TH HAPPIEST COUNTRY IN THE WORLD BY UNITED NATIONS. We are back to Normal Life Again, i.e. unlimited numbers at sports, entertainment and public gatherings. Our border is open again to the world. New Zealand is great for lifestyle, jobs, education and property.
FINANCIAL NEWS - Since the beginning of 2022 the house price "correction" market reflects lower prices in many areas. Reasons are higher interest rates which will continue, Reserve Bank restrictions for investors borrowing maximum 60% (not new homes), a changed law (Credit Contracts and Consumer Act) restricting and creating more strictness on lending assessment for everyone, first home buyers Government lowering the borrowing over 80% finance from 10% to 5% of all residential bank/lender lending. Also the phasing out of interest deductibility on rental income for any investment purchased from 27 March 21 and if purchased before 27 March 2021 interest phased out over 4 years reducing by 25% per year from October 2021 so gone by 2025 (See Accountant newsletter/IRD attachments below,) Also Brightline Tax timeline increased from 5 to 10 years (except new builds), shortage constructIon materials with huge delays and price increases. All of these as of June 2022 reflects on low demand purchasing properties and more strictness applying for loans. It now has reverted to a Buyer's bargaining market. Another huge reason Inflation is 6.9% March quarter which is the biggest movement since 1999 (23 years) Unemployment is record low 3.2% - positive note (strong labour market).
PROPERTY MARKET - As at 1 June 2022 Core Logic Statistics for New Zealand average median house decreased by 0.9% in the past 3 months but increased in the past 12 months by 15.3% to $1,027,12. In the past 12 months Auckland Region increased 14.3% to $1,425,594, Tauranga increased 21.7% to $1,178,517, Wellington Region increased 11.1% to $1,242,386, Nelson increased 13.9% to $864,400, Christchurch increased 24.5% to $763,168, Queenstown Lakes District increased 26% to $1,694.211, Dunedin increased 7% to $691.567, Invercargill increased 11.2% to $475,101. The quarterly fall of 0.9% is the biggest drop over a 3 month period since the end of 2010 when the market was recovering from the GFC. See attached Core Logic House Price Indes report on website.
FIRST HOME BUYERS - Contact Mary to inquire on using some of your deposit from your Kiwisaver Superannuation. Refer to Housing New Zealand website to see if you quality www.hnzc.co.nz. There are purchase price and personal income limits.
REMEMBER ALL NONRESIDENTS MUST HAVE A NZ TAX FILE NUMBER BEFORE THEY SETTLE ANY NEW ZEALAND PROPERTY and must provide their overseas tax file number.
NONRESIDENTS PURCHASING PROPERTY IN NZ - There is a ban of nonresidents purchasing "existing residential properties" - with the exception of New Zealand, Australian and Singaporean citizens). Nonresidents purchasing new properties are acceptable.
RENTAL AND VALUES: When you look at such a diversified value in New Zealand and look at rental return on the Government website (outlined on this website "Useful Links"), you will see the capital growth and rental returns that suit you pertaining to the New Zealand location you wish to purchase.
REMEMBER THERE IS NO STAMP DUTY AND NO LAND TAX in New Zealand. You normally require your deposit for the property plus approximately NZ$1,500 legals to NZ solicitor to acquire a New Zealand property.
Refer to my "CASE STUDIES"on my website with great client comments and stories from residents residing in New Zealand. Also many Australian and Ex Pat Kiwis residing in Australia investing or moving to New Zealand.
Contact Mary from New Zealand Mortgage Solutions Ltd for a preapproval from a choice of 21 leading New Zealand banks/lenders.