NEW ZEALAND AUTUMN MEANS lovely moderate temperatures where people are still getting away for long weekends. At the same time colours changing outdoors with really picturesque landscapes, particularly in the South Island in Queenstown and Wanaka.
NEW ZEALAND IS A GREAT COUNTRY RIGHT NOW - RANKED IN MARCH 2022 10TH HAPPIEST COUNTRY IN THE WORLD BY UNITED NATIONS. AUCKLAND WAS RANKED THE "MOST LIVEABLE PLACE IN THE WORLD" BY REUTERS IN JUNE 2021 As of April 2022 it is recovering from Ormitron and is reverting to "Nearly" normal life again accepting COVID like the rest of the world. Many Ex Pats are returning to New Zealand. As of April 2022 Australians and from 10 May other tourists from certain other countries will be allowed to enter New Zealand quarantine free so long as they show a Vaccine Pass (no quarantine)!!!. New Zealand is great for scenery, 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 new changed law in December (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/lenderlending. Also new law from October 2021 - 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). All of these as of April 2022 reflects on low demand purchasing properties and applying for loans. It now has reverted to a Buyer's bargaining market. Another huge reason Inflation is 5.9% 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 March 2022 Core Logic Statistics for New Zealand average median house only increased by 0.8% in February but increased in the past 12 months 25.2% to $1,036,117 In the last 12 months Auckland Region increased 25.2% to $1,500,082, Tauranga increased 34.6% to $1,178,811, Wellington Region increased 25.9% to $1,138,210, Nelson increased 19.6% to $863,163, Christchurch increased 34.5% to $759,591, Queenstown Lakes District increased 21.7% to $1,513,327, Dunedin increased 15.8% to $707,887, Invercargill increased 20.2% to $482,118. Out of 960 suburbs, 581 still recorded a gain of at least 1% in past 3 months but 154 suburbs recorded falls of 1% or more. Highest percentage gain was Fiordlands and Rotorua. See Core Logic reports attached for the past 3 months.
FIRST HOME BUYERS - access your Kiwisaver Superannuation. First speak to Mary re finance then contact your Kiwisaver provider to see if you qualify for a grant and withdraw of Kiwisaver.
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 rental returns that suit you pertaining to the New Zealand location you wish to purchase.
DEPOSIT - 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/registration to NZ solicitor to acquire a New Zealand property.
Refer to my "CASE STUDIES"on my website with great client comments and stories, i.e. New Zealand residents, Ex Pats moving back to New Zealand, Nonresidents residing overseas particularly Australians and Kiwis residing in Australia and other countries purchasing in New Zealand.
Contact Mary from New Zealand Mortgage Solutions Ltd for a preapproval from a choice of 22 leading New Zealand banks/lenders. Helping clients for 23 years.