F.A.Q.
RealtiesNZ is an online platform allowing anyone access to property investment from just $100.
Fractionalisation is splitting a property into small parcels of shares through a limited liability company.
Fractionalisation can make the price of real estate ownership comparable to a company’s share prices.
- We carefully select properties based on their investment potential and ability to deliver returns through rental income and capital appreciation.
- RealtiesNZ prepare these properties for listing on the platform ready for you to invest in.
- A holding company (SeriesNo Ltd) is created to hold the title for the shareholders.
- You then Create an account to become an approved investor. Watch Video
- Buy Shares – Select the property you want to invest in, click “Invest” to choose the amount you wish to invest in each property.
- Earn Income – once your shareholding in your investment is complete, you will start earning income from future rental payments, and you can track your total investment balance on the summary page.
- Increase your portfolio and income when more properties are listed.
We engage property managers to take care of all the operational logistics of managing the homes: including working with tenants, managing any maintenance needs, and keeping track of accounting, insurance, and annual tax returns.
RealtiesNZ is for anybody that wants regular and consistent income from their investments along with increasing their portfolio.
We aim to help thousands of Kiwis to get on the property ladder by allowing people to invest in property without needing to invest large sums into a single property or be burdened with property management.
All NZ citizens, both here and abroad (expats), can invest – you don’t need to be a wholesale or eligible investor.
A single share for RealtiesNZ’s properties starts from as low as $100
Sourcing Fee (One Time) – This is the fee RealtiesNZ charges for our work involved with sourcing the property and preparing it for investment. This fee includes any cost of financing or holding the property while we prepare it for investment. This one-time fee is included in the raised amount and share price listed. The sourcing fee for each property is listed in the Offer Details section of each Information Memorandum.
Management Fee (Monthly): The Management Fee is a fee paid to RealtiesNZ to cover the cost of managing the Holding Companies administration. This fee is paid out of the income from the property. The asset management fee is listed in the Offer Details section of the Information Memorandum.
RealtiesNZ offers a real alternative to the share market. We use technology to enable individual investors to invest in tenanted Kiwi properties with low fees and low minimums, allowing anyone to unlock real estate’s historically consistent and exceptional returns.
To maximise returns and minimise risk, we select blocks of multi-family units (1-2 bedrooms each). We also look for apartments and single-family homes in high demand areas.
A holding company (SeriesNo Ltd) is formed to hold the title of each property. When you purchase shares in the Holding company, you directly buy ownership in that property. So, if, for example, you purchase 1% of the shares in the holding company, you would have a 1% share in the property. That entitles you to 1% of the economic interests of the property over time, which may include income from rent and property value appreciation.
RealtiesNZ outsources property management. Of course, we still carefully monitor and care for each of the properties.
The property management companies manage the property, the tenants, and maintenance, but they don’t look after the rent income; rent is paid directly to the holding company.
Costs associated with property management and maintenance are taken out of the rental income paid to the holding company’s shareholders.
No.
RealtiesNZ have no material ownership stake; there is a clear separation between RealtiesNZ and investment properties. Rent is paid directly to the holding company.
In the unlikely event of RealtiesNZ ceasing to operate, investors would still collectively own the company that owns the property, so they could collectively choose to appoint a new property management company. RealtiesNZ would also propose the appointment of a new manager to make all significant decisions.
We mitigate this risk by selecting multi-tenanted properties with high occupancy. Also we look for high demand areas.
Returns could be in the form of:
- Rental income
- Property value growth (capital gains)
While we cannot predict future returns, the NZ Property market has performed strongly over a long time. N.B. past performance may not be indicative of future results.
- Property Value Growth:
– New Zealand property values have risen by almost 300% since 2003^. That represents an annual average increase per year of around 7.5%.
– Based on this appreciation, if you purchased a property for $345,000 in 2003, it would be worth $1m today. - Cash from Rental Income:
– Realties investors receive quarterly cash dividends from rental payments received from property tenants. The rental income you receive will be proportional to your property ownership.
– The average weekly rent has consistently grown over the last ten years. See Graph
A gross dividend is paid as a cash dividend plus any tax credits such as resident withholding tax and imputation credits.
If you are a New Zealand Citizen, have a NZ driver’s License or NZ Passport and have a New Zealand bank account, you are able to purchase shares.
Unfortunately, you need to have a New Zealand bank account. As part of our security checks, we need to see if your payments are coming from an account in your name – and we can only do that with a New Zealand bank account.
No, you don’t need to go through a stockbroker to Invest. You can open your account, and after you’ve completed the anti-money laundering checks, you will be able to trade.
A diversified portfolio refers to owning different assets, such as stocks, bonds and properties. A diversified portfolio helps to spread the risk by reducing the possibility of significant fluctuations in the total value of your investments.
Shareholders can check their shareholding anytime by searching on the NZ Companies Office website.
All properties are held in separate holding companies. The first property will be held by SeriesNo1 Ltd, the second SeriesNo2 Ltd etc.
- A Limited Liability Company
- Two directors, one independent, the other from RealtiesNZ Ltd
- Has no debt
- Receives rental income
- No employees
- Minimal overheads
- Uses sub-contractors to maintain the property
- All shareholders enjoy any benefits
RealtiesNZ Ltd do not own any property. All properties are held in separate holding companies. The first property will be held by SeriesNo1 Ltd, the second SeriesNo2 Ltd etc.
- A Limited Liability Company
- Two directors, one independent, the other from RealtiesNZ Ltd
- The only asset/entity is a singular property
- Has no debt
- Receives rental income
- No employees
The CV is an estimated value of the land and building done by the council for rates purposes.
