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Why New Zealand?Where in the world can you find no capital gains tax, no stamp duty or land tax? Where can you find a country with a strong property market that is also beautiful, thriving and encouraging of foreign investment? This country is the first to see the sun - the Land of the Long White Cloud, Aotearoa. This is New Zealand.Ten compelling reasons why you should invest in New Zealand. 1 Strong Property MarketHistorically, New Zealand property has enjoyed strong growth in value. Statistics from the Real Estate Institute of New Zealand show that property has increased on an average of over 9% per annum over the 15 years from 1992 to 2007. New Zealand rental yields are typically between 6-10% in the major cities.
While past performance does not guarantee future performance, it can be considered a good indication of future trends. A long term view should be taken with property. It is what we believe to be the best investment vehicle in the world. 2 Strong Tax AdvantagesNew Zealand has tax laws that significantly benefit land owners and investors. There is no capital gains tax, no stamp duty, no land tax, no inheritance tax and no property purchase tax. New Zealand also has comparatively high depreciation rates making your investment even more attractive.3 The New Zealand GovernmentThe New Zealand Government proactively encourages foreign investment to help meet the growing population's demand for property. There are no major barriers to investing in New Zealand for overseas investors.4 Strong Economic FundamentalsNew Zealand has a strong and stable market-driven economy with record low unemployment rates. After more than a decade of economic restructuring, the economy is well geared for long term international competitiveness. New Zealand has one of the world's most efficient, competition-friendly economies. It ranks third in the world in ease of cross-border transactions, according to the World Competitiveness Yearbook, 2005. This takes into account openness of trade policy, tax rates, monetary policy, wages, unemployment, inflation levels, investment flows and regulation. New Zealand also has the distinction of being ranked the 3rd country worldwide by the Fraser Institute's Economic Freedom of the World annual report, 2005. (insert link http://www.freetheworld.com/release.html to this report) The four key ingredients of economic freedom are personal choice, voluntary exchange coordinated by markets, the freedom to enter and compete in markets, and the protection of persons and their property from aggression by others.5 EnvironmentNew Zealand, located in the South Pacific, is similar in size to Britain and has a population of just over four million. Although relatively young, it has become one of the top holiday destinations in the world with its clean green image, extreme adventure pursuits and vibrant arts and cultural scene. New Zealand has it all - stunning landscapes, cosmopolitan cities, wine-regions, awe-inspiring mountains and lakes, rugged coastlines and beautiful beaches. It's a dynamic first-world society, sophisticated and multicultural.6 Positive Population GrowthBoosted by high immigration, the population growth rate of New Zealand has been one of the highest of the OECD countries over recent years.7 Relatively Untapped MarketAlthough offshore property investment in New Zealand is in it's infancy, interest is increasing as more and more people become aware of the opportunities to be found.8 Favourable Exchange RateWhen buying New Zealand dollars using the UK pound, the US dollar or the Australian dollar, the exchange rate traditionally works in your favour. Visit http://www.xe.com/ for more information on exchange rates.9 Cost of OwnershipOwners of property in New Zealand pay local government property rates. For a $400,000 property, this would typically be just under NZ$2,000 per annum and is used to cover services such as waste water, rubbish and roading.10 StabilityNew Zealand is politically, economically and socially stable, with first world healthcare and infrastructure.« Back |
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