Real estate investment is a powerful way to build wealth because of leverage; your ability to multiply your return on investment using other people's money (usually the banks).
Not since 1987 has there been the opportunity to purchase property for sale at such a reasonable rate—and at such low-interest rates. There is no better time to invest than now to start investing in property in NZ, before the real estate market turns and the purchase price of houses for sale increases. For the first time in many years, you can build a cash flow positive property investment portfolio. Consider these benefits of property investment when looking at houses for sale in New Zealand:
Save on taxes: turn real estate into a tax saving investment
Via real estate property investments, you are able to leverage immediate tax savings. Under New Zealand's tax regime, the harder you work and the more money you earn, the more tax you pay. But did you know that also under New Zealand's tax regime, the 'loss' from investing in rental properties usually results in a tax refund or tax deductions? This lessens the impact of the 'loss'. In fact, the harder you work on building your property investment portfolio and the more you earn—the more of a tax saving you get back. These property tax refunds can be refunded on a monthly, quarterly or yearly basis.
Multiply your return on investment with property
Property investment in NZ gives you the ability to multiply your return on investment using OPM (Other People's Money – The Banks).
- Investment property can provide you with substantial passive income in the future
- You can to build up a property investment portfolio that will provide a passive return of $150,000 + each year
- Property has out-performed shares, bonds and bank interest for over 40 years
Want to buy real estate? You don't have to have a cash deposit
Did you know that if you have reasonable equity in your own home, you don't have to find the deposit for an investment property? You can use 100% of the bank's money to build a property investment portfolio and build wealth.
Real estate investing for overseas property investors
The Government encourages investment in New Zealand:
- You do not have to have residency to buy houses for sale in New Zealand
- There is no "capital gains tax'' on real estate in this country for long-term property investors
- Our government guarantees titles to real estate properties
- New Zealand has a cross-taxation accord with many countries (you would have to check with your country's Tax Department)
- The cost of real estate ownership in New Zealand to you is our Local Government Tax (also known as council rates). For a $400,000 investment property, this would be, on average, just under NZ$2,000 which includes sewerage, rubbish, water and roading
- New Zealand is politically, economically and socially stable, with first world healthcare and infrastructure
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