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 PLACE (PERHAPS THE BEST AND SAFEST COUNTRY IN THE WORLD) TO LIVE IN 2021. We are back to Normal Life Again, i.e. unlimited numbers at sports, entertainment and public gatherings. Our border is open again to Australians but still closed to the rest of the world. New Zealand is great for lifestyle, jobs, education and property.

FINANCIAL NEWS - Mortgage Interest Rates are an all time low with steadily declining fixed rates as low as 2.20%. There is no predicted "crystal bowl" for future short term fixed rates, but economists predict to remain low until sometime in 2022 The Reserve Bank has on 26 May indicated perhaps a slight chance of OCR change mid 2022. Recently long fixed term rates (4 and 5) have increased worldwide. Investors - May 2021 the Reserve Bank has instructed all banks maximum 60% finance for all investors (exception new builds). In March 2021 the Government made a large announcement - the phasing out of interest deductibility on rental income for any investment purchased from 27 March. Investment properties owned before 27 March 2021 will have interest phased out over 4 years reducing by 25% per year and gone by April 2025. See Accountant Withers Tsang newsletter and IRD attachments below, The Government also doubled the Brightline Tax timeline from 5 to 10 years (except new builds). This will reflect on future purchases being for first home buyers and owner occupiers and perhaps properties may decrease slightly.

PROPERTY MARKET - As at 1 June 2021 New Zealand average median house increased in the past 12 months 20.5% to $890,848, Auckland Region increased 16.5% to $1,,265,071, Tauranga increased 22.2% to $968,342, Wellington Region increased a huge 27.2% to $1,001,732, Nelson increased 15.3% to $758,808, Christchurch increased 18.5% to $612,988, Queenstown Lakes District increased 3.9% to $1,344,802, Dunedin increased 17% to $646,313, Invercargill a huge increase 22.1% $427,391. The strongest NZ performers were Wairioa 52% to $381,026, Rangitikei an increased 51.7% to $432,42, Tararua (near Ohakune) 49% to $420,591, Gisborne 36% to $590,915, Whanganui 35.2% to $500,313. Since Government March 2021 announcement the investors have stalled and First Home Owners have "cooled off" waiting for prices to fall and being cautious.

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. Up to 90% finance (conditions apply)

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.

ALL INVESTORS BEWARE OF THE "BRIGHT LINE TEST" now to 10 years (since March 2021) ownership of investment property (i.e. if you purchased investment property after October 2015 Also this test has changed twice since 2015) See The Inland Revenue Department will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate. See IRD attachment dated March 2021.

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 Pty Ltd for a preapproval from a choice of 21 leading New Zealand banks/lenders.