Add listing Log in

The other side of the Earth

01.07.2010
Author: Ginetta Vedrikas, Homes Overseas UK Edition
93
The stunning beauty of New Zealand is attracting more and more foreign home buyers, despite the fact that in Europe this green archipelago is on the other side of the world. How are things going on in the real estate market in the “antipode country”?
Perhaps the main attraction of New Zealand is its landscapes. The country is associated with hills and valleys, snowy peaks like in the Lord of the Rings movie, and a magnificent Pacific coastline. New Zealand is located on two large islands - North and South, its territory is 268 680 sq. km, about the same as in Italy. In addition, New Zealand is at the same latitude as Italy (in the southern hemisphere only), but has a more temperate climate. The first European saw these shores in the middle of the 17th century, and in the 18th century. an agreement was signed under which New Zealand passed into the possession of Great Britain. Signs of recovery More than half of the 4.3 million people live in four major metropolitan areas - Auckland, Hamilton, Christchurch and Wellington. Like the vast majority of countries, New Zealand has not been spared the impact of the global crisis. So, in January of this year, only 812 transactions of purchase and sale of new housing were concluded throughout the country, and this figure turned out to be the lowest in 34 years. In general, the number of real estate transactions in January amounted to 3706 - this is at least since the beginning of the 90s. At an auction held last spring, a villa in the Whisper Cove complex, which previously cost $ 730,000, was eventually sold for $ 340,000. However, even then experts were confident in the rise of the market in light of the fact that the number of buyers at auctions reached several hundred. Harcourts CEO Brian Thomson says the New Zealand real estate market is showing signs of recovery: “Prices are generally stable and there is a shortage of quality housing in some parts of the country. We hope that by the end of this year the level of sales will be higher, although prices are unlikely to rise. However, as always, there is a demand for quality housing in a good location, and it only takes time for investors to return. " Indeed, according to the New Zealand Real Estate Institute, the lowest average cost of housing in the country's business capital, Auckland, was from July 2008 to April 2009; turned out to be positive. Continuous Growth Investment buying properties in the lower end of the market can be risky, but those planning to relocate to New Zealand can significantly reduce costs through tax breaks for immigrants. Andrew Haynes, a financial consultant for the relocation to Australia and New Zealand at Montfort International, notes that more and more people are willing to leave Europe: “Previously, our company only operated in Australia, but we received so many requests for relocation. to New Zealand to explore this market. And we can say with confidence that the demand for it is constantly growing. " Clients choose New Zealand for a favorable climate, stable economy, for many Britons it is also family ties, while Andrew Haynes himself believes that the main incentive is a way of life. Vineyard overlooking the mountains So what's on the New Zealand real estate market? The cheapest apartments in Auckland and metropolitan Wellington cost $ 200,000-270,000. For $ 440,000 in Central Otago, on the South Island, away from the major cities, but near the city of Cromwell, there is a vineyard with stunning views of the snow-capped mountains and a possible income, so how the land is currently being rented by a local winery. While living here, it is easy to get to ski resorts, golf courses and lakes. On a high budget, you can buy a five-bedroom country house with a pool and 2 hectares of land with an orchard and horse paddock for $ 920,000. This Savills property is located near the beaches of the popular Stillwater area near Auckland. New Zealand Property Solutions sells housing in new developments across the country, including Auckland, Wellington and Christchurch, as well as in the North Island Bay of Islands, and Queenstown and Wanaka in the Southern Alps on the South Island. Among the offers of this company - apartments in the new complex Celestion Apartments in central Auckland, five minutes from Viaduct Harbor. Buyers are guaranteed rental income of 6% of the value of the property for two years, in addition, the price already includes a set of furniture for $ 16,500. Prices for apartments with two bedrooms and a balcony start at $ 280,000. Completion of construction is scheduled for mid-2010. , rental income in New Zealand cannot be called high - even in the best years for the market, it did not exceed 4% per year of the value of real estate. Real estate consultant Kat Jeeves of New Zealand Property Solutions says that compared to many other countries, the New Zealand market has not been hit too hard by the global crisis for reasons: “Thanks to the government's measures to stabilize the country's economy, mortgage rates have dropped markedly, making bank financing more affordable for real estate buyers. ” Many pluses Another incentive for investors can be the World Rugby Championship, which will be held in New Zealand in 2011 - such major events in the world of sports usually attract interest in the country and have a positive effect on the economy. But even without this, the analysis of the country's real estate market inspires optimism. Thus, Cat Jeeves believes that, unlike many countries, New Zealand is not threatened with an oversupply of housing: “On the contrary, there is a shortage of housing facilities, and in the current situation it can be argued that the lack of supply will not be filled in the foreseeable future. Our banks are strong and provide loans on traditional terms - about the same as over the past few years. " How should you negotiate a mortgage loan? Mary O'Brien of New Zealand Mortgage Solutions advises many buyers, approximately 90% of them are investors looking to find the areas with the highest rental income. "The down payment is usually 30%, with the remaining 70% being helped by a leading New Zealand bank." The cost of living in New Zealand is quite high - according to Knight Frank, it is comparable to that in London. It is no coincidence that the authorities are going to stimulate demand from foreign private investors. Mary O'Brien talks about the financial benefits of buying a home in New Zealand, such as no stamp duty, no tax on housing gains, and low legal fees. And, of course, perhaps the most important advantage of the country is the extremely high quality of life, which attracts people from all over the world here.
0
All articles by this country
All articles
Property in New Zealand
Discussion