Foreigners banned from buying homes in New Zealand

The New Zealand government wants to cool red-hot house prices in cities like Auckland

The New Zealand government wants to cool red-hot house prices in cities like Auckland

Analysts say it's still unclear how much difference the new law will make.

Which is to say that, rather than only overseas buyers pulling out of the market, the entire system freezes temporarily as locals and non-locals alike wait to see what effect the new policy will have on prices.

A landmark bill banning overseas buyers from purchasing existing Kiwi homes has passed into law.

Foreigners who already own property will not be affected.

Worldwide buyers will still be permitted to buy new properties and land to be used for house building projects.

Who does the ban affect? .

Nearby Australia has also tried to slow runaway house prices with measures including a similar ban on foreign investors buying existing properties.

New Zealand Prime Minister Jacinda Ardern.

Similarly, Titanic director James Cameron who has snapped up a swathe of land in the Wairapapa wouldn't be excluded as he has stated he will live indefinitely in New Zealand with his family.

The programme included KiwiBuild, more social housing and the Urban Growth Agenda. What's more, the ban doesn't apply to residents of either Australia (which make up the second-largest group of New Zealand's overseas buyers) or Singapore.

Anyone holding a resident visa, and has been living here for at least a year, including at least 183 days in the past year, is still be able to buy a house.

New Zealand's Trade and Economic Development Minister David Parker described the passage of the bill as a "significant milestone".

Strengthening the Overseas Investment Act was a priority in New Zealand First's coalition agreement with Labour.

Damper Bay on Lake Wanaka, where Peter Thiel owns land.

Most foreign buyers in New Zealand don't state where they're from, official data shows, but the majority of those who do are from China.

"In a recent quarter, 20 percent of the homes sold in central Auckland were sold to overseas buyers".

"We have always been concerned with the sell-off of our land and housing stock to foreign nationals".

And earlier this year the organization estimated that if the average Auckland household wanted to buy even a relatively low-cost house, one that was cheaper than 75 percent of the city's market, they would need to save for 16 years just to afford the deposit. Information on the ownership of corporate entities is not available.

Within Auckland the suburbs with the highest proportion were Waitemata (the inner city, 22 per cent), Upper Harbour (9.2 per cent) and Howick (8.2 per cent).

Residential houses are seen in Wellington, New Zealand, July 1, 2017.

Real Estate Institute boss Bindi Norwell said she was disappointed the bill had been passed.

New Zealand has banned most foreigners from buying homes as it grapples with housing affordability problems.

"Whether it's a attractive lakeside or ocean-front estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the global market", he added.

Naturally, leaders and industry insiders in B.C. are watching New Zealand with interest, to see if it will "work" in terms of making homes more affordable.

New Zealand has also proved to be a popular retreat for the rich and famous.

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