At the end of last year, New Zealand’s parliament passed a ban on non-resident foreigners from buying existing homes. Prime Minister Jacinda Ardern led the campaign in response to the rising housing prices and increasing rates of homelessness. The ban was initiated in hopes to empower New Zealanders to buy property at a fair price. The Overseas Investment Amendment Bill was passed in August, 2018 and will take effect within two months of receiving formal approval. With stunning scenic views, sunny weather for most of the year, and an education system ranked as one of the best in the world, it’s easy to see why New Zealand is such an attraction. Wealthy investors have been largely blamed for the rising prices, buying into the property market to take advantage of all New Zealand has to offer. One of the largest cities in the country, Auckland, has suffered a staggering rise: housing prices have almost doubled in the last decade while the rest of the country has seen a rise by 60%. There has been some criticism of the ban in which Dave Platter, the spokesperson of the Chinese real estate portal, Juwai.com said, "Foreign buying ... tends to be focused on new development, making clear again that foreign investment leads to the creation of new dwellings. That's vital in a market with a housing shortage, like Auckland." Investors don’t want to lose out on opportunities in the country and New Zealanders want to be able to buy property at a fair price. With the ban providing limitations on non-resident buyers, what does this mean for you? Right off the bat, if you are Australian or Singaporean, you won’t be affected by the ban due to complications around existing trade agreements. Previous investments in existing property prior to the ban will also be unaffected. You will be able to purchase if you’re a resident visa holder who has been in the country for at least 183 days, with some stipulations. Difficulties are mainly found with those who are looking to buy existing property for investment. However, there are still opportunities out there. For example, there are laxer requirements if you’re looking to purchase a newly built property, but the government will only allow foreigners to purchase a restricted number of newly built apartments. There are also opportunities in retirement villages, student accommodation and aged-care facilities. Even with these prospects however, there is still a need for overseas buyers to convince regulators that they can offer benefits to the country. Therefore, although New Zealand’s ban was prompted by a need to regulate the cost of housing, it still invites foreign investment with some limitations. If you’re looking to move and would like advice on purchasing or renting property abroad, then get in touch with us today.