THE VERY WEALTHY ALWAYS INVEST IN
PROPERTY & LAND
FINANCIAL EXPERTISE TO FAST TRACK
Why create the Private Property Club?
As the principal of Propellor Property Investments, Nikki found that as her successful business grew she could not spend time with all her clients; to address this she brought on board a number of highly experienced senior consultants. They now work with thousands of Kiwis, successfully advising on and recommending investment property from around New Zealand.
However, she began to be contacted by people wanting more specialised service – to have Nikki as their mentor and property strategist. These were clients who were serious about building up a larger portfolio to achieve returns of in excess of $100,000 per annum.
So she decided to form a private club of these high net worth individuals so she could work with them on a one-on-one basis to help them achieve the same success she has enjoyed as one of New Zealand’s foremost residential property investors.
As she wishes to offer only the best service, this private club is limited to a small number of investors every year.
NEW ZEALAND PROPERTY INVESTORS
Like any industry, be it sport, music or business, successful people appreciate they cannot be experts in every area in their life. They realise the importance of a mentor/advisor to fasttrack their goals and accelerate their results.
It is easy to fail in property so it is vital that anyone making this type of investment understands the pitfalls and has support throughout the life of these investments.
- Private one-on-one consultations with Nikki Connors
- Prepared property strategy report
- Allocated ongoing property liaison
- Quarterly updates and reviews
- Ongoing access to unique residential property opportunities
- Full due diligence reports on all property presented
- Full cash flow projections on these properties
Coordinating and managing:
- Finance acquisition (mortgages)
- Independent accountancy advice
- Full property management
- Independent legal representation
WHY INVEST IN NEW ZEALAND RESIDENTIAL PROPERTY?
New Zealand is unique in that it does not have stamp duty, death duties or capital gains tax if you hold the investment for over five years.
It is also a financially and politically stable country. These are a huge advantages for any overseas investor.
However, due to New Zealand laws, only certain properties are available for purchase by overseas investors. I source these for clients.
· Covid-19 Recovery
New Zealand has recovered faster than most first world countries. Our economy is already in recovery mode and there is a positivity from every sector
· Record low interest rates
Investors are actively looking for returns better than what they can get on bank term deposits, of which they have too many having saved up extra money during lockdown.
· Migration not collapsing
Not only was there a net inward migration boom of Kiwis just ahead of lockdown, our compatriots continue to flood back in. This raises the question, with 33,000 extra people beyond estimates in the country in April, and the net 2020 flow likely to be well above zero, could Covid-19 actually boost net flows for calendar 2020 above what they would otherwise have been?
· Falling construction
Building businesses are currently busy finishing jobs. But with banks pulling back from funding property development the rate of growth in housing supply will slow over the next couple of years.
· High rental demand
In the major centres of New Zealand we are continuing to see a huge demand for rental properties. Nearly 50% of New Zealanders rent and rental increases in some areas have increased by over 8% this year
· Low debt growth
We went into this crisis with low growth in risky bank mortgage lending. LVRs were in place from 2013, and banks have been applying high test interest rates for calculating debt servicing ability.
· No capital gains tax
If an investor holds their properties for 5 years or more there is no tax on the profit
· High Nett returns
Investors could receive a higher nett return on their investment and as property in New Zealand traditionally doubles every 10 years, the capital gain will be very attractive
However, due to New Zealand laws, only certain types of properties are available for purchase by overseas investors. We source these for our overseas clients.
PROPERTY V CASH
$100,000 deposit on a $500,000 property Interest rate 2.5%
Potential Capital Gain
Average Return on Investment
(incl Potential Capital Gain)
TOTAL GROSS YIELD:
50% pa over 10 years
$100,000 At BNZ interest current rate of 1.4%
Interest received over 10 years
Average return on Investment
Cash will depreciate over time