Full Description

Property: Grand Mercure Resort & Hotel

Location: Nelson, South Island, New Zealand

Description: 1 bedroom Luxury Apartments

Title: Freehold strata title

Rental Yield: Fixed return 8% for first two years

Excellent Capital Growth: Projected at 19% per annum

Price: NZ$295,000 fully equipped and furnished (for GST registered investors) supported by independent valuation (copy available)

Special Discount Available: A special discount of $30,000 will be offered on the first 6 completed sales

Final release of 1 bedroom luxury suites in an award winning Resort

New Zealand is a stunningly beautiful country.  New Zealand's beneficial tax regime and low risk environment provides investors with an opportunity to balance their portfolio. At the 2008 Annual Awards ceremony of the Hospitality Association of New Zealand, Grand Mercure Resort won the award for Best Hotel in New Zealand, and the Supreme Gold Tourism Award for Excellence. In a country renowned as a tourist destination and with many fine hotels, these awards will further enhance the international reputation of this fine Resort.

A $30,000 Discount is offered on the first six sales to complete PLUS a guaranteed return of 8% per annum for two years.

Very Strong Growth in Tourism:

Nelson boasts New Zealand's highest sunshine hours at over 2,500 per year. Nelson's airport is New Zealand's 4th busiest with fast and frequent connections to all of New Zealand's main airports. Tourism is forecast to grow by 16.1% by 2011and revenue is expected to grow by over 40% over the same period. The Grand Mercure Resort and Hotel is well positioned to enjoy the benefit of this growth with visitors demanding more boutiques style properties of a higher quality.  Of extra comfort to investors is that 60% of tourists to this area are from New Zealand.

The Investment Opportunity:

Grand Mercure is the luxury division of Accor Hotels, one of the world's largest hotel managers.  The association with Grand Mercure gives the resort access to a worldwide booking system, bringing a significant flow of guests.

The Resort includes 100 one and two bedroom cottages, a 20 room hotel, award winning Mediterranean seafood restaurant, English pub, health and beauty spa, swimming pool, 5 conference rooms, hairdresser, bakery-deli and other retail outlets.  Grand Mercure Resort has been nominated by the New Zealand Hotel Association as a finalist for 2008 in the following categories. Best Hotel in New Zealand, Best New Hotel in New Zealand, Best Restaurant in New Zealand, and for the Outstanding Service Award.  As an astute investor, you will want to be associated with success.

The Resort has been designed to convey the ambiance of an ‘Old English Village', with windows and doors crafted of solid Elm and Black Popular, hand made bricks and baked terracotta roof tiles, copper guttering, and feature bridge beam timbers.  The cottage gardens give the village a timeless feel and insure that in addition to the look of the buildings improving with age, there will be very little requirement for ongoing maintenance.

Your cottage will be leased back and professionally managed by the Hotel Company to generate a return on the strength of a booming tourism market.

The return is guaranteed for the first 2 years at 8% of the purchase price.

Waterfront property is internationally proven to be a first-class capital growth investment and New Zealand is no exception.  New Zealand beachfront property has generated a strong average capital growth rate of approx.19% per annum for the last 21 years.

As a four-season resort, Nelson is regarded in New Zealand as one of the most desirable places to live or visit, reinforced by its incredible natural beauty, and its wealth of year-round activities - hiking, boating, golfing, fabulous sea and trout fishing, world-class food and wine. Nelson boasts the highest sunshine hours in New Zealand and enjoys a robust and diverse economy.  Kaiteriteri, Abel Tasman & Kahurangi National Parks and the magnificent Nelson Lakes are close by and the many Nelson and Marlborough wineries offer wine sampling and vineyard dining.

Why invest in New Zealand Property?

Generous Tax Incentives:

The tax structure in New Zealand is highly favourable for investors.  There are few places in the world that can offer such incentives and flexibility within the tax law, which makes investment not only easy, but profitable.  Investors who register for GST (VAT) pay no GST on their investment - saving 12.5% of the purchase price.  All prices here are quoted Net of GST.

Generous Depreciation Rates:

New Zealand has one of the highest residential depreciation rates in the world. 

Tax deductible depreciation allowances may be carried forward indefinitely and be offset against future taxable income. There is depreciation of 4% per year diminishing on Buildings, and approximately 22 % on building ancillaries and chattels.

Extensive Tax Deductible Expenses:

Using full absorption accounting, in New Zealand there are a multitude of tax-deductible expenses.

Current New Zealand Tax Laws include:

No Stamp duty

No capital gains tax

No wealth or death duty

No land tax

Deal Structure:

A refundable holding deposit of NZ$5,000 is payable to reserve your unit.  A 10% deposit is required when the contract becomes unconditional, with the balance due on settlement.  The deposit will be held in the Vendor's solicitors trust account and will be held in an interest bearing term deposit account.  Accrued interest will be credited to the investor on settlement.  Settlement will occur just after the freehold stratum title is issued.  Independent legal and accounting advice will be arranged locally.