Property investment market gains momentum: NZ Mortgages
Christchurch’s property market is seeing renewed interest from investors following recent changes to the bright-line test.
As of 1 July, properties held for two years or more, instead of the previous five or 10 years, are now exempt from capital gains tax. This reduced timeframe incentivises investors to re-enter the market, with Christchurch’s affordable pricing and high demand making it particularly attractive.
The NZ Mortgages team has witnessed a good uptick in property investment activity in Christchurch, with our office seeing an 80% increase in investment applications over the past two months. While mortgage interest rates have been trending lower, the new bright-line rules make property a more appealing choice, positioning it as a path toward financial growth.
During the New Zealand Property Investors Federation conference at Te Pae, numerous attendees expressed confidence in the current market and highlighted Christchurch’s unique benefits for investors. With the city’s steady growth and urban development, property investors are finding good yields on rental properties and potential for future capital gains. However, as more investors join the market, first home buyers are finding themselves in close competition for affordable properties under the $750,000 mark. Investors and first home buyers are seeing the appeal, so if you are a first home buyer or know someone who is, make sure they are making moves into the market sooner rather than later.
As interest rates gradually decrease, strategic property investment in Christchurch offers a way to leverage the market’s current affordability, adding value to portfolios. The city’s combination of low entry points and promising returns continues to drive demand, and the recent regulatory changes solidify its position as a prime spot for both seasoned and new investors looking to gain footing in New Zealand’s evolving property market.
For more personalised advice, speak to your adviser or any member of our team on 0800 100 300.
