By this point in our Country Focus, the idea of investing in New Zealand will have more than captured your attention. What follows now is to dive into the world of real estate in this jurisdiction that seems to have no weaknesses whatsoever. Real estate investment is one of the best options for those who want to shore up their economic opportunities on New Zealand soil, and in this section, we'll see why.

Buying property in New Zealand is an investment suitable for different profiles of investors or wealthy individuals. However, the entry prices are not the cheapest in the neighborhood. Of course, this is offset by the abrupt growth of the real estate sector over the last few years, which has allowed people to make fortunes from their properties through sales and rentals.

At Mundo, we have taken care to maintain close relationships with the major players in the New Zealand real estate investment world to offer our distinguished readers unique opportunities in the market, always in conjunction with the support of our team of experts to ensure that any transaction or procedure you have to carry out is headache-free.

If buying a property in New Zealand already sounds like an interesting idea, wait a moment to read about the many advantages of investing in this jurisdiction.

Benefits of Investing in Real Estate in New Zealand

Making fortunes through leverage

Although property prices in New Zealand are not among the lowest in the world, that doesn't mean that with reasonable capital, there aren't attractive investment opportunities in the property market.

One of the opportunities offered by the possibility of buying property in New Zealand is to leverage your deposit to take advantage of property appreciation in a relatively short period of time. 

For example, if you start by buying a $1 million property with a $300k deposit, you can expect a return of up to 330% if you have experts advising you on your investment strategy. 330% sounds too good to be true? The truth is, the New Zealand real estate market makes it possible. Take a look at how:

-New Zealand has maintained a trend for over 40 years in its real estate market: properties double in value every ten years.

-You can borrow the deposit you use to buy a property if you meet certain requirements.

Under those two premises, let's continue with the example: buying a $1 million property with a $300 thousand deposit.

-If you do a deal like this, you are practically getting $1 million worth of growth with only $300,000 invested. That's 70% leverage.

-On top of that, if you use your $300K as a loan, you're talking about 100% leverage.

-If the trend of the last 40 years continues and the price of your new property doubles in a decade, you've basically gained $1 million in growth for an investment (in practical terms) of $0.

This is one of the best-kept secrets of millionaires in New Zealand. Whether they are locals or international investors, leverage through property purchases is one of the most used strategies in this jurisdiction.

Favorable Tax Policy

When investing in New Zealand real estate, the most common plan is to rent out the property to generate a steady income. In most cases, that means being at the mercy of each jurisdiction's income tax, but the New Zealand case offers some facilities for landlords to enjoy their money without being crushed by the tax pressure seen in other countries.

In New Zealand, what you earn from renting out your property, of course, counts when calculating your income tax, but there are many ways to mitigate this. You can use depreciation, agents' fees, mortgage interest, legal fees, insurance payments, and more as deductibles to reduce the amount you have to pay in tax.

Besides that, in New Zealand, there are no taxes related to stamp duty, property purchases, or capital gains.

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Property Yields are Particularly High

The growth of the real estate sector in New Zealand makes it not uncommon to find rates of return of 5% or more (after operating expenses). When you mix such a high rate of return with falling interest rates in this jurisdiction, it creates the conditions for it to be relatively easy to generate positive cash flow through real estate investment in New Zealand.

Favorable Legislation 

Unlike jurisdictions whose legislation follows socialist and collectivist principles that always disadvantage the landowner or property owner, New Zealand has neutral laws that place people on an equal level.

Real estate and its rental are regulated by the ActATenanciesR1986. This law states that the two parties can freely agree on the rental value of the property in question and also allows for increases in the rental price with fairly easy conditions to be met:

Give sufficient advance notice of the increase,

Not having made a raise in six months.

The Whole New Zealand Package 

Investing in New Zealand real estate is not just about buying a property in one of the most expensive jurisdictions in the world. By setting foot on New Zealand soil, you start to enjoy the advantages that come with operating in one of the three freest countries on the planet.

The income you earn can easily be invested in other sectors of New Zealand's growing economy, or you can start thinking about getting a New Zealand passport (we've dedicated a whole section of our Country Focus to that, which you can visit at any time).

New Zealand is a haven where economic prosperity is the mantra in a world of increasing uncertainty and restrictions by governments increasingly oriented towards socialist ideologies and anti-business and anti-investors.

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Best Locations to Buy Property in New Zealand

Investing in New Zealand real estate is a fairly significant outlay of money, so it's important to know in advance where the best places to put your money are and where property prices tend to appreciate most quickly. 

The secret to making a good property investment in New Zealand is simple. It's about finding places where you are starting to see high levels of population and economic growth simultaneously, as well as places where the government is paying particular attention to investing in growth.

These are the places you should keep in mind when buying a property in New Zealand:

Auckland

The southern and western suburbs of Auckland today represent the areas with the greatest growth potential in the heart of New Zealand. Significant appreciation in property prices is expected with the growth of services and the development of communication infrastructure in these areas.

Gisborne

Gisborne has experienced more demand for property growth than any analyst predicted since 2020, with the boom in remote workers preferring to live on the coast. The new normal has served to drive up prices in the coastal area like a tourist boom.

Manawatu

Similar to what has happened in Gisborne, prices in Manawatu have skyrocketed thanks to the demand generated by professionals trying to find a place to live and work away from the hustle and bustle of the megacities (and their prices).

If you want to know more details about the real estate projects that represent the best investment opportunities in New Zealand, you can contact our team now! 

Who We Are and What We Can Do For You

Mundo experts specialize in finding the best real estate investment opportunities for our distinguished readers, including international investors and high-net-worth individuals looking for options to protect themselves from oppressive governments and laws that infringe on civil rights and economic liberties.

We have worked for almost 30 years to offer access to the best real estate opportunities in the best and safest jurisdictions globally, and now New Zealand joins our list of countries.

Our experts can help you find and take advantage of the best opportunities in the New Zealand real estate market so you can start enjoying all the advantages this jurisdiction has to offer.

If you want to start the process of investing in New Zealand property, contact us now.