Foreign Investors - What’s happening in NZ?
Property investment by foreigners seems to be ever growing in the New Zealand market, with an increasing number of people from outside the country wanting to buy real estate.
Whilst people from abroad are actively investing in the real estate market, restrictions have been placed for those coming across the shore to buy.
After new legislation passed in October 2015, a new set of rules applies to ‘offshore’ buyers. According to New Zealand’s Overseas Investment Office, who is in charge of foreign investment policies, anyone wanting to buy property in NZ after 1 October 2015 will need an IRD number which will need to be provided before settlement date.
Most banks in NZ have stopped lending to foreign investors which has led to them borrowing from their home countries or bringing cash into the country to make purchases.
What impact does it have on NZ property market?
Foreign investing has made a significant impact on the property market all around the country. New Zealanders have seen an increase to the cost of investing in real estate, especially in Auckland where property prices have hit the one million dollar mark.
What does the future look like?
Whilst these overseas investors come from different countries, most originate from the UK, China, Hong Kong and Singapore.The growing number of foreign investors is likely to continue to grow with a large number of developments and hundreds of homes being built.