This article discusses The Comparison Between Australia and New Zealand Property Market’s advantages and disadvantages. For starters, the former is much cheaper to purchase a property than the latter, even though the latter’s capital gains tax is much higher. Moreover, renting a property in a foreign country allows you to test out the living conditions before buying a house. And you can even find cheaper rental property in New Zealand compared to Australia!
Renting a property is a good way to get a feel for living in New Zealand
While living in New Zealand can be expensive, renting a property is the most affordable option. Rent is usually calculated on a weekly basis, so it is important to keep this in mind when comparing advertised rents. Traditionally, real-estate agents charged tenants a letting fee equal to one week’s rent before they actually took possession of the property. But recent legislation prohibits real-estate agents from charging this fee.
If you aren’t sure whether to buy a property or rent one, renting a property is a great way to sample the housing market. However, keep in mind that housing prices are estimates and are subject to fluctuation. Although the city life is attractive, rural areas of New Zealand can provide many benefits as well. If you are planning to buy a property, you should be aware of the restrictions on purchasing property. The Overseas Investment Amendment Act is a fee placed on overseas residents who purchase a property in New Zealand, luckily Australians are exempt from this and can purchase property without paying such fee.
Invercargill is the most affordable place to live in New Zealand
If you are looking for cheap housing in New Zealand, Invercargill is a good choice. This laidback city is home to more than 50,000 people. It is a good place to raise a family and enjoy the low unemployment rate. Its southern lights, or Aurora Australis, are also visible from the city. In addition, you can also study for free at Southern Institute of Technology.
The cost of living in the Southland region has increased by 21.3 percent compared to December 2021, and Invercargill still trails behind the other regions. A two-bedroom house in the city center costs just $570 per month. The region is popular with retirees and young people. It is also an affordable place to buy a house. Those who are on a tight budget can look forward to a low monthly rent in Invercargill.
Cost of purchasing a property in Australia is cheaper than in New Zealand
While the median price of a property in Auckland is $845,000, the same price in Brisbane is $682,000. In addition to the price of a home, the cost of conveyance is lower as well. While the price of stamp duty and other taxes in New Zealand is higher, it is not enough to dissuade a prospective buyer from moving to Australia.
The cost of purchasing a property in Australia is lower than in New Zealand because Australia has an abundance of land and the population is also high. Of course there is always inflated prices in the cities due to higher demand. It is worth bearing in mind that the Australian population is 25 million, while New Zealand has only 5.1 million people, the land mass of New Zealand is 268,000 km square whilst Australia is 7.7 million km square. This makes it an attractive investment for first-time buyers. This low-cost policy also makes the country a more affordable option for those who want to invest in property.
There is no capital gains tax in New Zealand
If you are an investor looking to sell your property, the good news is that there is no capital gains tax in New Zealand. This tax will reduce the housing market’s potential growth and will cause investors to hold off on selling their properties. In addition, it will cause short-term supply shortages as investors will be hesitant to sell their properties when prices rise. Regardless of how you feel about the tax, the benefits of having no capital gains tax are well worth the trade-off.
The government is under increasing pressure to make some changes to curb the property market, and while there is no full-blown capital gains tax in New Zealand, the centre-right government has so far resisted. Even the Reserve Bank of New Zealand has criticized the government’s inaction in addressing the housing shortage. A recent survey of real estate agents found that the average Kiwi made a loss on their purchase, but relied on the resale profit to consider the investment a wise one.