SPRING IN NEW ZEALAND means thousands of lambs bouncing around lush evergreen fields, blooming flowers/trees, daylight saving with longer daylight "relaxed Kiwi lifestyle" hours and warmer days. Spring also is a househunting/finance season where vendors put their house on the market and purchasers are keen to settle before Christmas. With interest rates on a record "low" and a "buyer's market" now is a good time to obtain a mortgage preapproval (valid 3 months) then seriously look at properties in New Zealand. Contact Mary before househunting to know where you stand!!!
NEW ZEALAND IS A GREAT PLACE (AUCKLAND NAMED NO. 1 MOST LIVEABLE CITY IN THE WORLD June 2021 - see attachment). New Zealand is great for lifestyle, employment, education and property.
NEW ZEALAND IS A GREAT PLACE TO LIVE not only for lifestyle but for jobs, education and purchasing a property.
FINANCIAL NEWS - Based on financial economic and employment recovery internationally and New Zealand improving in the past few months, this has reflected in several increases in all Fixed Interest Rates from all time historic "lows" in mid 2021. The NZ Reserve Bank has raised the "Cash Rate" (Variable/Floating) for the first time in 7 years and said they will look at bringing in debt to income levels with mortgage applications. It also indicates a tightening in monetary policy and lowering the percentage of mortgage borrowing over 80% LVR to Owner Occupiers/First Home Buyers. Since March 2021 Investors can only borrow up to 60% on "existing properties." In October the Government has given Investors tax incentives for "new builds" Overall there has been rising levels employment, job security and wages, record New Builds Consents, less travel so more New Zealand spending on property purchasing or renovations.
UNEMPLOYMENT RATE for Q2 June 2021 was 4% down from 4.1% Q2 2020.
PROPERTY MARKET - As at 1 October 2021 New Zealand average median house increased in the past 12 months 27.8% to $950,229, Auckland Region increased 24.9% to $1,346,964, Tauranga increased 31.6% to $1,046,390, Wellington Region increased 35.9% to $1,082,993, Nelson increased 21.2% to $806,807, Christchurch increased 27.6% to $666,371, Queenstown Lakes District increased 30.4% to $1,489,123, Dunedin increased a 22.8% to $672,031 and Invercargill increased 23.8% to $446,098. The Strongest NZ performers were Wairoa 49.8% to $336,878, Masterton 45.9% to $645,693, Hastings 41.4% to $843,516. With a shortage of property for sale and for rent in all cities New Zealanders are feeling "FOMO" Fear Of Missing Out!!.
FIRST HOME BUYERS - access to your deposit from your Kiwisaver Superannuation. Refer to Housing New Zealand website to see if you qualify www.hnzc.co.nz. There are Regional/Location purchase price and personal income limits. Normally 80% the Government allows the banks a small percentage of lending 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.
INVESTORS "BRIGHT LINE TEST" now to 10 years (since March 2021) ownership of "existing" investment property (i.e. if you purchased investment property after October 2015, changed twice since 2015) See The Inland Revenue Department will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate. See IRD attachment dated March 2021. Also refer to "New Build" Investor New Law October 2021.
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/or 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 for many New Zealand residents, Ex Pats moving back to New Zealand, Nonresidents particularly Australians and Kiwis residing in Australia and other countries purchasing in NZ.
CONTACT MARY from New Zealand Mortgage Solutions Pty Ltd for a preapproval from a choice of 21 leading New Zealand banks/lenders.