Kiwi property bearing fruit for offshore investors
Offshore investors are sinking cash in to New Zealand commercial property despite the recent hike in the Kiwi dollar.
New Zealand has several attractions for offshore investor:
- A stable and corruption free investment and political environment
- Uncomplicated land title system
- No stamp duty
- No capital gains tax
- High rental income returns
Yields on New Zealand commercial property have often showed a better return than many other countries.
For instance, for the same investment cash, the yield in Hong Kong is about 3% but 7% - 10% in New Zealand.
The largest New Zealand commercial investment this year was the sale of the Pernod Ricard building in Auckland for NZ$26.6 million (£11.25 million). A syndicate of five high net worth European investors put the deal together.
This year, investors from Singapore, Malaya and South Korea are showing interest in other commercial sales.
New Zealand has suffered
New Zealand has suffered from the global recession, and although unemployment is running high, the effects have not reached the levels of many other countries. The Kiwi dollar is showing a trend of appreciation against the Pound and Us Dollar.
Current standings are NZ$1.00 equals £0.42 and US$0.70.
If you are looking to invest in New Zealand directly or via a QROPS, local experts suggest holding off until the NZ$ reaches the US$0.60 mark.
New Zealand Prime Minister John Key has announced that the economy may be over the worst of the recession and is confident of third quarter growth.
“We’ll continue to grow more aggressively as the world recovers,” he said.
Dairy exports, New Zealand’s second-biggest foreign-currency earner, have surged 55% in the last two months alone.
One of Britain’s biggest agricultural and rural property companies, Smiths Gore, is channelling millions of pounds of UK investment funds into Kiwi rural properties.]
“UK farm values have fallen from 2008, but not to the extent they have in New Zealand. This has created an investment disparity which many of our clients have expressed an interest in taking advantage of, said Giles Wordsworth, head of Smiths Gore’s National Farm Agency.
Whatever your financial goals or aims, seeking professional highly regulated advice as early as possible from Qrops Adviser, is the first step in securing the best possible life in retirement. Contact us via the contact Qrops Adviser page, call us direct on 0032 (0)2 400 0087 or email us at info@qropsadviser.com.
