New Zealand Autumn means lovely moderate temperatures where people are still going on holiday, getting away for long weekends. At the same time the colours are changing outdoors and thee are really picturesque landscapes, particularly in the South Island (Queenstown, Wanaka are absolutely beautiful this time of the year).
New Zealand is a great place to live not only for lifestyle but for jobs, education and purchasing a property.
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 low but increasing in New Zealand and around the world, lack of supply and all time record net migration. As per QV report in March 2017, values are continuing to drop in Auckland and Hamilton, and the rate of increase has slowed considerably in most other areas of NZ.
GDP for Q3 (December 2016) was 2.9% from 3.3%
Unemployment Rate for Q4 December 2016 was 5.2% up slightly from 4.9% Q4 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 provide their overseas tax file number.
Property Market - New Zealand average median house increased 13.5% in February 2017 to $631,349, Auckland Region increased 12.8% to $1,043.680, Tauranga increased 19.4% to $673,923, Wellington Region increased 21.5% to $589,784, Nelson increased 16.9% to $513,933. Christchurch increased 2.8% to $498,710, Queenstown Lakes District increased 29.5% to $1,039,434 and Dunedin increased 15.6% to $359,629.
All Investors for NZ investment property must be aware of the law "Bright Line Test" whereby all investors who purchased residential NZ property after 1 October 2015 with the intention of selling and making gain will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate.
NZ exports remain high. Also with record high migration to New Zealand both from ex pats and other nationalities.
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 40% deposit investment, 30% construction and 20% owner occupied plus approximately NZ$1,500 legals to NZ solicitor to acquire a New Zealand property if you have a NZ or Austraian passport/citizenship or New Zealand permanent residency.
Refer to my "Case Studies"on my website for Australian residents and Ex Pat Kiwis living in Australia invesing or moving to NZ. 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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