It’s a question gaining interest as property investors look for opportunities outside of Australia’s housing market.
With the Federal Budget’s negative gearing and capital gains tax changes (kicking in from 1 July 2027) already making some investors rethink Australian residential property, a growing number are casting their eyes across the Tasman.
Why New Zealand?
Ray White Group economist Atom Go Tian argues the case for Australians buying in New Zealand is the strongest it’s been in years.
His reasoning? New Zealand’s national median house price is still around 16–18 per cent below its November 2021 peak, at roughly $635,000 in Australian dollars. On top of that, the exchange rate is working in Australians’ favour. One Australian dollar now buys about 1.22 New Zealand dollars – close to a decade high – so your money simply goes further over there.
Then there’s the tax picture, which is the real eye-opener.
As Atom Go Tian points out, New Zealand has no broad capital gains tax, no stamp duty and no land tax.
What’s more, interest deductibility was restored in April 2025, and Australians are largely exempt from New Zealand’s foreign-buyer approval rules.
Put simply, many of the tax hurdles Australian property investors are used to simply don’t exist in New Zealand.
Be smart and do your homework
But – and there’s always a but – Ray White is upfront about the catches.
Foreign-buyer activity is thin, net migration is still flowing from New Zealand to Australia (which doesn’t exactly scream booming local demand), and there’s a real chance New Zealand will introduce a capital gains tax after its 2026 election. So the very advantage that makes it attractive today could narrow down the track.
The butterfly effect
It’s a fascinating example of how a tax change here can ripple out and redirect investor thinking in ways the policy designers never intended.
The federal budget’s housing measures are designed to steer investor demand away from established homes and into new supply, easing pressure on prices while improving housing availability over time. But in practice, policy rarely moves in straight lines. Instead, we may be seeing some investors reassess their position in the Australian residential market altogether and look sideways to opportunities in NZ where the settings are very different.
For now, that is.
As always, this isn’t advice to rush off and buy a bach in Queenstown – it’s a reminder to understand exactly what’s changed, what’s driving those changes, and what the catch is, before you do anything.
But t’s an interesting question and perhaps equally so that we are asking it.
