Summer in New Zealand means Christmas New Year holidays. Most people enjoy swimming at the beaches or the picturesque lakes, bushwalking (no snakes or deadly spiders), BBQs at the beach or at your house and generally a very relaxing time for everyone. Nice to have evergreen fields, blooming flowers and trees, daylight saving and warm days. It also reflects on the housing/finance market with many settlements at Christmas and new properties on the market late January. Great time to start househunting after your holiday, but remember to get your preapproval from Mary before househunting!!! New Zealand is a great place to live not only for lifestyle but for jobs, education and purchasing property. A huge factor is low interest rates. If you require a mortgage preapproval (valid 3 months) and seriously looking at properties in New Zealand then contact Mary.
So much around the world and in New Zealand has occurred in 2016 that have rocked the world. First Brexit in UK, then Donald Trump elected US President. In New Zealand 14 November a 7.8 magnitude earthquake hit Kaikoura and badly shook Wellington. As a NZ economist said "The market may be shaken and stirred, but it is far from broken.". Then the great NZ Prime Minister John Key steps down in December after 10 years at the top with so many achievements.
Financially from the Reserve Bank of NZ in October brought in new restrictions on Loan to Valuation Ratios to all New Zealand banks with maximum lending for investment property is 60% and owner occupied is 80% nationwide. The exemptions are new land and construction, refinancing dollar for dollar from another lender, construction LVR is 70% for nonresidents and 80% residents. The Reserve Bank took this action, as the property market throughout the whole of New Zealand was extremely active as well as the new "Responsible Lending" law. With tighter lending restrictions, higher deposits for all borrowers, interest rates still at an all-time low, lack of supply and all time record net migration - people will still look at NZ property.
GDP for Q2 (June 2016) was 2.8%.
Unemployment Rate for Q3 2016 was 4.9 down from 5.5% in Q2 2015.
Policy changes from the New Zealand banks are that there will be no future lending to residents and nonresidents earning foreign income who are not New Zealand or Australian citizens or do not have New Zealand Permanent Residency.
All nonresidents now, must have a NZ tax file number before they can settle any New Zealand Property and must provide their overseas tax file number.
Property Market - New Zealand average median house increased 12.4% in November 2016 to $624,675, Auckland Region increased 12.8% to $1,051,387, Tauranga increased 26.5% to $665,155, Wellington Region increased 20.6% to $565,631, Nelson increased 15.4% to $489,338. Christchurch increased 4.3% to $501,229, Queenstown Lakes District increased 32.2% to $1,000,205 and Dunedin increased 11.4% to $341,604.
When you look at such a diversified value in New Zealand and look at rental return on the Government website (outlined on this website "Useful Links"), you will see the capital growth and rental returns that suit you pertaining to the New Zealand location you wish to purchase.
All investors for NZ investment property must be aware of the law "Bright Line Test" whereby all investors who now purchase residential NZ property with the intention of selling and making a gain within the first 2 years will require income tax to be paid on any gains and will be taxed at the seller's normal income tax rate (refer to your NZ Accountant)
Remember there is No Stamp Duty and No Land Tax in New Zealand. You normally require your deposit for the property plus approximately NZ$1,500 legals to NZ solicitor to acquire a New Zealand property if you have a NZ or Australian passport/citizenship.
Refer to my "Case Studies" on this website of many Australian residents, Ex Pat Kiwis living in Australia and overseas people investing or moving to NZ. There are many happy clients. Contact Mary from New Zealand Mortgage Solutions Pty Ltd for a preapproval from a choice of leading New Zealand banks/lenders.
Contact Mary of New Zealand Mortgage Solutions for assistance
Mary O’Brien sets out to help New Zealanders people achieve a life’s ambition of owning property or investing in a great property asset ‘Downunder’.
Mary O’Brien is uniquely positioned to help the New Zealanders obtain finance in New Zealand and Australia. Accredited with 13 New Zealand and 35 Australian banks/lenders, Mary can obtain a bank letterhead pre-approval for a NZ or Australian property. It gives you, the buyer, the confidence and comfort in knowing just how much you can borrow and is usually valid for 90 days.
Mary through her personal experience of living in Australia and New Zealand, understands the ups-and-downs, the twists-and-twirls of purchasing a property to live in or as an investment. She is delighted to be in a position in being able to assist New Zealanders Downunder. To read the latest financial, real estate and lifestyle news in New Zealand, checkout our newsletter.
Quickly see your repayment and interest options though our easy-to-use calculator. You can even determine the impact of any extra repayments you may have. Learn more about our mortgage calculators.
We have compiled a handy checklist of you so you can begin to understand the process involved in getting a New Zealand mortgage.
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