How to Profit from New Zealand Real Estate
Did you know that over 5 million people live in New Zealand? If you are looking into investing in New Zealand real estate, but are in the beginning stages of research, you are in the right place. We have put together this guide to share what to take into consideration in order to make the most money from New Zealand real estate.
Read on to learn more.
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One of the best things about having investment property in New Zealand is that you don’t have to worry about taxes. New Zealand is a country that is not taxable. This means that if you buy a home and in a few years you gain $50,000 in profits or more, all of those profits will have $0 in taxes.
Best Places to Buy
When you are looking to invest in rental properties we recommend looking at New Zealand’s cities. The reason is that there are quite a few potential renters in the cities. From workers to immigrants and students, you will have a larger pool of people looking to rent a home.
Also, in the cities there is a higher potential to also take part in a holiday exchange home program. This house swapping trend is on the rise and more people are taking advantage of this because they can experience living around the world without breaking the bank. Check this ultimate guide out to learn even more about this growing trend.
If you are looking to rent to students, the best rental cities include: Auckland, Christchurch, Dunedin, Palmerston North, and Wellington. Also, there are a large number of migrants looking to live in cities like Napier, Hamilton, Tauranga, and Nelson. Migrants also look for rental homes in Christchurch, Auckland, and Wellington.
When you are choosing where to invest you want to take external influences into consideration that are out of your control. One of these influences is the economy. As long as there is employment in the area with steady income raises, then you can rest assured that there will be an upward rise on rental units.
Another external influence is the migration numbers. The higher these numbers are, the higher the rents will be in those locations. If there are low migration numbers, the market will slow down and units might be on the market longer.
Take a look at the larger employers in the city you are considering because if a large employer ends up closing down then this will cause a bit of chaos in the rental market. It is best to find cities that have multiple large corporations vs being dominated by one single employer.
Ready to Tackle the New Zealand Real Estate Market?
Now that you learned how you can profit from New Zealand real estate, you can make sure you make smart moves. Remember to not rush into anything when making a decision to avoid doing anything you regret.
If our article helped you out, we have more guides here in our real estate section.