Government eases property rules for overseas investors
Overseas-based investors holding a New Zealand investor residence visa are now allowed to buy houses in New Zealand, in a move designed to encourage more investment and help grow the economy.
Prime Minister Christopher Luxon said that while the ban on foreigners buying residential housing would remain, the Government wanted to bring additional investment, skills, ideas and connections to New Zealand – and the Active Investor Plus residency visa allowed that, as it offered residency to migrants who:
- Invest a minimum of $5 million to help grow the economy.
- Pass a good character test.
- Have acceptable health.
The Prime Minister said that because Active Investor Plus residency visa-holders do not have to be in New Zealand for six months of each year, the foreign buyer ban meant some did not meet the threshold for buying a house under the Overseas Investment Act. “The Government has therefore decided that people with an Active Investor Plus residency visa will be allowed to buy or build one home. The minimum value of the house that can be bought or built will be set at $5 million – which equates to less than 1% of New Zealand houses,” he said.
Protection versus growth
The Prime Minister described the change as one that “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 visa since it was re-launched on 1 April. If all these applications were approved and proceed, it would mean a potential total minimum investment of $1.8 billion in the New Zealand economy.
Individuals who received residence visas under the previous Investor 1 and 2 visa categories will also be eligible for this new housing provision.
Two investment categories
- Growth: Higher-risk investment, including direct investments in New Zealand businesses, with a minimum of $5 million for at least three years.
- Balanced: Mixed investments, including lower-risk options, with a minimum of $10 million over five years.