New Zealand Rental Property Investing

Part of the demand has been due to urban population growth, particularly in Auckland, which is growing by 49 people a day, but also by the "coastal land grab" which has seen areas like Nelson/Blenheim, Queenstown and Northland achieve massive capital gains in the last five years. Many areas like Mt. Maunganui, the Coromandel and Paihia have also seen strong growth, more by kiwis looking for holiday homes than purely as investments.

A key point to remember is to use your home as equity to purchase rental property, rather than paying off your mortgage, then "trading up" to something better and renting out current your home. This allows you to claim maximum tax deductions on your rental property. This of course means you will have greater debt, but it is that debt that allows "gearing" - talk to your accountant, lawyer or financial advisor - if you don't have an accountant we can recommend someone to you.

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