The New Zealand government passed a new law earlier this month that now bans any foreign person, regardless of country , to purchase property or homes in New Zealand. The move was made in response to market indicators suggesting that foreign people purchasing houses for whatever reason, is driving up housing cost. The New Zealand government has a goal for its people, 100% home ownership for the population. It is believed that banned foreigners from land or home ownership will lower the housing cost and thus make housing and home ownership a more plausible possibility for its natural citizens.
Key Takeaways:
- A newly instituted New Zealand ban has been fueled in part by tales of wealthy Chinese buyers snapping up homes in Aukland.
- The new ‘no foreign buying of New Zealand residences” does include a couple of exceptions.
- Foreigners with residency status are excluded from the ban, as are Singapore residents, due to trade agreements.
“The move has come in response to a belief in the country that residents of other countries are driving up property prices in New Zealand by purchasing second homes there.”