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NZ or Aus?

Have you ever considered investment property in S.E. Queensland? Australia offers fantastic opportunities and benefits for investors.

 

Here are some of the facts:

 

Population growth

 

It is a commonly accepted fact that population growth is the fundamental factor that affects demand and capital growth in property. Without population growth a number of problems emerge:

 

1. Stunted capital growth.
2. Problems finding good tenants.
3. Hassles in banks finding value for mortgage funding.
4. And more….

 

Our philosophy is simple: The higher the population growth, the better!

 

In New Zealand numerous reports indicate that deaths will exceed births by the year 2051. While this seems far away, the fact that this trend can even be predicted is worrying. Population growth in New Zealand is slowing every year. Best indications show that a population increase of 20,000 households in New Zealand annually is ambitious.

 

Looking at Queensland, population growth is so high that Government reports indicate that they will need housing for more than 800,000 new households by 2031. That equates to over 700 new homes needing to be constructed every week, or 40,000 househoulds annually.

 

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Economic Factors

 

Few will argue that Australia is the economic powerhouse of the Pacific, and a major player globally. In fact, Australia did not even technically enter recession in 2008/9.

Have you ever wondered why so many thousands of New Zealanders move overseas each year – especially to Australia? It’s to follow the money. If you want to make serious money in property investment you need to do the same – follow the money.

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Tenancy Considerations

 

Most NZ property investors will admit that tenancy problems are the biggest headache they face. In fact, poor tenants is probably the number one concern for most people considering property investment – and with good reason.

 

Here are a few interesting points on the tenancy reality in Queensland:

 

1. Did you know that in Queensland it is illegal to be behind on your rent?

 

2. Property managers in Queensland must hold a full real estate licence, unlike in NZ where anybody can be employed as a property manager without any training or experience.

 

3. With the population growth rate being what it is in Queensland, rental property is in huge demand, and it has been that way for years.

 

There are many more differences in the tenancy law in Queensland that favour the property investor.


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Interest Rates

 

Interest rates are consistently lower in Australia when compared to New Zealand. This helps with affordability and cashflow considerations.

 

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Currency Exchange Rate

 

If you ever decide to sell your investment property and earn a capital gain you will instantly receive an increase of about 17-20% the moment you convert your Australian gains to New Zealand currency due to the exchange rate. That is quite a handy “bonus”.

 

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Scarcity of Land

 

Did you know that a moratorium has been placed on the majority of land in Brisbane and the Gold Coast meaning that this land cannot be developed? This is part of the Government’s efforts to take control of where the population settles because the population growth is so high. This scarcity of land, combined with huge population growth, creates the perfect environment for capital growth.

 

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Favourable Tax Laws

 

Did you know that you can still claim all that tax losses on your Australian property against your NZ income to receive tax refunds, yet as if the property were located in NZ? What’s more, you also apply these same tax losses as tax credits in Australia to offset against any profits made when you decide to sell your investment. This dramatically reduces any capital gains tax you may be liable for. This benefit does not available for Australian citizens located in Australia purchasing investment property.

 

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