New Zealand vs. United States

4 Replies

Hello BP!

I am new to the site and a hopeful soon to be investor! I am specifically interested in small, multifamily buy & hold properties. 

My question is whether anyone would be able to shine some light on the similarities and differences investing in real estate in NZ and the US? I want to start investing soon but I also really want to move to NZ so am trying to determine if I could combine those two or if I should wait to move until I have enough units and systems set up to have solid passive income through cashflow.

Thank you in advance! I'm stoked to be a part of this community!

There is very little in common between the 2 countries @Brenden Mitchum . NZ is highly regulated, very expensive, and money is hard to come by. We have no REO industry, no private note industry, houses generally sell for what they are worth. So build a portfolio in the USA as it's so, so easy by comparison.

The USA is like the wild west to an NZ investor, that's why we come here. it's just so easy to get going in the USA. NZ is really difficult in comparison.

Just to give you one abstract example. If an NZ realtor sells a house for less than it's retail value, he can be sued and fined, lose his license, even go to jail!!

Originally posted by @Dean Letfus :


Just to give you one abstract example. If an NZ realtor sells a house for less than it's retail value, he can be sued and fined, lose his license, even go to jail!!

 How do they determine what the retail value is? Seems challenging since there are so many variables and the retail value is what someone is willing to pay for it. Do you they need to leave it on the market for a certain number of days?

Thank you Dean! That information is incredibly helpful. I am certainly leaning more towards building my wealth and passive income here first before moving to NZ. 

@Dan Deppen , our values are easier to ascertain being a small nation and we don't tend to have the variation in suburbs that America has. Good areas are generally all good and bad areas are generally the same. So as our overall housing pool is so small, a valuer can look at all recent sales of similar sized homes and land in a 1 to sometimes up to 3 mile radius and establish pretty accurately what a house should sell for.  Of course there are variations in build quality and amenities but these move the value much less than in the USA.  So it takes about 10 minutes to pick pretty much any street and know this is a $500,000 to $550,0000 street.
On a property worth say $750,000 which is a cheap house in Auckland these days you might get a variation of 50K in valuations but that would be it.

The industry is also regulated so the banks only use their own panel valuers and any valuer who is seen to be inflating or deflating values to advantage his client would end up in legal trouble pretty quickly.