New Zealand-As a pacific “Kiwi” nation

New Zealand is located in the south-western Pacific Ocean consisting of numerous islands, big as well as small ones. European descendents form the majority of the population, with the indigenous Māori being the largest minority. In New Zealand, the Prime Minister, being the head, is elected democratically. New Zealand’s foreign policy has a resemblance with that of Australia, its neighbour country. New Zealand remains the only nation in the world where all the prestigious offices in the land have been taken over by a significant number of women. Wellington is the capital city while Auckland is considered to be the economic capital of New Zealand. Tasman Sea separates New Zealand with Australia. Major industries on the island are farming, forestry, wine, agriculture, orcharding and tourism.

Economic Scenario of New Zealand

New Zealand maintains a robust, prosperous, and developed economy with a high standard of living. The country relies heavily on trade, especially in agricultural products, as almost one third of the country’s output is exported. New Zealand’s unemployment rate is now dipping constantly and stands as the second lowest of the twenty-seven OECD nations. The current government has zeroed in on pursuing free-trade market and transforming it as a "knowledge economy”. Current economic measures for New Zealand contain a current account deficit of 9% of GDP, moderate low development of non-commodity exports and rapid growth of labour productivity. "Brain drains" has been an enigma for New Zealand since the 1970s as well educated youth have left permanently for others lucrative destinations.

Real Estate Market in New Zealand

The Real Estate market is on a roll and blazing with all its cylinders. The reasons are manifold as rental yields are high, acquisition costs are low, taxes are moderate, foreign ownership is not restricted and the exchange rate for most foreign investors is yielding dividends. Areas nearby Auckland are best bet now as compared to other similar developed cities across the New Zealand, as it is offering excellent value. With rising population growth rate and limited supply of land, it is easy to realize why many investors are bullish about Auckland. New Zealand’s isolation from world politics after post September 11 debacle, has tempted many to see it as a viable option to invest and to live there considering it as a safe heaven.

Process of making a real estate deal

Most projects necessitate an preliminary holding deposit once you have chosen  the desired  property that you intend to purchase.  This deposit ranges between NZ$1,000 & $5,000, and is usually held in a trust account. After receiving this sum, the vendor’s solicitor will bring forth a contract of sale. After drafting this contract, it is sent to the purchaser’s solicitor. Once this contract has been duly signed by the both parties, it is termed to be “unconditional”. Now, you have legally committed to the transaction.  You then need to pay 10% of the transaction price as a deposit. You have to organise a pre-settlement inspection as well as a New Zealand bank account alongwith a local property management agency to manage your investment.

Conclusion

New Zealand and in particular, Auckland is heading towards  significant economic growth, coupled with  healthy environment, funky lifestyle, and currently low property rates, relative to other major places in the region. Choose among the locations that should continue to see excellent capital returns with the ongoing real estate growth wave.

For further details, do visit these resources-

http://www.escapeartist.com/OREQ13/Real_Estate_In_New_Zealand.html
http://newzealandnow.info/nz/article/what-real-estate-companies-can-help-me-find-a-property
http://www.nzpi.co.nz/lawyers.html
http://homesell.co.nz/articles.php?task=viewdetails&table=articles&recs_a=174
http://www.shelteroffshore.com/index.php/property/more/time_to_buy_property_new_zealand/

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