Investing in New Zealand

writersgeekinc By writersgeekinc, 28th Nov 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/qxxovxt9/
Posted in Wikinut>Business>Investment

This Article is about Investing in property in New Zealand

Investing in New Zealand


So, you have decided you want to invest in properties to make some money and have a steady cash flow and you want to do it in Australia. This is not a terrible idea, but perhaps you should look a little further, like New Zealand. Property investment in New Zealand is a bit more affordable and more stable. There are quite a few great opportunities for New Zealand property investment. There are many sought-after properties you can grab a hold of and at great rates not only affordable for you, but affordable for your renters.

In New Zealand property investment, you don't have to worry about things like land taxes or stamp duties, so the process is much more simple than in Australia. Plus you have the added benefits of the dollar equivalency versus Australia. You also have lower interest rates which is a big plus. Also, if you are a foreign investor, this is the place for you to do your business as the restrictions are virtually nonexistent. The only drawback that is known really is that in New Zealnad, their banks usually require you to pay a deposit of 30%.

Again, there's no land taxes when investing in New Zealand properties and the start-up costs are lower than Australia, so you'll see profitable returns that much quicker. With the way things are in New Zealand, there doesn't look to be an explosion or implosion of the market, so that stability factor works out well in your favor. Although the banks require a 30% deposit, New Zealand banks are typically more flexible than Australian banks. Another advantage is the way the landlord/tenant rights are set up. There is a balance here so everyone can get along and there's not likely to be costly court proceedings. There are some other disadvantages though you should know about before investing in New Zealand properties.

One of these disadvantages is the costs of maintenance and repairs. Because of New Zealand's climate, you'll have to be vigilant against toxic mold and weakening of materials like wood. The upkeep costs or repair costs in case of damage can be a bit pricier when compared to Australia, so this is something you should think about before committing your investment capital. Also, the market tends to be flat for long periods of time, so your goals may not be realized for quite a while.

All in all, investing in New Zealand properties is more flexible than investing in Australian properties. The opportunities to make money are far greater than that in Australia, and currently the New Zealand market is described as a buyer's market, so if you're an investor, then you're almost guaranteed to get in on some good deals and make some nice returns from them. If you're going to buy, though, the time is now.

If you're like many Australian investors, investing in properties in New Zealand is the preferred way to go. You should act fast, however, since this is not a big secret, but be always use some caution, as all investments have their risks. Good luck to you.

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