Does New Zealand's have a 18Y Land Cycle? What its Boom & Bust History Tells Us About The Future

The Property Pitch That Stunned Asia..

Back in 2016 an advert was running on radio stations across Asia.

The script read something like this…

‘How would you like people in New Zealand to give you half their weekly wages?’ Each and every month. Yes, really….”

It continued...

‘Now if you happen to own an apartment in Auckland New Zealand, the high rent returns — other people’s money — around half a week’s pay for most people — could be paid to you as rent every week!’

‘There’s no stamp duty, no land tax, and within New Zealand, generally no capital gains tax either.’

The ad called Auckland’s housing market an ‘investor’s dream, and very affordable...!’ And finished off with:

‘If the idea of having people in New Zealand going to work for you, giving you hundreds of dollars a week, paying for your apartment is appealing…call XXXXXX…’ etc.

At the time, there were very few countries that offered such a rent-seeking paradise as New Zealand.

It had no land tax, no stamp duty, and was one of the only OECD countries with no capital gains tax either — (providing investors held their properties for at least two years.)

Australian investors could also deduct interest costs on New Zealand property from their taxable Australian income.

That radio ad perfectly captured the frenzy that reverberated through the property market through the 2000s, when the country was being marketed internationally as a rent-seeker’s paradise.

Want to read more?

Subscribe to landcycleinvestor.com to keep reading this exclusive post.

Subscribe Now