Real estate in the Cook Islands is extremely limited
The maximum term for which real estate lease contracts can be executed is 60 years. Shorter leases are also available for real estate for sale. The Cook Islands are part of the Pacific Rim of the islands and the main industry is tourism. The only people who can buy real estate for sale are available to:
* natives of
* Those who have immigration status of permanent residence
* Those who are buying an existing business or those planning to set up a business in the Cook Islands.
Rarotonga is the largest island and also the most developed for real estate. Many investors are interested in buying properties here and the asking price for villas can range from NZ$450,000. Available properties for sale on the beachfront and near the beaches. It also has an international airport which makes access very easy. There are daily flights from Australia and New Zealand and also from other parts of the world.
Foreign holiday apartments are also currently available for foreign owners and can range from NZ$200,000 to NZ$400,000 depending on locations in Rarotonga. Many of these properties also allow the owner 20-40 days of free use of the property. Rental yields can be extremely high and can start at around 20-30% per year. If the landlord wants more free stays, rental yields will go down. These vacation rentals are maintained by a third party company and the owner can receive up to 50% of the gross rental income.
Along with vacation homes and villas, restaurants and shops are also desired, and these can also be obtained for a 60-year lease term. Sometimes the existing tenant on the land may also sell their current business to another company or person.
Average land values are in the range of NZ$150,000 for a 50-year lease term for approximately 0.25 acres. Land leases must be paid in advance for the entire term of the lease. Since tourism, copra, and citrus exports are the main sources of income, Cook Island’s economy is not greatly affected. It also has limited infrastructure and is also periodically hit by natural disasters.