Buying investment property
The Queenstown, Clutha and Invercargill property markets continue to attract investors from home and abroad. Many are motivated by Queenstown’s ‘quality of life’ aspects and others by the way the investment numbers stack up so attractively. For investors in Southland and Otago, the sale prices mean an affordable opportunity to step onto the property ladder, with rental income often taking care of the mortgage. Whatever your motivation for choosing to invest in and spend time in the South of New Zealand we wish you many happy returns to this beautiful place that many of us are lucky enough to call home.
Australian and Overseas investors
Buying property in New Zealand is EASY!
- No stamp duty
- Average Conveyancy fee NZ$2000
- Very few barriers to purchasing
Buying property here is the same as investing anywhere, and for certain circumstances, the ‘Overseas Investment Office’ has a number of procedures to ensure it all runs smoothly. We recommend you check if the OIO rules apply to you and your investment, and in that case it’s worth enlisting a legal professional to help you get through the paperwork.
From 1st October 2015 new laws are in place around property investment by overseas buyers. These include:
- All non-residents and New Zealanders buying and selling any property other than their main home must provide a New Zealand IRD number as part of the usual land transfer process with Land Information New Zealand.
- In addition, all non-resident buyers and sellers must provide their tax identification number from their home country, along with current identification requirements such as a passport.
- Non-residents must have a New Zealand bank account before they can get a New Zealand IRD number.
- In addition, a “bright line” test has been introduced for non-residents and New Zealanders buying residential property, to supplement Inland Revenue’s current “intentions” test. Under this test, gains from residential property sold within two years of purchase will be taxed, unless the property is the seller’s main home, inherited from a deceased estate or transferred as part of a relationship property settlement.
Find here some frequently asked questions about the process.
Talk to the professional property management team at hoamz to rent about how to minimise stress and maximise returns on your residential investment.