Anyone would find a year a pretty short time to purchase 11 properties. It’s not the case with Lily Adrianne, a 27-year-old model who bought 11 more properties in a year, bringing her total properties to 12. This wasn’t always the case. Prior to her career in modeling, Lily was broke with an abusive boyfriend. It wasn’t until she had the courage to pursue her dream of being a model that she was able to break free. She now uses the same tenacity in property investment.
Her first overseas investment was in Australia, with the rest of the houses located around New Zealand. She’s on an insatiable quest to purchase property in the country, with Auckland becoming a hotbed for many foreign investors planning to purchase properties. The market has boomed under the National Party government, with foreign investors making up 37% of the buyers.
Lily explains reasons Auckland and New Zealand in general, is a great place to purchase.
Tax Havens for Property Investors
Prior to the foreign investors’ property ban, New Zealand had a favorable tax structure that attracted many foreign investors in the market. The tax haven exempted investors from capital gains tax after selling one or more properties at a profit. This meant if tax authorities believed that you were trading in properties, the profits earned were taxed as part of your income. It was this tax structure that saw many investors build wealth by trading in the property market.
High Rental Yields
Generally, New Zealand has experienced steady growth in house prices over the last two decades. From 2001-2007 the prices increased by 114% and a much higher increase between 2012-2017 due to strong economic growth. This explains the high cost of housing in the country, especially in Auckland and Wellington. Auckland, where Lily has bought most of the rental properties, touts a rental yield of 6.09-7.18% on apartments ranking second after Wellington. This means the average house price is more than NZ $500 a week, accounting for 32% of a household’s income. With such a high yield, investors such as Lily are motivated to purchase even more rental properties.
The Popularity of the City
Apart from its high rental yield, Auckland is the most popular city in New Zealand. According to a 2016 survey, a third of the country’s population (1.4 million) now lives in Auckland. Citizens believe the city has more jobs than any other city in the country, and moving to this city is critical to growing their careers.
Prime Location of the City
The city’s location also prompts many investors to purchase property in the area. Auckland is located on a harbor called Waitemata, usually bordered by beautiful beaches on both sides. The climate is also very friendly here as it has 2003 hours of sunshine every year.
High Immigration Rate
New Zealand is one of the countries with the highest immigration rate. In 2019, stats showed it has an annual net migration of 55,700 compared to 49,600 in 20180. This means there’s an ever-growing need for homes in the country.
Lily has come a long way over the last few years from being broke, to becoming a successful model, and then a successful property investor.
She sees New Zealand as a prime opportunity for property investment and house flipping because of the high rental yields, ideal location, and overall high immigration rate. Lily is excited to pursue new opportunities and reach new heights.