Invercargill homes grabbed by Australians

Australians are flocking to Invercargill to buy up three-bedroom houses to rent out.

It is being put down to growing student numbers at the Southern Institute of Technology, which has a zero fees scheme.

That has left students looking for accommodation, and the Australians are cashing in by buying homes to rent out.

Local Real Estate Institute spokesman Ron Weir says they have been coming over for several months.

They are snapping up houses for around $100,000.

He says they are getting a higher percentage return on their money than they would at home, partly because there is no stamp duty or land tax in New Zealand.

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