Introduction - on this page you will find links to
details of New Zealand villas for sale, New Zealand holiday rental accommodation and shared housing in
New Zealand. New Zealand comprises two Islands, called South Island and
North Island, and borders Fiji, Tonga, New Caledonia, and Australia (200 km
away). North Island is the more developed and has New Zealand’s capital
Wellington and the city of Auckland. . The north of New Zealand is subtropical
and the south temperate. The warmest months are December, January and February,
and the coldest June, July and August. In summer, the average maximum
temperature ranges between 20-30ºC and in winter between 10-15ºC. Scenery is
breathtaking, with mountains, rainforests, rivers and lakes and miles and miles
of coastlines. Its mountain and hill scenery has been described as similar to
Scotland in the UK. Comparable in size and/or shape to Great Britain, New
Zealand has a population of only 4 million people. It has one of the lowest
crime rates of the developed world, and where the police do not carry guns. It
offers an unpolluted environment, low rates of poverty and a health service
which can compete with the UK’s NHS. Many Brits emigrate to New Zealand.
The New Zealand
Property Market -
New Zealand’s property market has seen good property gains over the past few
years, with gains of 7.5% to 15% per annum. It is still seen to have very good
long term prospects, but perhaps at lower growth rates in the short to medium
term. The general standard of living is on a par with Europe, but at a markedly
lower cost. Add this to the spectacular countryside, lower unemployment rates,
unpolluted environments in most areas, low crime rates, and hard working but
laid back people, and it is not difficult to see why property investment is such
good value. However, with annual capital growth predicted to be in the region of
2% over the next couple of years, probably the best bet for most investors today
would be to adopt a medium to long term approach now, by investing for
rental
income now and reselling some years ahead when capital growth will undoubtedly
pick up again.
Renting is becoming more and more popular in New Zealand as mortgage rates rise.
As a landlord you can expect to get premium rates in areas near schools and
amenities, and you have the choice of two types of rental – fixed term, or
periodic tenancy. Tenants will be expected to pay a deposit (bond) to you on
signing the tenancy agreement, normally two week’s rent, although you can go as
high a four weeks. The deposit money is deposited with the Bond Centre at the
Ministry of Housing within 23 days, and at the end of the tenancy, your tenant
has to produce the deposit receipt to claim the money back from the Bond Centre.
Holding this money independently can be helpful for both parties. You will be
expected to charge rent fortnightly, in advance, and will not cover the cost of
utilities such as telephone or electricity.
There
are no restrictions on the level of rent a landlord can charge, nor on increase
levels, providing the landlord gives sufficient notice, or if there has been no
rent increases over the previous six months. Tenants may challenge an excessive
increase by going to a Tenancy Tribunal to assess the rent independently. If you
are investing for rental income, then the Residential Tenancies Act 1986 governs
and protects the rights of both landlord and tenant. Non-residents can invest in
property in New Zealand although there are some restrictions on very large
estates and agricultural land. Property purchase does not however give you the
right to live permanently in New Zealand and all immigrants are required to go
through the same application process.
New
Zealand has a relatively standard income tax system with rates ranging from 0%
to 39% on a sliding scale, with corporation tax in the region of 33%. Net rental
income is taxed in New Zealand, but capital gains are not normally taxed.
Auckland is a key property area, with average city yields currently 6% per
annum. Apartments in Wellington also offer value for money and good rental
yields of 7.5% to 10%. These compare with average rental yields of 5.5% and
house price rises of 4.5%.
How to Buy a Property for Sale in New Zealand -
Purchasing property in New Zealand is different from the UK. Most homes up for
sale have what are called “Open Home Days”, advertising the dates and the times
of opening in newspapers or with estate agents (or “realtors”). All interested
parties then have an opportunity to look round the property on the same day,
talk to the seller and the agent. This introduces an element of competition and
quick decisions into the day, so prior research into the local area, planning
restrictions etc are advisable.
The
next stage is that the house either is advertised at a fixed price or goes to
auction. If put up on the fixed price basis, potential
buyers have to submit a
formal written offer to buy the property at a given value. This offer is then
given to the seller by the estate agent or your lawyer. You can add conditions
into your offer, such as subject to a satisfactory independent evaluation being
conducted on the property by you, clear title search, a building inspection
report coming back with no problems having been found, a satisfactory LIM (land
information memoranda) report result, mortgage financing being approved.
If
your offer is accepted a Preliminary Sales Agreement will be drafted, specifying
a settlement date, usually six to eight weeks from the contract date, and
subject to satisfactory completion of conditions if these were included in the
original offer. A 10% deposit is then payable to the lawyer or agent.
If
buying at auction it is essential that all research and building inspections are
carried out prior to the auction as all properties are sold on auction day “as
seen” i.e. unconditionally. You will also need to bring the deposit money to the
auction, and the balance of the price will be due within days of the sale, so
mortgage monies must be in place before the auction. If you need to raise
finance to invest, then foreign buyers are free to obtain local mortgages in New
Zealand, or alternatively a mortgage in their own country. Costs are low
on property purchases in New Zealand. No stamp duty is payable on a property
purchase and all realtor fees are met by the seller. Solicitors usually charge a
fixed fee which can be negotiated before the conveyancing process starts. On
average, budget for 4.5% to 6% of the purchase price for your total costs.
The
process is different in New Zealand to the UK. Sellers are obliged to obtain a
Land Information Memorandum (LIM) from the local authorities at the beginning of
the process, which can take 1 to 2 weeks. This document provides evidence of the
legality of the building, such as rates owing on the land, future zoning plans,
stormwater and sewerage details and any special land features. The seller must
register the title through Land Information New Zealand, either online with his
solicitor/conveyancer acting as the registrar, or through manual registration
with the Land Titles Office, submitting the title and relevant documentation.
Solicitors are required to double-check all documents before registering,
including checking the identification of both parties. Other documents
registered include the written authority for the solicitor to register the
property, and the signed transfer of property.
History and Cultures of New Zealand - The first indigenous people in New
Zealand were from the Polynesian Maori tribe. Their culture still lives on
strong today. The first person from Europe to visit New Zealand was a Dutchman
Abel Tasman in 1642. A century later, Captain James Cook in 1769 and 1779
charted and explored the islands and “put them on the map”. An increasing number
of Europeans came to settle in New Zealand and in 1833, after trouble amongst
traders and settlers, the British Government appointed James Busby as British
Resident to put things in order. In 1835 Britain signed a Declaration of
Independence with 34 northern Maori Chiefs, declaring New Zealand to be an
independent state under British rule, but acknowledging Maori rights. This was
further developed into the Treaty of Waitangi in 1840 which is widely regarded
as New Zealand’s Founding Document. New Zealand became under British law, whilst
guaranteeing Maori authority over their land and culture. Until very recently,
New Zealand has suffered from a “brain drain” with many nationals emigrating to
the USA and the UK. However, with a new immigration drive, this trend has
reversed, and New Zealand is now actively encouraging professionally qualified
foreign nationals. This is helping to create a more skilled economy, although
agriculture is still a core national occupation. There is a real recognition of
the importance of work-life balance, and flexible work arrangements, job sharing
and part time work, home-based work and paid parental leave have all been
introduced to help workers in New Zealand achieve a better balance between their
work and personal lives.
Population Demographics - Education and health systems
in New Zealand are of a high standard. The public health system is based on the
NHS model in the UK. If you are not a New Zealand resident, you may have to pay
for some services. If you can't afford to pay, then hospitals will arrange a
payment plan with you. You will not be refused emergency care if you are with
funds. Doctor and dentist routine visits have to be paid for, but more expensive
services such as hospital treatment and such preventative screenings are covered
by the public health system. Subsidies are available for children and for lower
income families. An accident compensation scheme (ACC) which is financed through
taxes provides personal injury cover for all New Zealand citizens, residents and
temporary visitors in the event of an accident. The scheme covers your treatment
costs, providing you agree to waive the right to sue for personal injury. The
education system in New Zealand is state funded, and of a high standard.
Schooling is compulsory from the age of 6 to 16 (15 with the parents' and the
school's permission). While there are many private pre-school centres, most
children actually start going to school at the age of 5. Early education is
considered essential to children's learning, and services are provided by a
range of operators, from private businesses to community church groups and
voluntary agencies. Usually children attend a local school within the
neighbourhood zone. Free advice on the type of children’s services available in
any particular area can be sourced from the Ministry of Education, or the
Plunket group, a not-for-profit organisation that provides support services for
children under 5 years of age.
How to Get There - New Zealand is 12 hours ahead of UK. Its largest
airport is Auckland, and other international airports include Wellington,
Christchurch, Dunedin, Hamilton, Palmerston North and Queenstown. At least 10
major airlines including Air New Zealand and Emirates fly to New Zealand. Flight
times range from 25 – 29 hours, including stop offs, depending on whether you
travel via Asia or Dubai.
Tourism and Entertainment -
There is a wealth of things to do in New Zealand. Very much an outdoor place,
you can indulge in several high adrenalin activities such a bungee jumping,
white-water rafting and caving. There are many national parks to explore, and
miles of mountain passes for hikers. New Zealand has a world reputation for
wine, so a visit to their vineyards are a must. There also many museums and art
galleries in the cities.
