Foreign property ownership in NZ
It is often reported and a common fear, that foreign buyers are buying up huge swathes of New Zealand properties.
A report by the New Zealand Institute of Economic Research (nzier.org.nz) dispels the idea that it is foreign owners who are buying up residential properties in New Zealand and driving prices higher.
From their research, they estimate that foreign cash buyers account for only 8% of all annual transactions.
Of the remaining 92%, 45% of purchases are from property investors, 28% people moving to a new home and 19% are first home buyers.
So is it in fact the demand from property investors that could be helping accelerate the increase in property prices?
Home ownership continues to fall in New Zealand and as interest rates creep higher and property values remain high, this is only going to continue.
30 years ago, an average house cost 2-3 times the average income. By the peak in 2007, an average house cost around 6 times the average income.
Around 35% of the population are renting in New Zealand; while 65% own their own home either directly or through holding it in a family trust.
If you are one of the those people looking to purchase your first rental property or to expand your portfolio then talk to us.
We can help you out with advice about the suitability of any properties for investment and advise on potential returns.
Director - Selwym Property Management