Can Foreigners Buy Property in New Zealand? Everything You Need to Know

Can Foreigners Buy Property in New Zealand?

In the majority of cases, existing houses cannot be purchased in New Zealand by foreigners who are not residents or citizens. The sale of most residential properties by foreigners is limited by the Overseas Investment Amendment Act 2018. This legislation was brought out to ease the strain on the housing market and also to make sure that New Zealanders get first preference when it comes to owning homes.

Who Can Buy Property in New Zealand?

Although the limitations are quite strict, there are certain options available to allow certain foreigners to buy property:

• The citizens can purchase any kind of property.
• Any permanent resident who has lived in NZ for at least 12 months and has spent at least 183 days of that year physically inside the country can purchase property.

They will normally be excluded due to free trade agreements and will be able to purchase residential land in New Zealand just as the locals.

• Individuals with a work visa or student visa are not permitted to purchase a home.
• They can purchase development land or build-to-rent, provided with the consent of the Overseas Investment Office (OIO).

Certain exemptions allow foreigners to purchase apartments in major new projects (e.g. 20+ apartments) on condition that such an apartment is not initially planned as an owner-occupied property.

What Types of Property Can Foreigners Buy?

Non-citizens and foreigners are prohibited from buying land in New Zealand, though there are some avenues offered under special conditions. In general, foreign citizens can not acquire already constructed residential houses, although they are allowed to invest in commercial real estate, e.g., offices, dealerships and production premises.

Furthermore, foreigners can be restricted from purchasing new apartments in large-scale development, particularly, in case the apartments form a part of an authorised venture or appurtenance consisting of 20 or additional units and not supposed to be used personally. It is also feasible that you may acquire land with the view to developing new housing, other residential property, and other development, but this again must first be consented to by the Overseas Investment Office (OIO).

Why Invest in New Zealand Property?

Despite challenges, New Zealand is equally an ideal choice for long-term investors because:

• An open system of the law.
• A solid economy and political climate.
• Great demand for rental housing.
• The possibility of increasing capital in chosen regions.
• The commercial and off-plan residential developments are the areas in particular that continue to be open to overseas investors.

Tips for Foreign Buyers

• Get Legal Advice: The property laws of NZ are special. A solicitor in the area can help you go through the process.
• Work with a Licensed Agent: Professionals may assist in locating suitable property as well as in compiling the OIO if necessary.
• Understand the Purpose: Whether a developer, relocator, or an investor? What you can purchase is dependent on the purpose for which you want to use it.
• Plan for the Long Term: NZ real estate would be most appropriate to an investor who is ready to face regulations to get long-term returns.

Conclusion

To conclude, although there are limitations on foreign ownership of residential housing in New Zealand, which ensure domestic affordability in housing prices, foreigners can still make investments in various ways, especially in commercial real estate, new construction projects, and large housing schemes. Citizens and permanent residents will have more access, and there are some exemptions for Australians, Singaporeans, and approved investors. New Zealand is a stable and lucrative long-term market with good prospects, provided one is ready to follow the course of legality.