FEATURE
Ensuring a positive home-buying experience for new kiwis
Pedro Morgan, Lead Advisor, Overseas Investment Office, Toitū Te Whenua Land Information NZ
Let’s set the scene. You’ve just helped a client sell a house — vendor and purchaser have signed on the dotted line and, as settlement approaches, you’re about to send your client a gift to say thank you. Then you receive a call from your very unhappy and stressed-out client.
They call to inform you that settlement is delayed, bridging finance is required to pay off two mortgages, lawyers are involved, legal fees are rising, and the Overseas Investment Office (OIO) is asking questions.
Overseas Investment Act provides a clear legal process for people wanting to make New Zealand their permanent residence, and apply for permission to buy a home to live in.
Your client is stressed. You’re stressed.
Understanding who needs consent and who doesn’t
Why? Because the agreement wasn’t conditional on consent from the OIO, and it needed to be.
‘Overseas persons’ need consent. An overseas person is an individual who is not a New Zealand citizen, and not ‘ordinarily resident’ in New Zealand. Permanent residents may still be overseas persons and need consent.
Some aspects of the consent rules aren’t always well understood. Unfortunately, that sometimes sees buyers breaking the rules without realising it — especially in an active market where people tend to move quickly to secure a property. In situations like these, a well-informed real estate agent can make all the difference in helping people navigate the rules and seek the right legal advice.
Helping new kiwis buy a home New Zealand’s population reflects a growing diversity where large communities from many different parts of the world are now proud kiwis and call New Zealand home. Since 2018, overseas buyers have needed Government consent before buying residential land in New Zealand. The
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The Real Estate Institute of New Zealand
People who are New Zealand citizens or are ‘ordinarily resident’ in New Zealand can buy real estate here without the need for consent. Whether a person is ordinarily resident depends on their visa status and how long they have been in New Zealand. The OIO’s website has more information on how we define ‘ordinarily resident’. Australian and Singaporean citizens (with some restrictions) can also buy certain residential property without consent because of our free trade agreement obligations with those countries. There are also exemptions for relationship property under the Overseas Investment Regulations 2005. Legal advice is recommended in these cases.
