Why invest in New Zealand?

For a number of years, New Zealand is one of the most interesting places on earth with regard to Real Estate Investment.

A stable, free economy with world-wide recognition and which is continuously producing a surplus, a low rate of inflation and long-lasting economic growth, together with stable Government Policies and a business friendly law structure, are appealing factors for the astute investor, offering ideal conditions for a good, sound investment.

The reconstruction of New Zealand's economy over the last decade produced a significant reduction of governmental influence and a bigger orientation to the actual free market economy.

These reforms been accompanied by the floating of the KIWI-Dollar, reduction or elimination of import-duties, privatisation or sale of state-owned enterprises and a deregulation of the workforce; these sometimes fundamental changes lead to one of the most market-orientated economies in the OECD and the Asian-Pacific Region.

PROPERTY IN NEW ZEALAND:

A SOLID INVESTMENT
WITH ABOVE AVERAGE YIELDS
AND GOOD PROSPECTS FOR CAPITAL GROWTH

For commercial real estate in A-1 locations, yields between 8,5% and 9,5% are achievable, in secondary locations up to approx. 13%.
The yields are usually net yields, which means that the tenant is paying for all outgoings.

In addition, most lease contracts have a "ratchet clause", which ensures that at rent review dates, the rent can not fall be below the initial rent paid.

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