Low-Cost Study in New Zealand through Investing in New Zealand’s Property
New Zealand’s quality of education and study environment continues to rank amongst the top in the world. Parents have increasingly sought to send their children overseas to study in New Zealand. Although the cost of studying in New Zealand is relatively low in comparison to many developed countries, it is still necessary to plan the expenditure carefully from tuition to daily expenses for an international student studying abroad.
In New Zealand, the annual tuition fees for international students on an average are 60,000 RMB per year for a high school student, and 15-18 million RMB for undergraduate and master students. In addition to tuition fees, the average daily expenses per student cost about 60,000 to 70,000 RMB per person per year. Parents need to bear the risk of fluctuating exchange rates and various additional expenses when remitting a large number of fees to New Zealand. Resultingly, the expenses for a child to study abroad are quite big for parents.
How can we make better use of this fund instead of using it in vain? IEF International Education Fund has brought you a better plan – invest in New Zealand real estate!
Fund your Education through Property Investment: Making Money While Studying!
Let’s examine the following example: Student A came to New Zealand to study in high school, and his family bought a 35 m2 high-end fine fitment small apartment in a prime location in central Auckland. The rental income of apartments is about 500 NZD (about 2250 RMB) per week, and the annual rental income is about 26,000 NZD (about 120,000 RMB). At present, the total price of a high-end fine fitment small apartment in Auckland CBD is 800,000 to 900,000 NZD (RMB 4 to 4.5 million). From this rough calculation, the annual return rate of investment in rental income is about 6%. After deducting the child’s tuition for one year in Auckland, there is still a surplus, which could be used to cover the cost of the child’s various extracurricular activities and courses. (See below)
| Level of Study | Tuition Fee（NZD/Year） | Cost of Living（NZD/Year） | Annual Rent Income（Excluding Operational Cost, NZD/Year） |
| School Level 10 | 15,000 | 15,000 | 26,000 |
| School Level 11 | 15,000 | 15,000 | 26,000 |
| School Level 12 | 15,000 | 15,000 | 26,000 |
| School Level 13 | 15,000 | 15,000 | 26,000 |
| Year 1 in University | 36,000 | 15,000 | 26,000 |
| Year 2 in University | 36,000 | 15,000 | 26,000 |
| Year 3 in University (graduation year) | 36,000 | 15,000 | 26,000 |
| Total | 168,000 | 105,000 | 182,000 |
Good Options Under the Purchase Restriction Order
However, you may be wondering, what the options are under the purchase restriction order after the New Zealand Overseas Investment Law Amendment was formally implemented.
Under the purchase restriction order, overseas buyers can purchase large apartment development projects that have been granted an “Exemption Certificate” by the Overseas Investment Office (OIO). The exemption certificate allows developers to sell 60% of apartment units to overseas people. Overseas buyers do not need to be approved by the Overseas Investment Office (OIO) when purchasing Apartment projects. However, overseas people cannot purchase such apartments for self-occupation.
This makes for a great investment! Additionally, with the large housing demand in New Zealand, the rental housing market is in short supply. The house is easy to rent, the rent income is stable, and the rent increases annually. Economists estimate that New Zealand has a housing shortage of 100,000 units, with Auckland being particularly severe.
This new model of funding study through property investment completely breaks the underlying concept of parents’ investment in studying abroad, and parents also gradually realize that investment can do two things with one stone. Currently, more and more parents are considering buying real estate while their children are studying abroad. Through the right choices and reasonable investment, it is possible to achieve a low-cost study abroad. We can help you with that!
If you are interested in this project, please feel free to contact us!