Residential Property Investments in New Zealand

Buying and renting out properties is a popular investment for New Zealanders. 

Advantages of Investing in Residential Property  

If you manage to secure good tenants, and the property market continues to rise, the returns can be very good.  

Risks of Investing in Residential Property 

Just three of the risks associated with residential property investments include: 

• Bad tenants
• Rising interest rates, and
• Falling house prices
  

As with any investment, the key to success is thorough research and diversification. 

Tax on Residential Property Investments

The Inland Revenue Department has clarified the tax position on investments in residential property, which may make the increase in the value of an investment property taxable when you come to sell it. If you have a history of regularly buying and selling properties, even your family home, you should check your tax position carefully. For more information see the booklet Buying and Selling Residential Property (IR313) on the IRD website.

This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is  of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.