NEW ZEALAND

Buying property in Auckland, Wellington, Dunedin

Can You Purchase and Own Property in New Zealand as a Foreigner?

Yes, foreigners can buy property in New Zealand, but there are specific rules and regulations to navigate.

Here's a guide covering what you need to know: Foreign Ownership Rules
New Zealand has restrictions on foreign property ownership aimed at addressing housing affordability and land conservation. As a foreigner, you are generally prohibited from purchasing existing residential homes unless you meet certain criteria, such as being a resident or acquiring special permissions. However, you can purchase newly constructed properties in designated housing developments.
If you're interested in land, it's more complex. Foreigners are restricted from buying "sensitive land," which includes:
• Farmland
• Islands
• Land near bodies of water
To buy such land, you must go through a rigorous screening process with the Overseas Investment Office (OIO). This process evaluates the benefits your investment will bring to New Zealand and assesses your connection to the country.
Citizens of Australia and Singapore
Citizens and permanent residents of Australia and Singapore have an easier process for buying property due to free trade agreements with New Zealand. They are exempt from some of the restrictions placed on other foreigners.
Investment and Residency
Owning property in New Zealand does not automatically grant you residency. New Zealand does not have a "Golden Visa" program like some countries, where property investment leads directly to residency. If you want to live in New Zealand, you will need to go through the normal immigration channels and apply for a visa.
Investor Visas
New Zealand offers Investor Visa categories for those looking to invest significantly in the country:
1 Investor 1 Visa: Requires an investment of NZD 10 million over three years.
2 Investor 2 Visa: Requires an investment of NZD 3 million over four years.

While these visas allow you to invest in various sectors, including real estate, they involve more than just buying property. You must fulfil conditions over several years, such as maintaining the investment and spending time in New Zealand.
Buying Process for Foreigners
• Financing: Foreigners can get property loans in New Zealand, subject to meeting lender requirements. Banks like ANZ, ASB, and Westpac offer mortgages to non-residents, but you typically need a valid residence permit and proof of income.
• Taxes and Fees:
◦ Rental Income Tax: 10.5% to 33% depending on income.
◦ Goods and Services Tax (GST): 15% on new or newly built properties.
◦ Overseas Investment Office Consent Fee: NZD 2,040 ($1,471 USD) for land used for residential purposes.
◦ Agent Fees: Typically, 3% to 4% of the purchase price, plus 15% GST (paid by the seller).
◦ Conveyancing or Lawyer Fees: Around NZD 1,500 ($1,082 USD).
◦ Land Information Memorandum (LIM) Report: Varies depending on the local authority.

Market Data and Insights
• GDP Growth: New Zealanders have become 4.6% richer over the past five years, which could lead to increased demand for real estate.
• Rental Yields: Gross rental yields in New Zealand range between 2.3% and 5.0%, depending on the property and location. These are modest returns that cover expenses while offering some income.

Life as an Expat in New Zealand
This country must be right up there when it comes to favourite countries to live in. It has everything! Skiing, surfing, hiking, rock climbing, fjords, SCUBA diving, Ski Diving, volcanoes, beautiful beaches, amazing food and culture…and with a population of just 5m. Expats often find life in New Zealand rewarding due to its stunning scenery, outdoor activities, and welcoming atmosphere. The cost of living is lower compared to many developed countries, and the job market offers plenty of opportunities. New Zealand is a multicultural society with excellent healthcare, education, and transport systems, making it an attractive destination for expats.

Key Documents for Real Estate Transactions
1 Identification: Passport or driver’s license.
2 Proof of Residence: Bank statement or utility bill.
3 Financial Evidence: Payslips or tax returns.
4 Sale and Purchase Agreement: Signed and dated.
5 Property Survey: Updated.
6 Valuation Report: Up-to-date valuation.

Conclusion
Foreigners can buy property in New Zealand, but there are major restrictions, and additional steps involved, including when it comes to sensitive land or residential properties.

For those interested in residency, New Zealand's investor visas offer a pathway, though they require a substantial financial commitment. Expats often enjoy life in New Zealand due to its beautiful landscapes, friendly locals, and solid infrastructure, making it a desirable place to invest and potentially settle.

We can search, source, and provide the very best property options available for you before negotiating, securing and moving you in.
To find out more, contact us for further details.