Government Cracks Down on Foreign Property Buyers
The key points from the recent announcement are:
- Residential housing will be classified as “sensitive land”.
- Housing classified as sensitive land will not be able to be purchased or gifted without Overseas Investment Office consent.
- There will be a residency test for purchasers.
- Those who already own property in New Zealand will not be affected as the legislation is not intended to be retrospective.
- Those who are not residents or citizens will still be able to purchase land and build new housing or purchase “off the plan”.
- Australian buyers will be exempt.
- It is expected the legislation will be introduced to Parliament by Christmas and passed early in the New Year.
At this stage there are limited details of the proposed legislation changes available. We will be closely monitoring and reviewing the changes in order to advise our clients in relation to the new process and to assist with obtaining Overseas Investment Office consent where necessary.
The above information is of a general nature only. You should contact our firm for advice relating to your specific circumstance.
About Chris Boivin
Chris is a Partner advising clients on a wide range of matters. He assists with both commercial, rural and residential property matters, as well as business transactions and asset planning.
About Victoria Agnew
Victoria graduated from the University of Canterbury in 2016 with a Bachelor of Laws.