Yes the title is correct, New Zealand, with one of the world’s most liberal and open regimes for overseas property investment may be planning on liberalizing still further.
Bay of Islands, Northland, New Zealand
New Zealand allows any overseas investor to buy most properties. Any existing or new build domestic property can be bought as an investor. Most investors will not have too much trouble getting local finance either, although with a significant deposit of 20% plus.
Overseas investors in New Zealand can also buy most urban commercial and retail properties. The limits have been on large rural properties and, in particular, off-shore islands. New Zealand has rather a lot of off-shore islands which and while some are active volcanoes (White Island) or wildlife sanctuaries (Auckland Islands) - many others, particularly in the warmer northern parts of the North Island make for rather attractive hideaways for the rich and famous.
Islands and large iconic properties of rural properties in New Zealand are classified as “sensitive”
The New Zealand Herald is reporting the Minister John English as saying:
“Current rules are complex and processing a sensitive land application involves the assessment of 27 criteria and factors. The process is too long and too uncertain,” Mr English said. He wants sensitive land re-defined “to ensure that only land of particular significance or importance to New Zealand is screened.”
That’s quite a contrast to the Australian approach to property investment - which even prevents intending immigrants from buying an existing home (they have to build a new house).
Photo Credit
When looking at property that you intend to rent out, Australian property investors really should take a long hard look at the chattels and gadgets included in the property - some of them are just too much trouble to be bothered with. Here’s some of my least favourite household chattels:
Swimming Pools
Sure everyone wants a pool- but no one actually wants to maintain it! If your property is executive level - sure include a swimming pool and include the pool man in the rent, but most tenants won’t want to pay extra or pay for the maintenance. If you are stuck with one see if you can run it as a salt pool rather than a chlorinated one - a lot less maintenance.
Old Style Air Conditioners
The old evaporative air conditioners are expensive to run and not work well, and cost a fortune to replace. Make it a negotiating point on the sale, and then replace it and get a better rent and a guarantee to boot!
Fancy “Gold” Taps
Usually installed by someone who is in love with the instant makeover your home TV shows. They look fantastic - for about 6 months and then they look old, scratched and well fake. Replace with stainless steel ASAP.
This is my new favorite, number one thing to avoid though as a property investor: the Water Gurus Air-To-Water generator. No this is not a joke - really I couldn’t have made it up -here it is features on Australian news:
You can have one of these lovely devices installed in your home - complete with hot and chilled water options for $2000(+GST). The generator is so noisy it has to be installed outside. As a landlord I can see the maintenance bill now, and the tenant complaining about the power bill. Oddly most Australian houses already come with clean drinking water installed: its called a tap!
New Zealand company Bayley’s Real Estate is increasing its presence in key South-East Asian countries as interest in New Zealand property increases among Asian overseas property investors.
Auckland CBD Property - Hot in China?
According to the New Zealand Herald Bayley’s are focusing on China, Hong Kong and Singapore investors and a promoting a mixture of more expensive New Zealand property including commercial, industrial, rural and coastal listings.
The paper suggests that potential investors are being driven by:
“They are classic counter-cyclical investors and they perceive there are good opportunities in the New Zealand market. The falls in the value of the New Zealand dollar and in interest rates have also been factors, along with attractive property prices and yields”
They consider New Zealand to be a “safe haven” which displays less volatility than many other comparable property markets. Asians views New Zealand as a country where they are unlikely to lose their capital.
A typical recent sale to an overseas investor is described as:
a three-level character building in Victoria St, in Auckland’s CBD, which Chan recently sold to a Chinese investor for $3.175 million at a 7.8 per cent yield.
The 266sq m building is leased to the ASB Bank until 2012, with rights of renewal through until 2024.
Bayley’s target market is seen as high net worth individuals in Shanghai and Beijing particularly. The recent New Zealand China Free Trade Agreement is also seen as an important factor in the growth of Chinese investment in New Zealand property.
Complete story here
Easter and other long weekends can often be a good time to be out looking at property- because most people won’t be, instead at home with the kids or on holdiay. It can be a great time to grab a bargain for the switched on investor.
The prime time in any market to make your own buyers market is long weekends, The Christmas/New Year break - when most of the country goes AWOL (check you can find a solilcor or conveyancer open in January though) and Easter. Easter generally coincides with the start of school holidays and the end of summer in most of Australia and most local property investors will have their attention elsewhere.
While many city real estate agents will avoid running open homes on long weekens, agents at popular weekend escapes will sometimes take the opportunity of many more city people in town than normal.
Denmark is a pretty little town on Western Australia’s southern surf coast known for fine wine and food and fishing. On Easter Saturday Lot 101 Eden Road goes under the hammer. The name is a clue, The property is a 54ha conservation-zoned block overlooking Denmark’s main fishing and swimming beach. The block is at the ridge of the peninsular and includes 950m of ocean frontage and 320m of inlet frontage. Its being marketed as like living in your own national park and the auction will be held on site - with courtesy 4WD transport for bidders.
Denmark Ocean Views, Western Australia
Photo Credit: Australia Today
