New Zealand implements new law governing foreigner's purchase of residential use properties. It is a move to the continuous increase and decrease in the prices of the residential houses in the country.
The law prohibits foreigners from purchasing residential homes in hope to keep under government control offshore speculators blamed for residential property price spiraling.
The Overseas Investment Amendment Bill limits foreign purchasers, was approved wellington on Wednesday after passing its final reading in the parliament. Associate Finance Minister David Parker statement said that the restrictions are effective within its second month after its formal approbation from the head of state, the Governor General.
Parker said that the New Zealand Government believes that its people are more deserving of its land than wealthier foreign buyers. Parker actively participated in the realization of the legislation in the parliament. He said that the marketing of its land, of any kind, should be ensured to be set in the Country and not in the international market.
The banning of foreign buyers is a campaign platform in PrimeMinister Jacinda Ardern in the 2017 election. The campaign claims that overseas buyers substantially increased the price for a residential property that made it not affordable for the countries own people. According to the Bloomberg, prices of a housing estate in New Zealand increased at about 60 percent in a decade amid which declined homeownership to its lowest since 195t1.
The implementation of the bill was fuelled by the perception that the country is used as a brothel of the international elites. Famous wealthy people like the tech billionaire Peter Thiel and Matt Lauer, a U.S. broadcaster, were recorded to have purchased some of the most sought-after properties in the country.
New Zealand's new law levels its residential purchase policy with its neighbor, Australia, that classifies its residential properties as "sensitive" implying that non-residents of the country are prohibited to purchase existing houses without proper papers from the Overseas Investment Office.
A foreigner who wants to purchase residential houses needs to prove that the property that they wish to purchase will benefit the country. The policy permits them to purchase residential properties to be converted into business types.
There has been an objection in the implementation of the law from the wealthy investors that threatens that the ban might have a substantial effect in the investments in the economy and it might affect the countries negotiations in offshore markets.
