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 (PERHAPS THE BEST COUNTRY IN THE WORLD TO RESIDE DURING THE WORLDWIDE COVID-19 TIMES). In the past "COVID Year" it has been one of the few countries in the world going down to Level 1 reverting to "Nearly" normal life again, i.e. unlimited number of sports, entertainment and public gatherings e,g, America Cup in Auckland. The main reason is the public co-operating with Govenment instructions and our "Closed Border" to the rest of the world except for many New Zealanders returning to New Zealand. New Zealand is great for lifestyle, jobs, education and property.
FINANCIAL NEWS - Since the lockdown last August the property market has gone absolutely crazy. From 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.
UNEMPLOYMENT RATE for Q4 December 2020 was 5.3%.
PROPERTY MARKET - As at 1 March 2021 New Zealand average median house increased in the past 12 months 14.5% to $753,038, Auckland Region increased 13.3% to $1,233,385, Tauranga increased 14% to $927,022, Wellington Region increased 12.3% to $952,320, Nelson increased 10.4% to $732,464, Christchurch increased 10.6% to $732,464, Queenstown Lakes District increased 2.5% to $1,316,587, Dunedin increased a huge 16% to $631,979, Invercargill a huge increase 16.9% $415,817. The strongest NZ performers were Gisborne an increased 30.6% to $544,343 and Whanganui 30% to $451,446. A lack of supply of properties on the market and huge demand has triggered the value increases plus interest rates. Everywhere in New Zealand property prices have gone crazy!!
FIRST HOME BUYERS - In March 2021 the Government has given some incentives e.g. increased personal income caps to get financial assistance for First Home Loan and Grant and throwing $3.8 Billion into housing.Refer to Housing New Zealand website to see if you quality www.hnzc.co.nz for this grant. 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.,
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