31 Jan Foreign Buyer Ban NZ: What Does It Mean For You and the NZ Property Market?
In October last year the foreign buyer ban NZ came into effect and some New Zealanders breathed a sigh of relief, but should they have? Will the foreign buyer ban NZ have any impact on property prices or overseas ownership? According to the Real Estate Sector in New Zealand, the change in property law will not help kiwis who are struggling to afford their first home. However the Associate Finance Minister David Parker says it will still help in the way of stopping Kiwis being outbid by foreign buyers.
According the average amount of property transfers that happen each year in New Zealand, only 3% have foreign buyers. That equates to approximately 4200 houses. This number may seem small, but when you add up the total year to year, the number grows significantly, therefore these restrictions may start to have an effect on Kiwi first home buyers after all.
Australian Property Restrictions and What They Show.
Before these restrictions came into effect in NZ, Australia had already banned foreign ownership on existing (opposed to new) residential properties. However, they hadn’t created any restrictions for foreign trusts and corporations, which means that their laws are less strict than ours. So far, there is little evidence that shows that these restrictions have had any impact on slowing housing price inflation in Australia.
How did foreigners react to the foreign buyer ban NZ?
A large percentage of foreign property buyers are from China as they prefer to invest outside of China, in countries that have a more stable economy which can provide good returns on investment. Upon hearing the news of the new restrictions being put in place against foreign buyers, many Chinese jumped at their last chance to buy in NZ. There was a 59% increase in NZ property enquiries on just one of many real estate websites advertising NZ property to China.
The foreign buyer ban NZ frees up property for Kiwis, now it’s time to find an Auckland law firm that knows real estate law.
With the extra 4200 homes opening up to Kiwis each year, it’s time to look into a conveyancing law firm in Auckland to help you understand real estate law with your property transactions. Quay law can help you with purchasing, selling, conveyancing, financing and all general legal advice you could need to know. If you have found or are selling the perfect home, call Quay Law to speak to a qualified and professional conveyancing and property lawyer.