Anglands New Zealand Property Services
Welcome to the first issue of what will be a regular newsletter to our New Zealand and overseas clients. The newsletters will highlight important economic and property related information which we believe will be of interest and value to you.
We trust you will find the newsletters both informative and enlightening. It is our intention to present you with the best property and equity partnership investment opportunities that New Zealand has to offer.
We look forward to assisting you with your purchase of your perfect property.
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The Property Buyer's Market
Buying a high quality property in today's market has brought on a new meaning to investing in land. With the value in many other investment options fluctuating drastically from week to week, property is looking more and more like a safe harbour for money. Looming inflation combined with excellent value opportunities have convinced many buyers to invest in a recreational property. In addition to value, recent buyers have pointed to the fact that recreational properties are a finite commodity, there are fewer every year and they can be enjoyed during ownership.
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Consistent Long Term Investment
 Property, especially commodity-based land such as farms, stations (ranches) and timberland have been a very stable and consistent long term investment for decades. However, the days of buying property and watching your equity grow through appreciation are down on the list for reasons to invest. A significant return is still possible if property is purchased for the right price together with a long term hold strategy in mind. Of course, having an investment with 10lb trout in the rivers or a high quality red stag herd in the mountains can provide a different type of dividend.
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Today's Real Estate Market
In today's market, the properties getting the most attention still have those "WOW" or "X" factors but the property also needs to have some economic grunt behind it. A few attractive reasons are depreciable assets, income producing crops or the ability to increase the productivity and/or ability to increase the value in the land itself with stream and wetland restoration, forestry and/or native bush regeneration, including carbon farming, coming to mind. Water rights or the ability to increase the potential for wells and/or store water can be a major benefit as well. A property that has the ability to pay a return on investment in some fashion (even the typical 2-3% agricultural return) is a motivating factor in many cases until normal rates of appreciation return.
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Long Term Incentives and Options
It is important to use all possible financial incentives to help offset the purchase price of these valuable properties. The recent introduction of the Emissions Trading Scheme and other Government restoration programmes as well as owning substantial depreciating assets on the ground can add both substantial cashflow and tax minimisation benefits. Many property owners are purchasing these properties with a long term hold focus and with the intention of taking advantage of all available incentives and options, along with increasing production, recreation and tourism possibilities, including hunting and fishing, and any other revenue streams that the property may not have seen in the past such as carbon farming. In summary today's market has changed and in finding that perfect property for a price that makes sense, you need to study the market and be ready when the opportunity presents itself. At Ronald W. Angland & Son we have our finger on the pulse of the property market, in particular the recreational property market in the South Island of New Zealand, and can help lead you in a direction that will get you more for less in the long term.
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