Investing in New Zealand — Is the Grass Greener?
Property | international opportunities Investing in New Zealand — is the grass greener? 40 Property | international opportunities Investing in New Zealand — is the grass greener? The advantages of investing in New Zealand are clear: no stamp duty, strong rental demand and enormous potential for capital growth. But how easy is it to buy property in New Zealand? And is it worth the hassle of managing a foreign property? ew Zealand offers an attractive 1996). According to the New Zealand lifestyle, with clean air, close- Property Investors Federation, Nknit communities and thriving around 170,000 investors own 400,000 metropolitan centres set against a of these properties. backdrop of sprawling landscapes. Unemployment rates are steady With a growing population and at a low 3.8%, which, together with increasing rental demand, the country strong domestic demand and foreign is attracting Australian investors in investment, has been underpinning a droves; in regional areas, at least, strong economy. Australians are proving to be the The Reserve Bank of New Zealand is dominant force in the property market. increasing cash rates to try and dampen “We had a number of Australian growth – most recently, and largely investors, when the market was down unexpectedly, in June this year – but it six or seven months ago, coming into has had little effect so far. the market and buying in our provincial “I think it’s too early to see the effect towns,” says Murray Cleland, president of the interest rate rises we’ve had of the Real Estate Institute of New this year,” Cleland says. “The housing Zealand (REINZ).
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