Coalition Government parties have agreed that overseas-based investors with a New Zealand investor residence visa will be allowed to buy a house here, to encourage more investment to grow the economy, Prime Minister and Botany MP Christopher Luxon says.
“The ban on foreigners buying residential housing will remain.
“However, the Government wants to bring additional investment, skills, ideas and connections to New Zealand, and the Active Investor Plus residency visa allows that.
“It offers residency to a migrant who invests a minimum of $5 million to help grow the economy, passes a good character test, and has acceptable health.
“But, because Active Investor Plus residency visa-holders do not have to be in New Zealand for six months of a year, the foreign buyer ban means some do not meet the threshold for buying a house under the Overseas Investment Act.
“The Government has therefore decided people with an Active Investor Plus residency visa will be allowed to buy or build one home.”
Luxon says the minimum value of the house that can be bought or built will be set at $5 million, which equates to less than one per cent of New Zealand houses.
“This change navigates a path between those who do not want foreign ownership opened up, and the desire to attract high net worth investors by deepening their connection to our country to help grow the economy.
“There have been more than 300 applications for the Active Investor Plus residency visa since it was re-launched on April 1.
“If all these applications are approved and proceed, it means a potential total minimum investment of $1.8 billion in the New Zealand economy.
“Globally, New Zealand has a deserved reputation as a great place to live and we want to grow our economy. By opening our door just a little to allow significant investors to own a home, we will help attract more of those who want to contribute to the community and country.”
The Labour Party says the Government’s decision to allow foreign buyers into the New Zealand property market will “drive up prices and make life harder for Kiwis wanting to own their own home”.
“Today’s announcement shows how out of touch Christopher Luxon is,” Labour housing spokesperson Kieran McAnulty says.
“Many Kiwis are already struggling to buy a home, and he has just made it worse.
“More pressure at the top end pulls up house prices for the average Kiwi.
“New Zealanders should be at the top of the priority list for houses.
“Homelessness is up, unemployment is up, and people cannot afford the basics at the supermarket, but Christopher Luxon made it his priority to drive up house prices again anyway.
“National made home ownership harder for New Zealanders from the beginning when they took away the First Home Buyers grant and handed out $3 billion to property speculators instead.
“There’s no doubt in my mind who Christopher Luxon is governing for.
“He’s rolling out the red carpet for wealthy foreign buyers, while cutting Kiwis out of the market.”
