NZ NZ to ban foreign purchases of existing housing

Seen a few articles today talking about NZ moving to ban foreigners from purchasing existing stock, will be interesting to see what effect this has.

 

It will be interesting to see if it applies to residential, commercial, existing, new and off the plan.

 

Huh, this hasn't been in place already?

 

New Zealand bans foreign home buyers

 

Article says "will ban" so I suppose yet to happen and we are yet to see impacts.

It will surely give our housing market a push. (for better or worse)

What's worse as a property investor I think prices gowing up is a good thing but the THE over the top migration and loosely regulated foreign investment review board means I'm worried the hose prices have now lost the plot my comment is based on satellite city of and capitals such as Brisbane, Melbourne, Sydney.

 

With Jacinda Ardern at the helm, NZ readies ban on foreign home buyers

Wonder if there'll be a rush to purchase before the ban?

 

The ban was announced by the former PM prior to the election. It is meant to apply to "existing NZ property" and follow a number of actions to curb foreign purchase and unidentified sales - A board withholding regime was introduced after 2015 along with tighter income tax rules intended to act like a CGT without calling it that.

I believe the ban will also affect offshore Kiwis ie those who live in Australia as the definition to be used is residency based.

 

I must admit that nsw 8% land tax on foreigners is a fairly good deterrent.
Although I think it should definitely apply to commercial and definitely on Farm land.

Farm land agribusiness is paramount to the world growth we should not sell out or if we do sell to foreigners the community should benifit exponentially by very large taxes.

 

yeah in the meantime who owns some of the electricity power grids in Australia ?

Chinese investment in Australia's power grid explained

ACT
In the ACT, the Government owns 50 per cent of ActewAGL Distribution Ltd.

The other half is owned by Jemena, in which State Grid Corporate hold a 60 per cent share.

The remaining 40-per-cent share in Jemena is owned by Singapore Power International.

Victoria
There are five electricity distributors in Victoria, with three partly owned by State Grid.

State Grid owns a 20-per-cent share in AusNet Services Electricity Distribution.

It also owns 60 per cent of Jemena, the company which owns Jemena Electricity Distribution Victoria and 34 per cent of United Energy Electricity Distribution Victoria.

Cheung Kong Infrastructure/Power Assets owns a 51-per-cent share in both CitiPower Electricity Distribution Network Victoria and Powercor Electricity Distribution Network Victoria.

The transmission link which transports renewable energy from the Mt Mercer wind farm to the Victorian grid — Transmission Operations (Australia) Pty Ltd Victoria — is partly owned by Cheung Kong Infrastructure.

The Hong Kong-listed group owns a 50-per-cent share.

South Australia
In South Australia, Cheung Kong Infrastructure/Power Assets owns a 51-per-cent share, on a 200-year lease, in SA Power Networks Electricity Distribution network.

The transmitter in that state, ElectraNet, is partly owned by State Grid Corporation — at 46.5 per cent, it holds the largest share.

New South Wales
There are three main electricity distributors in NSW: Essential Energy, Endeavour Energy and Ausgrid. The NSW Government wants to sell half of Ausgrid to fund infrastructure projects.

Endeavour Energy is a NSW-owned distributor, covering Sydney's Greater West, the Blue Mountains, Southern Highlands, the Illawarra and the South Coast.

Essential Energy is also Government-owned and delivers to 95 per cent of NSW and parts of southern Queensland.

Last year, the NSW Government awarded a 99-year lease of electricity transmitter TransGrid to a consortium comprising Canadian, Middle Eastern and local investors. The deal was worth $10.258 billion.

 

The women has BALLS. Maybe Turnbull could borrow them

 

Talking about Jacinda Ardhern . This is a massive move .

 

I thought it would be easier to just tell everyone to go out and get a really good well paying job.

 

It's already law here anyway but people work out a way around it if they desperate enough

 

I have seen with my own eyes the disregard some foreign buyers have for these rules in Australia while attending Auctions in Sydney. My Chinese background friends educated me on what is actually happening and you can see it when they open your eyes to it. For example, you can see all these young Chinese students buying $2m houses, its clearly not their money but the house is in their name. Just part of buying in Sydney now, I'm not sure how the Government could stop it.

 

Agree JB40. 8% won't stop the Chinese. It is 15% stamp duty in Vancouver. Now that might stop them.

 

What is the status over there in NZ in regard to a ban on foreigners buying existing property ? Googled it but found a lot of ambiguity?

Does it also apply to non resident NZ citizens and is this only applying to residential ?

Are Australian citizens exempt ?

 

Will it be an Australian style ban on foreigners owning property?

99% of buyers get FIRB approval here.

 

Yep, they will just get around it by using proxy buyers, either family or friends who are already permanent residents/citizens or they pay someone -- it's very hard to stop.

 

Few countries can compare to Singapore in terms of discouraging people to buy properties for investment

The latest round of increased stamp duty was announced yesterday and take into effect immediately.

Raising ABSD for second homes among new property-cooling measures announced
New property cooling measures announced: Higher ABSD rates, tighter loan limits

The difference here is foreigners aren't the only ones targeted but also local Singapore citizens and residents. Any Singaporeans who buys a second property need pay extra stamp duty of 12%. This is on top of the original 3% stamp duty payable.

On the other hand, foreigners need to pay a whopping 20% extra stamp duty for any property they buy and they are banned from buying house and land, the most prized property in Singapore.

The message from the govt of Singapore is crystal clear - Houses are meant for own stay. Anyone who attempt to buy properties as investments, be them locals or foreigners, have to pay a huge cost to do that. And the govt leaves no stones unturned in order to achieve this.

If such drastic policies are implemented in australia or New Zealand, I think it will lead to a collapse of the whole real estate industry here. Do we want something like the above to be implemented here? In Singapore there is no property forum like this as investment in property has basically become the game of the super rich - people who can afford to pay the penalty to buy extra houses.

 

I'd never buy property in NZ.

For starters I can't understand the language lol.