Learn How to Invest in New Zealand's House Price Boom

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Invest in New Zealand's House Price Boom

Property investment is a risky venture, but for peace of mind, New Zealand offers the best returns. House prices continue to rise in the country, helped by very low interest rates and a limited housing supply. The most popular area is Auckland, and a 30% increase in prices is not unusual. The cheapest place to invest is on the West Coast. The incentive of no capital gains tax persuades many buyers to invest here.

The Student Rental Market in New Zealand

In central Auckland, there are many blocks of small apartments. These were built specifically to house the large number of students in the area. Many of the students come from Asia to study the English language and require cheap accommodation. This leads to the opportunity of investing in apartment blocks and renting them out to students, who typically stay for at least a year, giving a guaranteed income.

Building a Portfolio of Property in New Zealand

With the various opportunities of buying property to rent out, it can be relatively quick to build up a portfolio. This needs to be managed carefully, and property owners need to schedule regular inspections of their buildings. If the properties fall into disrepair, their value can decrease, and they become less attractive to potential tenants.

When considering property investment, New Zealand can provide short-term returns on investment from rental income and long-term returns from the increasing value of the building.