New Zealand Changing Foreign Property Ownership Laws

By Janet Spencer

New Zealand’s new Prime Minister Jacinda Ardern has announced plans to change foreign property ownership laws in her first 100 days in office. It is expected these changes will be introduced before Christmas 2017.   Shortly, non-resident foreign buyers will not be able to buy existing homes in New Zealand. Reading I have done on this recent announcement suggests that wealthy Americans and other foreigners have been buying homes in New Zealand as a potential “haven” in the event of nuclear conflict occurs and rising incidents of terrorism.  New Zealand also plans to slash immigration volumes.

According to Demographia, Auckland is the fourth-least affordable property market in the world, and prices are being pushed up by wealthy Chinese investors and other foreign buyers. The New Zealand market has climbed 56 percent in the past decade amid record immigration and a housing shortage. 

Our friends from ‘across the ditch’ have found themselves amongst a housing bubble and Ardern believes that cutting out foreign owners purchasing existing homes would help make residential property more affordable for its citizens.

Australians would remain eligible to purchase NZ property as part of a reciprocal agreement between the two countries. Foreign buyers would still be able to buy land and build new dwellings to help increase supply.

So what does this mean for Australia? It’s a wait and see scenario. Foreign investors will still want to buy property and could set their sights on Australia.  They will need to comply with strict rules here around buying existing property regulated by the Foreign Investment Review Board.  Click this link to find out more.

So, if you want to buy here in Melbourne or regional Victoria and need some assistance and guidance to comply with local laws and buy well, please don’t hesitate to get in touch with Buyer Solutions on +61 3 9816 8555 or info@buyersolutions.com.au

Housing Affordability, Housing Market, In The Media, Overseas Buyers, Real Estate News & Opinion, State of the market

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