If you are considering New Zealand investment property, you are in good company. Many savvy investors are heading to this country today to capitalize on a capital growth and some very attractive real estate. You can choose from commercial blocks of land, or residential properties for flipping or renting. This article will provide four benefits you enjoy when you put money into investment property NZ. At the end of the article, we will give you the name of a well known property finder and buyers agents in New Zealand who can help you find success with your real estate investment.
The first benefit to purchasing New Zealand investment property is the overall financial climate of the country. Despite the economic downturn that has affected the entire globe, New Zealand appears to be weathering the storm rather well. The country offers a stable political environment, which usually leads to a stable financial climate as well. The New Zealand property market continues to show reasonable growth, whether in rental income or capital gains. This is true for both residential and commercial sectors, so you can choose the investment property that meets your needs best.
The tax benefits of a New Zealand real estate investment is attractive too. These advantages include no capital gains tax on value increases on your property. You can sell your property for a hefty profit and not have to pay any capital gains unless you are a trader or sold an investment within the first 2 years of ownership. . There is also not an inheritance tax charged on properties where the owner dies.
From the 1st November 2015 foreign buyers are require to have an IRD number and New Zealand Bank account. this was implemented to help Inland Revenue trace tax avoidance by foreign investors.
New Zealand also tends to have rather liberal guidelines in depreciation reporting. The rate of depreciation in New Zealand is much higher than it is in other countries. The depreciation rate begins as soon as the property is legally purchased by you. You can declare depreciation, along with other property expenses, as deductions on your tax form. This offers you even greater tax savings, which increases the value of your investment property as well.
New Zealand banks and property managers are very willing to work with property investors from outside the country. In fact, many of the investors cashing in on New Zealand property today are from the UK, Australia, Singapore, China and other countries. If you are purchasing New Zealand property remotely, it is very important to find a property finder you can trust to handle your purchase for you.
There is no doubt that New Zealand investment property has become a good value today. However, the basic rules of property investment still apply. You must find property in a good location and consider whether the actual structure is in good condition. To help you find the best deals on investment property in New Zealand, it is a good idea to hire the services of an experienced property finder. Contact PropertyGenie.co.nz. for more information about what a property finder can do for you.
Hadar is a full time Property Investor and Trader, Specialising in Do-ups & Add value, Multiple income properties, High Yielding, Commercial, Equity and "Move Forward" Properties. Hadar is co-owner and Sales & Marketing Mangers at www.PropertyGenie.co.nz. Owner of the Private House Buyers companies www.WeBuyProperty.co.nz & www.PropertyBuyersAuckland.co.nz/ Find Hadar on Google+