We jumped at the opportunity to buy a vacation home in New Zealand
Mr & Mrs Toh, had been running a business serving the oil and gas industry for several decades. After years of hard work, they are taking a less active role in the business and they desire a vacation home where they could unwind and relax for a few months every year.
Mr & Mrs Toh look forward to a vacation home as they ease into their retirement years
The motivation for a suitable vacation home
Having heard of many Singaporeans buying vacation homes in popular destinations like Phuket, Bali, Malaysia, and Japan, the couple wanted to explore an option for themselves. While traveling overseas for holiday is something they have been doing thru the decades, buying a home in a foreign country is something new to them. They wanted a safe & peaceful environment, a country with beautiful and calming scenery, and offered the experience of four seasons. While they could simply book accommodations every time they traveled, this time they desired a permanent place to live in a foreign country where they could slow down, smell the roses and create refreshing moments into their retirement years. Best of all, they desire to come back to the same home every time they take their travel breaks.
Lake tekapo in New Zealand south island had made lasting impression to the couple’s NZ travels
New Zealand checked all the boxes
Looking through their several shortlisted options across different countries, they found New Zealand to be the closest fit to where they are looking for. Many years ago, they had traveled to the South Island of New Zealand and were mesmerized by the raw natural beauty, including the stunning night skies in Lake Tekapo and countless nature walks available in the country. Mr Toh who is an avid golfer, had played a few games while in New Zealand and enjoyed playing under the cooling weather and stunning backdrops. The couple's desire for a safe and peaceful environment, combined with New Zealand's reputation for natural beauty, makes it an ideal choice for their vacation home decision. They were not surprised to hear that New Zealand has been voted the top 3 most peaceful countries in the world for a long time. Furthermore, New Zealand offers a unique experience of four distinct seasons, something that is not common in tropical countries.New Zealand is also known for its friendly and welcoming locals, excellent healthcare system, and a high standard of living. The decision to purchase a vacation home in a foreign country is never an easy one, but for Mr & Mrs Toh, New Zealand checked all the boxes and offered everything they were looking for.
In our conversations, Mr & Mrs Toh were surprised to discover that Singaporeans are part of the only 2 nationalities in the world who are eligible to buy and own properties in New Zealand, at a time when the government has banned all other foreign buyers (Australians are the other group who are eligible). This further cement their decision, as Singaporean citizens, they have the unique unfair advantage of being able to invest in New Zealand's real estate market. During our conversations, they said:
"I think we are very lucky to be able to buy freehold property in New Zealand. It's a privilege that money alone cannot buy. It's a great investment opportunity for us, and we can also enjoy the natural beauty of New Zealand during our vacations. We felt we are at the right place at the right time"
Before the ban, New Zealand's real estate market is highly regarded by international investors, especially those seeking a second home or investment property. However, despite the government's strict regulations on foreign ownership, Singaporean citizens are fortunately exempted and Mr & Mrs Toh quickly jumped at the chance to buy their New Zealand property before any potential changes to its ownership policy.
Singaporeans are eligible to buy and own land & house in New Zealand despite a ban on all foreigners
Singaporean investors have a buyer’s advantage
On top of that, New Zealand is one of the few countries in the world that allows Singaporeans like them to invest and own freehold land & houses, it was definitely a wise choice on the investment side of perspective. Many of their Singaporean friends who had ventured into overseas property ended up buying apartments/flats or houses on leasehold land. Some had even gone on to use local nominees and companies' structure to buy land and house in countries that didn't allow foreign buyers, to which Mr & Mrs Toh find it highly uncomfortable. For Mr & Mrs Toh, being able to invest in New Zealand's real estate market and owning a freehold property was an opportunity they could not pass up on.
The couple eventually settled on a beautiful house in the south island of New Zealand and are looking forward to making their first trip there to spend their first vacation break in the new house. Mrs Toh's eyes lit up at the chance to have the time and space to grow & cultivate her envisioned outdoor garden, something she never get around to doing while building the business with Mr Toh here in Singapore. At the same time, they see the property as more than just a vacation home but also an investment, with huge potential for capital growth in the long run and as asset that can be handed down for many generations.
While this is their first time buying an overseas property, it was a pleasant experience for them as we walked the journey with the couple and guided them through the entire process. From identifying the right fit property to having their bank account and IRD number set up, it was a smooth and hassle free process. They plan to spend several months each year at their vacation home in New Zealand, enjoying the beautiful scenery, and slower pace of life, and mingling with the friendly locals. And with the option to rent out their property during the months when they are not there, it could potentially be a source of passive income to cover expenses while not over-straining the use of the house to keep it intact for their own use. This is something that they are still undecided but glad to have such an option available in a highly rentable area.
For Mr & Mrs Toh, investing in a vacation home in New Zealand is a new & exciting journey, something that they never thought of in their younger days. It is also a way to secure & preserve part of their wealth for their family's financial future. While they wished they had started when they were younger, they recognized that their conditions may not be favorable then. They find it fortunate to take the step of leap to own a vacation home in a peaceful country they had grown to love. They knew that their investment would appreciate over time and provide them with a place to escape the hustle and bustle of city life here. For now, they look forward to many happy years enjoying their vacation home.
Should I Invest abroad, stay put or wait?
If you are reading this, you are probably wondering what your next best steps in your investment journey could be.
Perhaps you desire a vacation home into your future? Will New Zealand market be a right fit for you and your family? Is this a good time to buy an overseas property, or should you wait and see? You do not have to wait till retirement age like the Tohs family to get started to buy a vacation home. Entering early when you can gives you the immense price advantage over several property cycle.
Well, everyone’s situation is different. There is no one size fits all advice. What has worked for someone, may not necessarily work for you.
At Brickzwealth New Zealand, our aim is to bring clarity to your investment decisions with extensive on the ground experience for the overseas market.
Whether you are a first time property investor or a seasoned buyer with a portfolio, we are here to provide an honest and objective view to your investment journey.
We can help you by:
1) Providing Strategic property advice that best fit the outcome you desire
2) Identify & spot investment opportunities that align with your goals
Kick-start a conversation with us today. Invest differently. Inspire your future.
Ryan Quah
Founder
Brickzwealth New Zealand
