NZ Labour plans curbs on foreign home buyers
"The next Labour government will introduce restrictions so that non-residents will not be allowed to buy any existing house, flat or apartment," Labour leader David Shearer said.
The policy will apply to buyers from every country in the world other than Australia, Mr Shearer said.
The policy aims to reduce demand in the housing market from foreign speculators.
Non-residents will be able to build new homes.
Mr Shearer said the rule would not apply to Australian buyers because if New Zealand stopped Australians buying homes "we would risk the possibility they would shut us out as well".
Inland Revenue Department records showed that more than 11,000 overseas investors owned New Zealand properties they didn't live in, Mr Shearer said.
"An estimated 2600 homes were bought last year by offshore property speculators who had no intention of living here. That's a big chunk, given that just 4700 new homes were built in Auckland last year," he said. AAP
Frequently Asked Questions about this Article…
The opposition Labour Party has proposed restricting non-residents from buying any existing house, flat or apartment in New Zealand. The policy is aimed at preventing offshore buyers from purchasing existing residential properties.
Yes. The policy would apply to buyers from every country except Australia. Labour leader David Shearer said Australian buyers would be exempt to avoid the risk that Australia might reciprocate and bar New Zealanders from buying there.
Yes. According to the proposal, non-residents would still be able to build new homes even though they would be prevented from buying existing residential properties.
Labour says the restrictions are intended to reduce demand in the housing market from foreign speculators, aiming to limit purchases by offshore investors who are not living in New Zealand.
Inland Revenue Department records cited in the article show that more than 11,000 overseas investors owned New Zealand properties they did not live in.
The article reports an estimated 2,600 homes were bought last year by offshore property speculators who had no intention of living in New Zealand.
Labour pointed out that the estimated 2,600 offshore speculator purchases are significant compared with the 4,700 new homes built in Auckland last year, implying speculator demand represents a substantial portion of housing activity in that market.
Based on the proposal, non-resident investors would be prevented from buying existing homes in New Zealand, while Australian buyers would still be able to buy. Non-residents could still build new homes. Resident domestic buyers would not be directly restricted by this policy as described in the article.
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