NZ Property Market

[MTR]

For those interested in this market, here is some news

The property market in New Zealand peaked in 2007, before falling back a bit during the years following the GFC. Since 2012 though, the kiwi market has been picking up steam... and now property prices in some parts of the country have climbed back above their 2007 peak.

Unbeknownst to many Australian investors, overall median house price growth in New Zealand during the past 12 months has outstripped the growth rate of every Australian capital city! Parts of the NZ property market are running 'hot', providing opportunities for investors to achieve strong capital growth. Median prices in NZ overall have risen nearly 10% over the last 12 months.


No Stamp Duty
No Capital Gains tax

 

[Redwood]

For those interested in this market, here is some news

The property market in New Zealand peaked in 2007, before falling back a bit during the years following the GFC. Since 2012 though, the kiwi market has been picking up steam... and now property prices in some parts of the country have climbed back above their 2007 peak.

Unbeknownst to many Australian investors, overall median house price growth in New Zealand during the past 12 months has outstripped the growth rate of every Australian capital city! Parts of the NZ property market are running 'hot', providing opportunities for investors to achieve strong capital growth. Median prices in NZ overall have risen nearly 10% over the last 12 months.


No Stamp Duty
No Capital Gains tax

There are terrific opportunities in the NZ market, particularly Auckland with apartments at half the price of Melbourne. Not alot of awareness about NZ property imo. I see further growth in NZ in the next 12 months.

 

[MTR]

Yes, I realise this. I flipped 3 units a couple of years ago in NZ, started to play in this market then it just got easier for me to invest in Australia as I was using a BA in NZ who decided to become a full on investor unfortunately so our relationship went a little pear shaped.

Here is some more info:
It's important to recognise however that the growth in NZ property values over the last year has been driven mainly out of New Zealand's largest city, Auckland, as well as the rebuilding of Christchurch (with the local economy and property market there now recovering from the devastating earthquakes of 2010 and 2011).

If you're in the market for short-term capital growth then you need to be selective, as there are significant differences in the rates of growth among different cities and towns

 

[Blair007]

For those interested in this market, here is some news

The property market in New Zealand peaked in 2007, before falling back a bit during the years following the GFC. Since 2012 though, the kiwi market has been picking up steam... and now property prices in some parts of the country have climbed back above their 2007 peak.

Unbeknownst to many Australian investors, overall median house price growth in New Zealand during the past 12 months has outstripped the growth rate of every Australian capital city! Parts of the NZ property market are running 'hot', providing opportunities for investors to achieve strong capital growth. Median prices in NZ overall have risen nearly 10% over the last 12 months.


No Stamp Duty
No Capital Gains tax

Yip I'm from NZ, christchurch actually. i moved to WA 2 weeks before the very first earthquakes happened about 3 years ago. The earthquakes have created a huge shortage of properties in the area and also made certain areas that were less affected, more desirable. An example being my brother purchase a house early 2012 for approx 315, spent 50k in renos and sold it a few months ago for 470k. This was in the NW pockets of christchurch - burnside/bishopdale areas.
all these less affected places have had strong growth though i don't know how much more steam is left.

Also theres a lot of large subdivisions going on in christchurch now aswell to help ease supply shortage. i know a few people buying blocks of land and building they seem to think there are some nice margins in that aswell.

I don't know if you are aware but the NZ govt has recently capped LVR limits on home loans to prevent any risk of a bubble i guess but i read this today saying they have lifted this cap for new builds

http://www.stuff.co.nz/business/money/9498419/RBNZ-exempts-new-builds-from-LVR-rules

Also i think without the cap gains tax in NZ it makes a good opportunity for doing those BUY RENO FLIP properties.

cheers

 

[MTR]

Thanks Blair, its interesting, I also think there may be good opportunities for those cashing cash flow.

 

[DavidMc]

What are the yields like?

I assume they have pretty similar expenses as in Australia.

 

[scottb]

Contacts?

Have wanted to invest in NZ for a while now but find it hard to get information on the necessary banking and compliance aspects as an Australian investor.

Specifically, how does one best organise an investment loan, and can gearing/deductions work in the same manner as it does here, against Aussie income?

If anyone has a preferred lender or broker which they use from within Australia, or a recommended conveyancer on the ground in Auckland - any suggestions would be welcomed

Unfortunately the NZD looks to be heading towards parity but I'm sure there are still some opportunities to be had...

 

[HD_ACE]

Auckland is heating up.

Similar to directions 2031, auckland has

Auckland 2040
http://auckland2040.org.nz

And are implementing the unitary plan to increase density and affordability.
http://unitaryplan.aucklandcouncil.govt.nz/Pages/Plan/Book.aspx

This means there are/will be some great oportunities for development sites and site will now become development sites.

@scottyb yeas you can gear just like an aussie prop ie pay tax on your gains or carry your lose over to your aussie income. Aus and nz have a double tax agreement.

@ david, you can get some good yields in alot of areas. I have a prop a house on its own block 25 ish kms from the city getting over 9% atm.

I think the best value will be in the development sites so will be interesting to see how far it goes.

Cheers

 

[Blair007]

Auckland is heating up.

Similar to directions 2031, auckland has

Auckland 2040
http://auckland2040.org.nz

And are implementing the unitary plan to increase density and affordability.
http://unitaryplan.aucklandcouncil.govt.nz/Pages/Plan/Book.aspx

This means there are/will be some great oportunities for development sites and site will now become development sites.

@scottyb yeas you can gear just like an aussie prop ie pay tax on your gains or carry your lose over to your aussie income. Aus and nz have a double tax agreement.

@ david, you can get some good yields in alot of areas. I have a prop a house on its own block 25 ish kms from the city getting over 9% atm.

I think the best value will be in the development sites so will be interesting to see how far it goes.

Cheers

Hi HD_ACE do you know if the development process in Auckland is similar to that of Perth? also do you know of any links to websites that might explain the process and show some areas with potential rezoning?

 

[HD_ACE]

Hi HD_ACE do you know if the development process in Auckland is similar to that of Perth? also do you know of any links to websites that might explain the process and show some areas with potential rezoning?

Yeap ill try and post them up tonight, have them on my computer.
I would say similar concept to perth but i havnt lodged anything in the last few years. The plan is supposed to stream line it all and try and remove alot of the red tape.

Cheers

 

[HD_ACE]

Hi HD_ACE do you know if the development process in Auckland is similar to that of Perth? also do you know of any links to websites that might explain the process and show some areas with potential rezoning?

try these ones blair.
Have more info and interactive maps to seethe proposed areas etc.

http://www.aucklandcouncil.govt.nz/...m_medium=print&utm_campaign=Unitary_Plan#nogo

http://acmaps.aucklandcouncil.govt.nz/unitaryplan/FlexViewer/index.html

hope that helps

cheers

 

[willair]

This gentleman is a long term investor in Australia-NewZealand,,several investment cycles and worth a read..
http://www.ollynewland.co.nz/

 

[Blair007]

try these ones blair.
Have more info and interactive maps to seethe proposed areas etc.

http://www.aucklandcouncil.govt.nz/...m_medium=print&utm_campaign=Unitary_Plan#nogo

http://acmaps.aucklandcouncil.govt.nz/unitaryplan/FlexViewer/index.html

hope that helps

cheers

cheers HD-ACE looks good!

 

[Mindmaster]

If you go down the development path in say Christchurch, and plan on selling, tax would be a critical factor. As non NZ residents, we would probably be taxed a lot.

Speaking to a good NZ accountant would be essential.

Off the top of their head, does anyone know how tax (equivalent of CGT) for Aussies would work?

 

[Charlotte30]

NZ Property

To get an idea of property in NZ look up Trademe.co.nz. This shows what you get for your money and what is currently available for rent. Dept of building and housing also give monthly rental stats. My impression is that Aus rentals seem to get less rent while paying a higher $ purchase price. We have no building depreciation but can depreciate chattels. I think the leverage process of borrowing could be slower in Aus than what I have experienced in NZ. If you dig deep enough there are bargains everywhere.

Cheer
Charlotte 30

 

[MTR]

This group do some very interesting stuff, outside the square.

I did make money flipping a property in NZ, as always do your own homework


http://propertyventures.co.nz/sell-your-property/

Listings
http://propertyventures.co.nz/listings/

Also, this is not a recommendation, just some food for thought and some lovely yields

 

[scottb]

Thanks for the links!

Here's a couple that I've found in my travels:

http://www.landlords.co.nz/
http://www.newzealandmortgages.com.au/

 

[MTR]

Anyone from NZ know this area that has risen 15 times in 2 years:
Tried to google must have the spelling wrong, help

http://www.youtube.com/watch?v=5vLC...c646da0d6bd7b8d1f3836c75c5fc69eb14c27c8f25235

 

[MTR]

I think this is it, me thinks Steve Mc is buying up, interesting, now watch others jump in

http://www.realestate.co.nz/residential/house/otago/waitaki/oamaru

 

[HD_ACE]

Oamaru

Anyone from NZ know this area that has risen 15 times in 2 years:
Tried to google must have the spelling wrong, help

http://www.youtube.com/watch?v=5vLC...c646da0d6bd7b8d1f3836c75c5fc69eb14c27c8f25235

Yes, been there a few times as my mother lived there for a while. Didnt seem like much to write home about. Just another small town on the east coast between chch and dunedin.

It would be intersesting to know what has caused the 15x growth.

But i have the nz herald in my hands with a big write up on the market going crazy overe there. It has all the suburbs and how the median has changed over the last 12 months.

Oamaru- median drop -7% 225k to 209500 and a 3% rise in sales. This is data from reinz and fairfax.

Let me know if you want any other suburb data.

Some auckland suburbs are 40-60% change in median over the last 12 months

A couple of suburbs looking to hit a median of 2mill, one of them st marys bay up 61% from 12 months ago.

The market is going strong by the looks.