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NZ New Zealand?

Discussion in 'Where to Buy' started by Beelzebub, 21st Jul, 2015.

  1. Beelzebub

    Beelzebub Well-Known Member

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    What's the deal with New Zealand? Does anyone look or invest there? Is it easy to buy? Can you get growth or decent yields?

    It occurred to me the other day that this place exists and has houses and all sorts of other things. Is it worth considering?
     
  2. C-mac

    C-mac Well-Known Member

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    Not yet bought.

    Looked a few years ago. Similar tax structures as here. Auckland had had a boom for its city in comparable % growth to Sydney's in many suburbs.

    Wellington has also lifted more in lieu of continued investor hesitation in currently-rebuilding Christchurch.
     
  3. wombat777

    wombat777 Well-Known Member Premium Member

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    Auckland market is saturated with foreign buyers and has been a bit of a political issue over there recently.

    I'd love a holiday place in Queenstown.
     
  4. norwoodman

    norwoodman Well-Known Member

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    Auckland housing market is still going gangbusters (annual growth still well way over 10% p.a.). Christchurch was rising for a while, but flattening out with rents now falling in some areas as the rebuild and supply kicks in to gear.

    The rest of NZ is generally doing next to nothing, with exceptions.
     
  5. Yuck Fou Jack

    Yuck Fou Jack Member

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    Having worked around NZ for some time, CHC is still a risk IMHO (liquefaction, insurance now and/or in the future if any further quakes). 'Current' un-effected land is now $$$$.... Queenstown presents it's own considerations when buying e.g. winter sunshine hours, proximity to CBD, age of dwelling and insulation (old builds as summer holiday homes, or no insulation, single glazed = cold+++ in winter = higher turnover of tenant, maybe portable gas heater creating condensation, or new build during the mid 2000 'gold rush' where plumbing was possibly not dug in to an adequate depth = frozen pipes = no shower before work until they thaw, hopefully before lunch). Not to mention the parties and over crowding (suggest a good PM). There is also plenty of land supply coming to market that is keeping prices down (slightly out of CDB but great sunshine hours during winter - suits more 'locals' & families than transient renters).
    http://www.scene.co.nz/developer-eyes-500-extra-homes-at-jacks-point/323997a1.page,
    <500K at Jacks Point is attractive for your PPOR.

    If you were buying a holiday pad in ZQN - do your DD. There are $ to be made. The town is also becoming more year round than seasonal.
     
  6. Yuck Fou Jack

    Yuck Fou Jack Member

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  7. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Yes.

    Auckland seems to be a very popular place for renters to live :)

    Could get some good yields 9%+ and that's un-renovated. 25km from the city. 200k outlay. But probably seen around 50% growth over that couple of years so yields have fallen.But rentals are still in strong demand so they should catch up soon.

    No Stamp duty but now there is
    - CG tax if sold within 2 years
    - Location LVR restricting for investors ie 20-30% deposits
    - Therefore restrictions on equity releasing

    So a few things to look out for. The economy has improved alot of late which is good.
     
  8. VB King

    VB King Well-Known Member

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    Agree with the comments on Auckland and Christchurch - the last few years have been a two speed market, the rest of NZ will be to those two cities what Brisbane will be to Sydney in the next few years.

    NZ tends to be easier from a development point of view and has great yield. Did a subdivision and 3 dwelling development just outside Wellington in 09/10, a breeze planning wise compared to an average Sydney council. Have had <1% vacancy since then, returns gross about 7%.
     
    Last edited: 25th Jul, 2015