New Zealand's regulatory structure is desinged to help investors in new residential properties prosper. You must understand and follow the rules below:

From all corners of the globe, New Zealand is exemplified as a country of unsurpassed natural beauty with a clean, green, undisturbed environment.  there are few countries that can compare in geographical diversity: ancient glaciers, fjord, rugged mountains, picturesque  farmland, plains, subtropical, forest, volcanoes and miles of coastline with gorgeous sandy beaches. It's hardly surprising that New Zealand is a favoured destination for tourists,immigrants and film producers!
But New Zealand is more than just pretty postcards. It also provides a safe economic and political environment, and a rich social and cultural framework. Admittedly isolated, it is precisely because of isolation that New Zealand is increasingly regarded as a safe heaven for people needing a peaceful yet productive lifestyle. The combination of natural beauty, geographic isolation, economic growth and political support means that New Zealand is an attractive destination for investors.

Overseas  investment
¡°We have a lot to offer the foreign direct investor: a clean bureaucracy  and  legal  establishment, an uncluttered tax system  with no capital gains tax, a well-educated workforce, a green image, competitive wage rates by the standard of  the developed  world, the security from litigation that  ACC provides, lower power  costs,  a stable  political envi-ronment and much  much more.¡± (Dr Michael Cullen, Minister of  Finance 22.02.01)
New Zealand's government is committed to economic growth and encourages investment in both
property and business with limited restriction of ownership for overseas  inwestors 

Population dynamics
In June 2002, New Zealand had an outflow of 22,300 citizens with an inflow of 50,400 noncitizens. With such a high influx of migrants to New Zealand's shores, there is an ever-increasing demand for housing .Many migrants are either younger and looking for property close to educational facilities or older with high capital wealth to invest. Potential migrants who invest NZ$1M into a bank , business or investment property get points towards residency . Foreign investors may also obtain access to credit up to 80 per cent of 2003, the averagecost of a home was only NZ$203,000 which is exceptionally good value for the buyer with USD,Euro,AUD or Pound Sterling.
Expatriot Kiwis are also investing their hard-earned offshoer currency back into their home territory . They generally have large disposable incomes and/or substantial equity in property that they can borrow against for New Zealand property purchases.

Exceptional rental yields
A positive rental yield is important for property nivestors to cover the costs of funding a property plus rates, management,insurance and other costs. Through the Investors Forum it is possible To have gross rental returns, including tax savings, of up to 15 per cent of the investment. Maintaining a positive rental yield depends on the principle of supply and demand. There is a current shortage of properties in high-growth areas throughout New Zealand.
The number of people renting in New Zealand has increased from 22 per cent in 1985 to 34 per cent in 2002¡ªa result of changing lifestyle needs .the aging
population often prefer to sell house for rent, or buy a hassle-free lifestyle property. Around 2,0000 new home-based businesses  commence each year, requiring a different style or design of property. Generation X-ers, the second largest second largest section of our population, are now waiting until their thirties to marry. Surveys have shown that most generation X-ers prefer to rent rather than buy prior to marriage. As a result the high demand for rental property throughout New Zealand enhances landdords' security of occupancy.

Generous tax incentives
The tax sturcture in New Zealand is highly favourable for investors . There are few places in the world that can offer such incentives and flexibility within tax law which makes investment not only easy ,but profitable.
No capital gains tax: unlike Australia or the UK,New Zealand has no capital gains tax .Wealth, profit or estate equity created through personal or business investment is not taxed.
Not land tax: the government does not tax owners on the value of their land.
No stamp duty: in 1999 the Stamp Duty Abolition Act amended the stamp and Cheque Duties Act 1971 , stating that instruments executed after 20 May 1999 no longer sttract conveyance duty or lease duty,and do not need to be submitted to the department for stamping.
No finantial transfer taxes: unlike Australia, the New Zealand government doesn't tax the transfer of funds through the banking system.
No wealth or death duty: unlike many other countries, New Zealand has no indirect taxes on wealth. Inheritances on death can be passed to beneficiaries without estate duties applying.
Personal tax rate: New Zealand has low personal tax rates compared to the Western world.
Generous deprecination rates: New Zealand has one of the highest residential depreciation rates in the world. Tax deductible depreciation allowances may be carried forward indefinitely and be offset against future taxable income.
LAQC: Loss Attributing Qualifying companies are special tax vehicel which help to minimise risk, and allow sole traders and partnerships to own the investments in a limited liability company. LAQCs have the ability to transfer tax losses to shareholders therefore tranferring the tax benefits and incentives provided by depreciation to shareholders.

Outstanding capital growth and the property cycle
New Zealand has had a sustained residential property growth of 10 per cent per year compounding for the last 50 years. History has shown that there is a cycle to the macroeconomy that occurs approximately every seven years. Although the media will headline a property price ¡®crash'or ¡®boom', the reality is that through it all, property prices commonly rise and fall on a seven-year cycle however, consistent 10 per cent growth has been achieved each year over the long term.