If you’re starting to look at different New Zealand investment options, you’ll notice that they are seemingly abundant, yet their value is hard to evaluate. Navigating the world of property investment in New Zealand can be daunting, and costly, if you choose the wrong partner.
Deciding where to invest is never easy. Read on for an overview of the types of property investments there are in New Zealand, and how to spot the good, from the bad.
New Zealand property investment options
Traditionally, purchasing property has been the go-to investment vehicle, however people also look for other investment avenues that don’t come with the hassles of property maintenance, tenant management, or the large upfront costs usually associated with buying property.
Other investment opportunities include:
Peer-to-peer property investment
Another way to invest in the New Zealand market is through peer-to-peer investments.
Peer-to-peer property investment offers a way to gain exposure to real estate without the need to purchase an entire property. Instead, investors register with a peer-to-peer lender, like Southern Cross Partners, which then pools investor funds to finance individual property loans. Investors earn income through interest paid by the borrower.
Deciding what investment avenue to take is the first step. Next, you need to decide what company you’ll trust with your hard-earned money.
How to decide where to invest?
There is a long list of property investment firms operating in New Zealand; however they are not all created equal. The type of investment, the health of the investment opportunity, and the health of the company can vary significantly from firm to firm.
Read on for a breakdown of what you should be considering when deciding who is the right fit for you and your investment goals.
Onshore vs offshore
Property investment firms can choose to invest your money in the New Zealand market or look to overseas options, or a combination of the two.
Below is a simple explanation of the pros and cons of investing in a company that solely invests in New Zealand, and those who invest offshore.
| Pros | Cons | |
| Home market investment firm |
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| Cross-border investment firm |
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Choose a regulated provider
Financial investment providers in New Zealand are overseen by the Financial Markets Authority (FMA). Licensed investment providers, like fund managers and peer-to-peer lending platforms, must follow strict rules set by the FMA to keep investors safe from dodgy practices.
A quick search on the financial service providers registry provides a comprehensive list of licensed providers. Always read the product disclosure statement, or get a financial advisor to read it, so you fully understand the product being offered.
If an offer seems too good to be true, it probably is.
Check the financial health of the provider
If you want to find out about the financial health of a provider, you can look at their publicly issued financial statements. Large New Zealand providers are required to prepare, audit, and publish their financial statements, which can be accessed via the Companies Office website. This provides a good vantage point to assess stability and long-term viability of the company.
Smaller New Zealand companies aren't required to disclose or audit their accounts, so, if you can't see any financial statements online then the tried-and-true phone call should do the trick.
Shop around for the best fit for your investments
Reaching out for investment help is always a smart idea. Engage with different providers. The ability to speak or meet with a real person reflects a company’s accessibility and transparency. One conversation with an investment team member can provide valuable insights and help you gauge the company’s business practices and values.
Don’t hesitate to ask questions. Inquire about their history and performance, as well as if there have been any instances of investor losses, their investment selection process, fees, and whether they have a physical office where you can meet someone in person.
Why Southern Cross Partners?
At Southern Cross Partners, our door is always open. We’ve been partnering with Kiwi investors for more than 28 years, and while past performance doesn’t guarantee future results, we are proud of our flawless record looking after investors funds.
As New Zealand’s largest property-backed peer-to-peer lender, our conservative approach to lending has consistently delivered regular, enhanced investment returns.
All our investments are secured by first mortgages. Investment rates start from 6.75%* p.a., with a current minimum investment of $10,000*.
Property investment can be a great way to grow your wealth, if it’s done properly. Whether it’s bricks and mortar, peer-to-peer lending, or real estate funds, there’s a path to suit every investor. Choosing a company, you trust to grow your money wisely is key to the success of your investments. Ask questions, do your homework, and look for transparency and results.
After all, it’s your future, you should feel good about where it’s going.