The existing rules
In February 2024, we explained the basic rules for new residents buying a home. Under the Overseas Investment Act, people who have been residents for 12 months and have actually been here for 183 days in that time (6 months) can apply to purchase a home to live in.
See our blog for details.
This has always been a challenge for our investor clients, whose contribution to New Zealand is through their investment rather than spending large blocks of time here. The current requirement to live in New Zealand can be as little as 21 days over three years for applicants under the Active Investor Plus: Growth category.
New rules
The Government has now announced a limited exemption to New Zealand’s foreign buyer ban. Those with Active Investor Plus resident visas (and earlier Investor 1 and Investor 2 visa holders) will soon be able to purchase or build one residential property valued at NZD$5 million or more without staying here for 6 months.
It is estimated that about 10,000 houses across the country would currently be eligible for purchase. The Prime Minister, Christopher Luxon said that 80 per cent of them are in Auckland and 10 per cent in Queenstown.
The Active Investor Plus (AIP) Category has recently been changed into two streams:
- Growth – NZ$5 million investment.
- Balanced – NZ$10 million investment.
Applicants can obtain residence by making the minimum investments and meeting the minimum days-in-New Zealand requirements under this category.
See our blog for details.
The Foreign Buyer Ban Legislation will be amended to allow those with AIP resident visas to purchase or build one residential property, provided it is valued at NZD$5 million or more. Existing restrictions on sensitive land (including rural and farm land) will continue to apply.
The exemption will also extend to individuals who obtained residence under the former Investor 1 and Investor 2 visa categories.
This is not a full reversal of the foreign buyer ban, but a narrow exemption designed to help attract talented individuals and their capital to New Zealand.
We will update our clients when further details are released.
Contact our Director Richard Small for more details.