Black Monday

[freddagg]

I wish I was misreading it.

By designating all residential property as sensitive land, only people who are ordinarily resident in NZ (extracted definition below) can purchase without going through an approval process (which has now been made more difficult and therefore time consuming and expensive). Like most expats I am not ordinarily resident in NZ, so I get lumped in with the foreigners.

The press coverage mentions that people from Australia and Singapore are exempt because of trade agreements. If that is correct it creates the bizarre situation that non-NZ citizens from these countries can purchase residential property but NZ citizens living elsewhere cannot.

In this Act, a person is ordinarily resident in New Zealand,—
(a)

for the purpose of an overseas investment in sensitive land where the relevant land is or includes residential land, for the purposes of a transaction that will result in an overseas investment in sensitive land where the relevant land is or includes residential land, and related matters, if the person—(i)

holds a residence class visa granted under the Immigration Act 2009; and

(ii)

has been residing in New Zealand for at least the immediately preceding 12 months; and

(iia)

is tax resident in New Zealand; and

(iii)

has been present in New Zealand for 183 days or more in total in the immediately preceding 12 months (counting presence in New Zealand for part of a day as a presence for a whole day):

On that definition almost no one would qualify.
I am a NZ born citizen so I don"t have a "residence class visa" so I would fail at a(i)

[dobby41]

Doesn’t the main bill say all this does not apply to NZ Citizens ...that hadn’t changed in the Amendment

I think that's the key - it is an amendment to the regulations, not the regulations themselves.

[BlackPeter]

Unfortunately too many foreigners just parking their money in NZ real estate. There's neighbourhoods in AKL you can drive around with dozens of empty houses, uncut lawns etc owned by foreigners who have never set foot in the country. Doesn't make for healthy vibrant safe communities which should be a core precept of public policy. Until recently around 20% AKL sales were to foreign speculators/investors, which is now having a flow on effect to rest of the country. NZ housing debt to overseas owned banks is staggering, in the absence of capital gains tax, something needed to be done.

Do you have any credible source for your claim "around 20% AKL sales to foreign speculators / investors"?

This number is not consistent with the stats I have seen and I assume just made up by some xenophobic crowd like Mr "Chinese sounding names".

[Blue Skies]

Do you have any credible source for your claim "around 20% AKL sales to foreign speculators / investors"?

This number is not consistent with the stats I have seen and I assume just made up by some xenophobic crowd like Mr "Chinese sounding names".

Statistics NZ is the source, as quoted in a number of diff media including Interest.co.nz.

First 3 months of 2018, 1 in 5 houses sold in Waitemata Ward (Central Auckland, which includes Auckland CBD, Parnell, Grafton, Herne Bay, Ponsonby, Westmere, Grey Lynn, & Waiheke,) were to overseas buyers. It's lower in other areas e.g. 1 in 7 houses in Western North Shore ( Beach Haven, Glenfield, Northcote, Birkenhead) so concentrated in some areas, but still too high & this 3% overall nationally figure which gets quoted is misleading & implies there isn't a problem when clearly there is in some areas where there is already a housing shortage.

Appreciate for some there may be a degree of xenophobia , but that shouldn't cloud the fact that most of us welcome diversity & new immigrants, it's the rampant speculation on housing stock by overseas buyers which is shutting young families & esp Maori out of owning their own homes & the downstream consequences of that, which I worry about.

[Joshuatree]

Great post and verification. Removing 3% of buyers nationally makes a huge difference.

[silu]

Do you have any credible source for your claim "around 20% AKL sales to foreign speculators / investors"?

This number is not consistent with the stats I have seen and I assume just made up by some xenophobic crowd like Mr "Chinese sounding names".

I have come to the understanding that I as a Permanent Resident have been included as a foreign buyer in the ASB stats that came out a few weeks ago. Been here 20+ years uninterrupted.

[BlackPeter]

Statistics NZ is the source, as quoted in a number of diff media including Interest.co.nz.

First 3 months of 2018, 1 in 5 houses sold in Waitemata Ward (Central Auckland, which includes Auckland CBD, Parnell, Grafton, Herne Bay, Ponsonby, Westmere, Grey Lynn, & Waiheke,) were to overseas buyers. It's lower in other areas e.g. 1 in 7 houses in Western North Shore ( Beach Haven, Glenfield, Northcote, Birkenhead) so concentrated in some areas, but still too high & this 3% overall nationally figure which gets quoted is misleading & implies there isn't a problem when clearly there is in some areas where there is already a housing shortage.

Appreciate for some there may be a degree of xenophobia , but that shouldn't cloud the fact that most of us welcome diversity & new immigrants, it's the rampant speculation on housing stock by overseas buyers which is shutting young families & esp Maori out of owning their own homes & the downstream consequences of that, which I worry about.

I think your numbers are wrong. Here is the publication from statistics NZ for the relevant quarter:

https://www.stats.govt.nz/news/just-...verseas-buyers

[traineeinvestor]

On that definition almost no one would qualify.
I am a NZ born citizen so I don"t have a "residence class visa" so I would fail at a(i)

From OneRoof: "Existing homes will no longer be available non-residents other than those from Australia and Singapore due to existing free-trade deals."

[blackcap]

From OneRoof: "Existing homes will no longer be available non-residents other than those from Australia and Singapore due to existing free-trade deals."

What? That means I cannot purchase a property in NZ? have lived here for 35 years plus and have permanent residency. Surely this is an error somewhere as there are bound to be plentiful like me who came to NZ years ago and have never changed to being a citizen?

[traineeinvestor]

What? That means I cannot purchase a property in NZ? have lived here for 35 years plus and have permanent residency. Surely this is an error somewhere as there are bound to be plentiful like me who came to NZ years ago and have never changed to being a citizen?

I have not looked into the position of people who are NZ permanent residents but not NZ citizens but understand that they are exempted provided they meet a few criteria including being tax domiciled in NZ.

I'm getting conflicting feedback from various people so have probably reached the point where I should get clarification from a lawyer who practises in this area.