Summer in New Zealand means Christmas New Year holidays. Most people enjoy swimming at the beaches or the picturesque lakes, bushwalking (no snakes or deadly spiders), BBQs at the beach or at your house and generally a very relaxing time for everyone. Nice to have evergreen fields, blooming flowers and trees, daylight saving and warm days. It also reflects on the housing/finance market with many settlements at Christmas and new properties on the market late January. Great time to start househunting after your holiday, but remember to get your preapproval from Mary before househunting!!! New Zealand is a great place to live not only for lifestyle but for jobs, education and purchasing property. A huge factor is low interest rates. If you require a mortgage preapproval (valid 3 months) and seriously looking at properties in New Zealand then contact Mary.
So much around the world and in New Zealand has occurred in 2016 that have rocked the world. First Brexit in UK, then Donald Trump elected US President. In New Zealand 14 November a 7.8 magnitude earthquake hit Kaikoura and badly shook Wellington. As a NZ economist said "The market may be shaken and stirred, but it is far from broken.". Then the great NZ Prime Minister John Key steps down in December after 10 years at the top with so many achievements.
Financially from the Reserve Bank of NZ in October brought in new restrictions on Loan to Valuation Ratios to all New Zealand banks with maximum lending for investment property is 60% and owner occupied is 80% nationwide. The exemptions are new land and construction, refinancing dollar for dollar from another lender, construction LVR is 70% for nonresidents and 80% residents. The Reserve Bank took this action, as the property market throughout the whole of New Zealand was extremely active as well as the new "Responsible Lending" law. With tighter lending restrictions, higher deposits for all borrowers, interest rates still at an all-time low, lack of supply and all time record net migration - people will still look at NZ property.
GDP for Q2 (June 2016) was 2.8%.
Unemployment Rate for Q3 2016 was 4.9 down from 5.5% in Q2 2015.
Policy changes from the New Zealand banks are that there will be no future lending to residents and nonresidents earning foreign income who are not New Zealand or Australian citizens or do not have New Zealand Permanent Residency.
All nonresidents now, must have a NZ tax file number before they can settle any New Zealand Property and must provide their overseas tax file number.
Property Market - New Zealand average median house increased 12.4% in November 2016 to $624,675, Auckland Region increased 12.8% to $1,051,387, Tauranga increased 26.5% to $665,155, Wellington Region increased 20.6% to $565,631, Nelson increased 15.4% to $489,338. Christchurch increased 4.3% to $501,229, Queenstown Lakes District increased 32.2% to $1,000,205 and Dunedin increased 11.4% to $341,604.
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.
All investors for NZ investment property must be aware of the law "Bright Line Test" whereby all investors who now purchase residential NZ property with the intention of selling and making a gain within the first 2 years will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate (refer to your NZ Accountant)
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 if you have a NZ or Australian passport/citizenship.
Refer to my "Case Studies" on this website of many Australian residents, Ex Pat Kiwis living in Australia and overseas people investing or moving to NZ. There are many happy clients. Contact Mary from New Zealand Mortgage Solutions Pty Ltd for a preapproval from a choice of leading New Zealand banks/lenders.
We are mortgage brokers who specialise in providing New Zealand and Australian finance.
We are accredited with 12 New Zealand banks/lenders and accredited with over 35 Australian lenders. This gives us and you an advantage.
Our focus is to help provide mortgage options and creating loan solutions for Australian residents and people around the world wanting a New Zealand mortgage. Our main aim has always been to help people own their own home and to choose with me.
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Everything you need to know if you thinking of buying real estate in New Zealand. Updated each month.
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