Those keen on property investment in New Zealand need to consider the prospect of tenancy. The most obvious cities in which to invest would be the ones with the greatest populations; Auckland, Wellington and Christchurch. Investors are more likely to attract a greater number of potential tenants, and wages earned tend to be higher in these areas.  Interesting to note though, is the imbalance between wages and rental prices. A recent article in the NZ Herald shared that prices are rising exceptionally quicker than wages. Over the last four years, the median rental for a three bedroom in Auckland, for example, has gone up 15 per cent. In contrast, inflation only rose 8.7%, and wages 9.7%, a…

Earlier last year a study was released in New Zealand, detailing the affordability of housing in seven major countries around the world: Canada, United States, United Kingdom, Ireland, China, Australia and New Zealand. The report stated that, in order for a home to be considered affordable, it should be no more than three times the total income of its owners.  Results classed New Zealand as a severely unaffordable market, with the average home (in main centres) being upwards of seven times above owner income, and of course since this study the situation has got even worse in some NZ cities. In contrast, while America had some expensive cities, the majority of metropolitan areas sit under th…

Now is the time to buy. With the United States still experiencing a struggling economy, property investment abroad is an excellent opportunity to consider. Compared to purchasing at home, buyers are finding they can yield upwards of 15% annual net return offshore, compared to only 1-2% here in New Zealand. And knowing the American housing market will eventually recover, there could be some strong capital gains to be made in the future. But how do you know what you’re getting is a jewel in the rough? Understandably some buyers experience hesitation. The property is not available for inspection on their font doorstep and the cost involved in travelling overseas, only to discover a lemon,…