The maximum period for which the lease agreements can be made in real estate is 60 year term period. Shorter leases for the real estate for sale are also available. Cook Islands are part of the pacific rim of islands and the major industry is tourism. The only people that are allowed to purchase real estate for sale are available to:
* Natives of
* Those that have a permanent residency immigration status
* Those that are buying an existing business in or those that are planning to set up a business in Cook Islands.
Rarotonga is the biggest island and also the most developed of the real estate. Many investors are interested in buying properties here and the asking price for the villas can range from NZ$ 450,000. for sale properties is available at the beachfront and near the beaches. It also has an international airport which makes the access very simple. There are daily flights from Australia and New Zealand and from other parts of the world as well.
Holiday apartments for foreigners are also currently available for foreign ownership and can range from NZ$200,000 to NZ$400,000 depending on the locations in Rarotonga. Many of these properties also allow the owner 20-40 days free usage of the property. Rental yields can be extremely high and can start around 20-30% per year. If the owner wants more free stay, then the rental yields will come down. These holiday apartments are maintained by a third company and the owner can receive up to 50% of the gross rental incomes.
Along with holiday homes and villas, restaurants and shops are also desired and these can be obtained for a 60 year lease period also. Sometimes the existing leaseholder on the land can also sell their existing business to another company or person.
The average land values are in the range of NZ$150,000 for a 50 year lease term period for an about 0.25 acres. The land leases need to be paid upfront for the entire lease term period. Since tourism, copra and citrus fruit exports are the major earners, the Cook’s island economy is not vastly affected. It also has limited infrastructure and is periodically hit by natural disasters as well.