CEO's update: the latest in the rural market
There was a rural cell meeting in Cromwell last week and it proved highly illuminating with several key trends and facts becoming evident as we discussed the state of the rural market in Otago and New Zealand.
- 80 per cent of the rural market is lifestyle property
Properties with a small amount of land, offering the countrified lifestyle without huge running costs, are both more popular and on the market more frequently than full size farms or holdings.
You must be GST-registered if you’re generating $60,000+
If you’re making considerable income from your property and you’re not registered for GST, you could be hit with a GST component when you come to sell. This is similarly the case for Airbnb and other holiday rental properties.
On top of this, some rural property may have historic GST status even if it’s not currently being run as a farm. The lesson? Beware of GST when listing a property for sale.
- Additional conditions if purchasing from overseas
Investment from abroad requires overseas investment approval if a non-New Zealand resident buys:
- land greater than five hectares
- land that exceeds 4,000m² adjoining a reserve or conservation area, or
- land that exceeds 2,000m² adjoining foreshore
- Harcourts leads the way in rural
Another fact that came to light was that Harcourts New Zealand has double the number of lifestyle listings than our nearest competitor. Our dominance in this area is remarkable and I think that’s fuelled by our consultants’ dedication to rural and lifestyle property and the local people.
For more, take a look at Harcourts New Zealand’s latest lifestyle and rural news.