Tips for Australian Property Investors Considering Buying an Investment Property in New Zealand

When Australian property investors consider where to purchase a vacation property to add to their portfolio, New Zealand is a strong contender.. Australian citizens are one of only a few groups of people that can freely purchase New Zealand property. Considering New Zealand is just across the ditch from Australia, it’s easy to see why so many aussies choose Aotearoa as a place for a second home or investment property.

Here are some tips and information relevant for Australian citizens considering purchasing an investment property in New Zealand.

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What is the Overseas Investment Amendment Act and how does this impact Australian property investors?

The Overseas Investment Amendment Act exists in New Zealand to place a fee on overseas residents purchasing property in New Zealand. There are some exceptions, and luckily for Australian citizens, they are exempt from the rule which prevents them from paying the associated fee.

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What investors should consider when considering purchasing a New Zealand property.

When beginning to search for the ideal investment property in New Zealand, the following points may be helpful:

Find the right buying agent

Search specifically for a buying agent with trans-Tasman experience. Australian investors have the option to select an agent in Australia or in New Zealand. While an agent in either country will be capable of assisting them, the agent having trans-Tasman experience will make the process of finding the right property and purchasing it more seamless.

Find trustworthy individuals to inspect the property

If an investor is unable to make the trans-Tasman flight to visit the potential investment property in person, finding a trustworthy builder to inspect the property and give you a formal report is crucial.

Transfer funds smartly

A potential hidden expense involved in the process is transferring the deposit for the investment property to complete the purchase. Some large banks charge excessive fees to convert the deposit from Australian Dollars to New Zealand Dollars. Do some research on transfer providers. Their fees are often less expensive than those of large banks.

Consider hiring a property management company

After successfully purchasing the property across the ditch, investors will look to find suitable tenants or list it as a short-term rental. Although this may be done independently, managing an investment property overseas has the potential to be inconvenient and difficult. Consider using a local expert to manage the property: it certainly helps to be on the same timezone as your guests!

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How to efficiently rent an investment property in New Zealand

While some investment property owners may choose to manage their property independently or leave the responsibility with a friend or family member, it is better to leave it with the experts. After all, this purchase will be one of your biggest assets and it’s important to have qualified property managers involved.

If you decide to rent out your investment property on a short-term basis, Bachcare is a great choice. Bachcare offers services that make renting out an investment property simple and stress-free for the property owner, such as:

• Guests book their accommodations via a secure online booking system, offering peace of mind for both guests and property owners.
• Property owners are kept informed of their property’s performance; owners receive notification when their properties have been booked via email.
• Bookings are screened by Bachcare, where possible.
• Live customer support is available year round for guests. This prevents the owners from having to deal with emergencies relating to their properties at inconvenient times.
• Bachcare can list a property simultaneously across multiple holiday accommodation websites to maximize bookings, at a property owner's request. Listing the property across multiple platforms and keeping track of bookings made on each website could be significantly time consuming if done independently.
• The Bachcare owner portal allows property owners to view guest's bookings, block available dates for personal use, and track their property's performance.
• Local property managers prepare the property prior to the guest's arrival and clean the property after a guest's stay, at the expense of the guests.

To learn more about using Bachcare to manage your New Zealand investment property, request a free information pack here.

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Conclusion

Australian property investors have a unique opportunity to add diversification to their portfolio by acquiring an investment property in New Zealand without the extra fee that residents of other countries are charged as a result of the Overseas Investment Amendment Act.

Though the prospect of managing an investment property overseas may be intimidating, Bachcare is ready to help owners maximize their investment, and take care of their property and guests when they are not around.

Find out more and speak to one of our new owner advisors today.

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