New Zealand Property Investment
New Zealanders have traditionally been great advocates of "bricks and mortar" investments, with rental property a common element of many people's investment portfolios.
There is nothing like a falling property market and rising interest rates (and possibly even a tenant's blocked loo or two!) to make "mum and dad" property investors reconsider their investments - but what does residential and commercial property investment offer to New Zealand investors?
Residential Property Investment
Buying and renting out houses is a popular investment for New Zealanders.
Advantages of Investing in Residential Property
If you manage to secure good tenants, and the
property market continues to rise, the returns can be very good.
Risks of Investing in Residential Property
Just three of the risks associated with
residential property investments include:
- Bad tenants,
- Rising mortgage interest rates, and
- Falling house prices
As with any investment, the key to success is
thorough research and diversification.
Tax on Residential Property Investments
The Inland Revenue Department has clarified the
tax position on investments in residential property, which may make
the increase in the value of an investment property taxable when you
come to sell it. If you have a history of regularly buying and
selling properties, even your family home, you should check your tax
position carefully. For more information see the booklet Buying and
Selling Residential Property (IR313) on the IRD website.
Property Investments | Broadbase International Ltd
Commercial Property Investment
Investing in commercial property generally requires a lot more equity than residential property investment, and interest rates are higher. Tenants usually stay for longer terms, but economic downturn can leave an office building vacant for long periods. With the increased risk comes the potential for higher returns, but again this type of investment requires extensive research.
At Broadbase International we can help you with finance and insurance for your property investment, and assist you in building a balanced investment portfolio. Contact us for more information.
At Broadbase International we specialise in providing expert, impartial financial advice for Brits in New Zealand and Kiwis returning from the UK. Don't hesitate to contact us if you have any questions about New Zealand investments, and remember to ask for a free copy of our comprehensive New Zealand Guide.
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