New Zealand is one of the most appealing places in the world to start or invest in a business. In the recent HSBC Expat Explorer Survey, New Zealand was rated first in the world for entrepreneurship. In addition, in a World Bank Doing Business survey from June 2017, New Zealand was ranked first in the world as the easiest place to establish, own and maintain a business. New Zealand has a significant lack of restrictions for new business owners, which is one reason why it’s such a favourable environment for business professionals.
Here are four other reasons why start-ups, experienced business individuals and eager venture capitalists should consider investing in a New Zealand business.
Plenty of Investment Opportunities
Both traditional business sectors and new, innovative companies present plenty of opportunities for interested investors. Fields such as information and communication technology, tourism, film and special effects production, biotechnology, tourism and agricultural research are just a few areas in which New Zealand is doing particularly well. Regions such as the Bay of Plenty are rich with investment opportunities in several of these industries. The country’s abundance of natural resources, including fertile soil, excellent climate for growing and advanced agricultural technology make it an excellent place for pastoral, forestry and horticultural businesses.
Stable and Secure Economy
New Zealand’s economy is considered to be stable and secure. The country has maintained low inflation for 20+ years thanks to independent monetary policies and a focus on price stability. New Zealand benefits from an open economy that works well on free market principles. The government also provides a series of convenient online portals, making it simple for individuals to establish their business of choice.
Housing Market Out of Reach
Prime Minister Jacinda Ardern recently instituted a ban on foreign investors purchasing real estate properties and existing homes because their purchases are driving up the cost of houses, effectively outbidding young Kiwis attempting to buy their first home. According to Bloomberg, Auckland is ranked fourth in the world on a list of least affordable housing markets. The average home value in this region is more than $1 million. Only a quarter of New Zealand adults own their own home, compared to half in 1991.
While the new law may make it easier for Kiwis to scoop up real estate investments, it may be quite some time before prices come back down to reasonable levels. Therefore, it may make more sense for individuals to invest in a thriving business instead of real estate.
Securing Your Future
Investing in a business is a great way to secure your future for retirement. The returns on your investment can contribute towards a safety net to keep your income steady in the future. Individuals considering a secure investment should seek the assistance of a professional, whether a business broker or financial professional, to help them make the right decisions when it comes to handling their money.
With New Zealand’s economic health, thriving industries and plenty of investment opportunity, it’s clear that investing in a New Zealand business is a wise choice.
For Further Information, please contact your nearest LINK Business Broking office
