Wanaka New Zealand for Property & Real Estate Investment

Wanaka is a place of great natural beauty and attracts thousands of visitors through both the summer and winter months. Wanaka is receiving increasing exposure, not only because of the accessibility of the ski fields - Treble Cone, Cardrona and Waiorau Snow Farm but high profile events such as the Festival of Colour and Warbirds.

Accessibility from the Queenstown international airport is via the scenic Crown Range highway, less than a 55 minute drive. There is also a daily Air New Zealand air service connecting Christchurch with the Wanaka airport and this has contributed to the development of the tourism market.

Lake Wanaka lies at the heart of the Southern Lakes, New Zealand's wonderland, and southern most wine region, in the lower South Island. Wanaka township is situated in a dramatic glacier-carved basin on the shores of the lake and is the gateway to the Mt Aspiring National Park World Heritage area.

If you are consideringpurchasing real estate in the Wanaka region for investment, or if you are an overseas purchaser, then this article is for you.

Investment Overview

New Zealands property prices are relatively cheaper than its major trading partners and most OECD countries. National real estate industry sales statistics indicate that prices are now 10.2% higher than a year ago and the market remains firm. Offshore investment is in its infancy however the level of interest in increasing as more and more people hear about the fantastic growth and income opportunities.

Wanaka Residential

The Queenstown-Lakes region population is one of the fastest growing in New Zealand. 2006 census counts have recorded an increase of some 35% from the 2001 cencus. Median property prices in Wanaka currently equate to $544,000 for houses and $250,000 for sections.Since mid 2006 the number of property transactions has increased with it now difficult to find a residential section in Wanaka for under $220,000 and a house below $400,000.

Entry level into the market makes it difficult for first homebuyers and this has lead to increased demand and strong growth in values in Albert Town, Lake Hawea, Hawea Flat and Luggate. The recent release of Timsfield Development sections in Lake Hawea have been a popular low priced option. .

Rural / Rural Residential Property

Prime land, in particular those sites close to Wanaka or with excellent mountain views and or water frontage, remains keenly sought after. Interest in larger farming blocks is high, particularly for high country runs with frontage to National Parks, rivers or lakes. Off-shore buyers have been particularly active in this sector of the market, properties being purchased principally for lifestyle, recreation or development purposes.

Commercial Property

A shortage of office and retail space is impacting on rents, which have increased steadily over recent times. Rentals in Wanaka are still well below those for equivalent space in Queenstown indicating there may be room for more growth in the market.

Tourism Property

The accommodation sector and associated businesses have enjoyed a buoyant market over the past 4-5 years, principally due to growth in the number of visitors to the area. There is confidence in the market which is evident by the new investment in infrastructure including additional visitor accommodation, servicing industries such as bars and restaurants along with growth in activities such as the new Basecamp Wanaka complex. Information from the Tourism Research Council NZ indicates that in the period 2004 – 2011 total visitor nights to the Wanaka area will increase from 440,000 to 572,000, which represents a rise of 30.1%, well in excess of the national average of 21.1%.

Overseas Investors

New Zealand is an investment friendly country with no stamp duty, mortgage stamp duty, land tax, property purchase tax, nor capital gains tax. Some countries (eg. Australia), require property buyers to pay stamp duty tax, up to 3-4% of the purchase price! Buying from overseas is simpler than it sounds. The New Zealand Government has no major barriers for overseas property investors. The Government encourages foreign investment.

What type of land acquisition may require Overseas Investment Consent?

Area: Where the land area exceeds 5 ha in area.
Foreshore: Where the land includes foreshore/seabed or adjoins foreshore/seabed.
Lakes: Where the land exceeds 0.4 ha in area and adjoins or includes the bed of a lake.
Reserves: Where the land exceeds 0.4 ha and includes or adjoins a reserve, park or conservation land.
Islands: Any land on most off-shore island.
Historic Places: Where the land exceeds 0.4 ha and includes or adjoins most historic or heritage areas.

Phil Wilson has already established himself as a successful Real Estate Salesperson in Wanaka, Luggate and Hawea. Phil works under the umbrella of Professionals Wanaka Wide Realty Ltd MREINZ. Find out more about on Phil's personal website.