What are the advantages of New Zealand real estate over Australian real estate?

More and more people choose to invest in overseas real estate. If they choose between New Zealand and Australia, what are the advantages of New Zealand real estate compared with Australian real estate from the perspective of real estate investment? Come and have a look with me.

New Zealand and Australia, both in the southern hemisphere, have many similarities in climate, culture and politics.

Climatically, New Zealand is milder, neither too hot nor too cold. Most parts of the country are covered with green vegetation, which has the reputation of God's back garden, especially suitable for children's growth and old-age care.

The following two advantages are the most prominent!

1. Urban structure and population growth

New Zealand currently has only one core city, Auckland.

New Zealand has a population of 4.6 million, of which 1.40- 1.50 million live in Auckland, and the net inflow population grows rapidly every year.

Every year, more than 33,000 new immigrants need 6,543,800+6,000 new houses. However, only 8,700 houses have been approved for construction, which is a big gap. After several years of accumulation, the housing gap has reached 84,000 sets.

The shortage of housing directly led to the rise of housing prices-2011-2016 years, and the housing prices in Auckland rose by 66.5%; The rental return rate is about 4-5%; Property appreciation is 7- 10%.

This steady growth trend is suitable for long-term investment, not for short-term speculation.

2. Buying a house is cost-effective, not only without paying taxes, but also with low holding cost.

One advantage that cannot be ignored in investing in New Zealand real estate is "tax exemption". In New Zealand, the cost of real estate holding is only property fee, municipal fee and lease management fee (the house is rented to the developer).

Land tax, property tax, stamp duty, inheritance tax and other taxes levied by other countries are not borne by New Zealand; Even if you hold the property for 2 years before selling it, you don't need to pay corporate income tax-it directly reduces the transaction cost.