In the years leading up to the Global Financial Crisis (GFC), residential property investors did well in New Zealand. New Zealand’s favourable tax regime led to property investment becoming the preferred method for many people attempting to build wealth, particularly for their retirement.
The major incentive for property investment plans in New Zealand is that New Zealand has no capital gains tax. There is no tax to pay when you sell one or more investment properties for a profit, however if the tax authorities believe you are trading in property (buying and selling frequently for a profit) your profits will taxed as part of your income.
Property is also fairly easy to understand compared to other forms of investment, and the average person is able to invest in property part time while holding down their full time job or running their business. Property investing can be as ‘hands on’ or as ‘passive’ as you would like to make it, but it is always sensible to seek property investment advice from a professional.
Your SHARE adviser will not only provide you with advice on New Zealand property investment, but also the wide range of mortgage options available to you for your investment property. They can also recommend insurance cover to make sure that you protect both your asset and your ability to fund it.