Real estate in the Cook Islands is extremely limited
The maximum term for which real estate leases can be entered into 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:
* Native of
* Those who have permanent residence immigration status
* Those who are purchasing 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 property here and the asking price of the villas can range from NZ$450,000. Available properties for sale on the beachfront and close to 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.
Overseas holiday apartments are also currently available to overseas owners and can range from NZ$200,000 to NZ$400,000 depending on locations on Rarotonga. Many of these properties also allow the owner 20-40 days of free use of the property. Rental returns can be extremely high and can start around 20-30% per year. If the owner wants more free stays, the rental yields will go down. These vacation rentals are maintained by a third party company and the owner may receive up to 50% of the gross rental income.
Along with vacation homes and villas, restaurants and shops are also desired, and these too can be had 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 acre. Ground leases must be paid in advance for the entire term of the lease. With tourism, copra and citrus exports being the main sources of income, the Cook Island economy is not greatly affected. It also has limited infrastructure and is also periodically affected by natural disasters.