New Zealand tightens rules for foreign land buyers
July 21, 2004Page Tools
Email to a friend Printer format
Auckland: Australians wanting to buy a piece of prime New Zealand real estate will face tougher hurdles in future if the land is deemed to have special heritage or environmental value.But the New Zealand government has made it easier for foreigners wanting to invest big bucks in Kiwi companies by doubling the threshold at which transactions have to be scrutinised.
Proposed changes announced yesterday mean that foreigners wanting to buy “special” land in New Zealand must get plans approved detailing how they will manage any historic, heritage, conservation or public access issues.
They will be monitored every one or two years to make sure they stick to the plans.
The tougher rules apply to foreign buyers of land of special historic, heritage or environmental value, Finance Minister Michael Cullen said.
Overseas buyers have been snapping up some of New Zealand’s most prized land in recent years, with Canadian singer Shania Twain recently applying to buy a farm on the South Island.
Australians have also been actively buying New Zealand property in recent months.
Ordinary Aussies have primarily been buying investment properties in two markets – apartments and small towns.
New Zealand’s strict overseas investment rules recently thwarted an attempt by 2UE talkback host John Laws to buy a prime Queenstown block of land for $NZ1.5 million ($A1.35 million), it was reported last month.
But New South Wales Premier Bob Carr did not need Overseas Investment Commission (OIC) approval to buy his Queenstown property a year ago, as it didn’t adjoin or include “sensitive” land.
The new measures stem from a review of the Overseas Investment Act last year following the controversial $NZ4 million sale of Young Nick’s Head Station on the North Island’s east coast to New York financier John Griffin. That sale prompted protests by indigenous Maori tribes.
Mr Cullen said the Crown would have a new right of first refusal over foreshore and seabed land where this would otherwise be sold into foreign ownership, while the OIC would be abolished and its regulatory functions performed by a new unit within Land Information New Zealand.
“We value the benefits foreign investors bring in terms of access to markets and to new technology and ideas,” Mr Cullen said.
“But we also need to ensure that New Zealand’s unique cultural and natural heritage is protected.”
The threshold for screening non-land business asset sales, where the proposed acquisition entailed a shareholding or 25 per cent or more, would be raised from $NZ50 million to $NZ100 million.
New Zealand First leader Winston Peters said the change meant that New Zealand was on sale to the highest bidder.
“The government is actually doing its best to facilitate and encourage foreign takeover by further weakening controls to the detriment of New Zealanders,” Mr Peters said.
“The end result will be a further annual drain of New Zealand-made profits overseas.”
The Green Party has started a petition opposing all land sales to non-resident foreigners who “simply want to make money out of us or treat us as a rich man’s playground,” co-leader Rod Donald said.
We are all made from Stars
I’ve read the article, and what I can’t get is how you read it and conclude “Kiwis don’t like Aussies”.
This is meant to LEAD the reader to LOOK for paragraphs which support your BIASED headline. OK, putting that to one side, the two salient points are that it’s going to be harder for Aussies to buy properties with “special heritage or environmental value.” Which does not have anything to do with who likes who.
Then again, perhaps you missed this paragraph…. “But the New Zealand government has made it easier for foreigners wanting to invest big bucks in Kiwi companies by doubling the threshold at which transactions have to be scrutinised.”
A lot of people when reading something that doesn’t fit their preconcieved bias just actually MISS completely the bits that don’t fit their paradigm.
Just really interesting how you interpreted this article, more interesting than the article itself!!
cheers-
Mini“special heritage or environmental value.
“joy to the world
Your spot on Mini, it pays to read the artical, but I really just wanted the attention……….
We are all made from Stars
Hi salubrious
your not far off the mark many NZlander don’t like the fact that a lot of foreigners are buying up in NZ. i can understand their sentiments. But then again we are bringing in millions of dollars for them to reinvest if they desire.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi all
hey i don’t want to give the wrong impression Kiwi’s have a love/ hate relationship with Australia. there are so many people in NZ who have a family member living in OZ so there really is a very close connection to australia. Most Kiwi’s could name the Australain cricket team how many Ausies could name 3 NZ cricketers?
cheers
westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Originally posted by westan:Hi all
hey i don’t want to give the wrong impression Kiwi’s have a love/ hate relationship with Australia. there are so many people in NZ who have a family member living in OZ so there really is a very close connection to australia. Most Kiwi’s could name the Australain cricket team how many Ausies could name 3 NZ cricketers?
cheers
westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Ummm Richard Hadlee, Lance Cairns , now Im stuck
Well said Mini,Westan[biggrin]
Add Martin Crowe
Cheers
“When you can walk on water…take the boat”
“Your spot on Mini, it pays to read the artical, but I really just wanted the attention……….
“salubrious, *giggle*, touche…..
Well, you did get my attention!!!
Then again I always look at threads with NZ in the topic as that’s my area of interest/expertise.!cheers-
Minijoy to the world
These “rules” appear more politically driven than common sense – the Labour Government attempting to gather support from those in the wider New Zealand community [in the build-up to the election] who do not understand the importance of foreign investment – capitalizing on the “New Zealand is being sold-out” theme.
“doubling the threshold at which companies are scrutinised” is a weak attempt to offset the business communities concerns – typical Michael Cullen.
It will take a lot more than this “incentive” to attract much needed foreign investment into New Zealand’s business sector – corporate tax incentives should have been implemented years ago as a first step.
If the rules re: acquiring property become too stringent [which is now evident], direct foreign investment in New Zealand could rapidly decline to the point where the negative impact on the property market, and greater economy, will adversely affect every New Zealander. This can happen very quickly especially when the Australian market rebounds.
Foreigners may buy the land, but they cannot take it with them.
Foreign investment is a catalyst for building wealth in the greater community – when foreign funds are invested in property, the market and economy [and therefore community] benefits.
Eventually the property is sold, by which time more people within the community have benefited financially and can afford to purchase the property.
In terms of protecting land from development, it does not matter where the land owner originates – New Zealander or foreigner. Constraints should focus on design and zoning controls rather than “ownership”.
Such controls have been overlooked resulting in a mix-match of predominently mediocre development in New Zealand. Queenstown being a prime example.
Companies are easily relocated off-shore resulting in lost jobs.
Less scrutiny by a clandestine government authority does not compare with financial incentives, i.e. tax breaks, such as those offered by Australia and the United States.
Sustaining a competitive position in the global marketplace – and retaining successful companies, is reliant upon clearer financial and economic incentives – which the New Zealand government has still not addressed.
— Michael
Sustaining a competitive position in the global marketplace – and retaining successful companies, is reliant upon clearer financial and economic incentives – which the New Zealand government has still not addressed.Spot on Michael, but one thing about Helen Clark the Prime Minister, she will never be late for a Rugby Test – especially when it’s the Bledisloe Cup.
I personally would prefer her to be at the Rugby than messing around with economic policy
Cheers
JeffKiwi’s should really stick to sheep and let us Aussies take all their pos Cashflow properties.
Hi all
Yorker, you are a very naughty boy.
I must admitt i really can’t understand a lot of the decisions made in NZ. The constant desire to lift interest rates leaves me scraching my head. Sure the NZ economy is moving along nicely but why try to destroy it by lifting rates , which will hurt business, raise the dollar leading less competative exporters. I much rather australia’s approach to the economy. Now the Government’s decision to slow down immigration, this too makes me wonder, what are these guys thinking ???
the level of competency does scare me sometimes. Maybe a change of Government is needed???regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Actually, Australia has an even more restrictive policy. This is enforced by the FIRB (Foreign Investment Review Board).
Foreigners need to be granted permission by the Aussie Govt in order to buy residential property. This permission is mostly granted for brand new buildings that no one has lived in before. Most applications for residential properties that are not new is rejected.
So, what NZ is doing is not really that unreasonable at all.
Hi Guys
[baaa]New Zealanders HAVE never liked Aussies ever since that clown Chappell told the other clown Chappell to bowl the last ball in a one dayer underarm so it couldn’t be hit for six for NZ to win.[baaa]
How under hand can you get.
[biggrin]Even the worms had to duck for cover.[biggrin]
Regards
Originally posted by muppet:Hi Guys
[baaa]New Zealanders HAVE never liked Aussies ever since that clown Chappell told the other clown Chappell to bowl the last ball in a one dayer underarm so it couldn’t be hit for six for NZ to win.[baaa]
How under hand can you get.
Dont you mean “never liked the Chappell’s”?
[biggrin]Even the worms had to duck for cover.[biggrin]
Regards
We are all made from Stars
Originally posted by muppet:Hi Guys
[baaa]New Zealanders HAVE never liked Aussies ever since that clown Chappell told the other clown Chappell to bowl the last ball in a one dayer underarm so it couldn’t be hit for six for NZ to win.[baaa]
How under hand can you get.
Dont you mean “never liked the Chappell’s”?
[biggrin]Even the worms had to duck for cover.[biggrin]
Regards
We are all made from Stars
Originally posted by Michael R:These “rules” appear more politically driven than common sense – the Labour Government attempting to gather support from those in the wider New Zealand community [in the build-up to the election] who do not understand the importance of foreign investment – capitalizing on the “New Zealand is being sold-out” theme.
“doubling the threshold at which companies are scrutinised” is a weak attempt to offset the business communities concerns – typical Michael Cullen.
It will take a lot more than this “incentive” to attract much needed foreign investment into New Zealand’s business sector – corporate tax incentives should have been implemented years ago as a first step.
If the rules re: acquiring property become too stringent [which is now evident], direct foreign investment in New Zealand could rapidly decline to the point where the negative impact on the property market, and greater economy, will adversely affect every New Zealander. This can happen very quickly especially when the Australian market rebounds.
Foreigners may buy the land, but they cannot take it with them.
Foreign investment is a catalyst for building wealth in the greater community – when foreign funds are invested in property, the market and economy [and therefore community] benefits.
Eventually the property is sold, by which time more people within the community have benefited financially and can afford to purchase the property.
In terms of protecting land from development, it does not matter where the land owner originates – New Zealander or foreigner. Constraints should focus on design and zoning controls rather than “ownership”.
Such controls have been overlooked resulting in a mix-match of predominently mediocre development in New Zealand. Queenstown being a prime example.
Companies are easily relocated off-shore resulting in lost jobs.
Less scrutiny by a clandestine government authority does not compare with financial incentives, i.e. tax breaks, such as those offered by Australia and the United States.
Sustaining a competitive position in the global marketplace – and retaining successful companies, is reliant upon clearer financial and economic incentives – which the New Zealand government has still not addressed.
— Michael
Its always easier for lefty’s to blame someone else for thier shortcommings.
Hey Michael R,
Another legendary post from you with a lot more political understanding than I have or care to have. Thanks for that.
AFAIK there are no restrictions in place for Aussies to buy the kind of properties I have bought, which is the same sort that we source for our bird-dog clients – ‘second hand’ family homes and duplexes, fourplexes, etc. They don’t fall within the criteria mentioned and so it’s all good!
cheers-
Minijoy to the world
People that live in glass houses should not throw stones – one should look at what is going on in their own back yard – what about the poms v’s the aussies ……….. its not up to others to change their attitudes its up to us to change thats makes us rise above the crap racial debate – lets talk about the deal its more inportant in my view …[baaa]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
