New Zealand houses. (Photo: AFP)

28 October 2017

Oz Kiwi opinion

There are concerns that the New Zealand Government’s new housing policy would affect Australian citizens living in New Zealand. Until a Bill is introduced into the New Zealand Parliament we won’t know exactly who is impacted by the proposal to restrict property sales.

The housing policies of NZ Labour, NZ First and NZ Greens indicate that New Zealand citizens and permanent residents in NZ would be able to buy property, and foreign investors would only be able to buy new properties.

Australian citizens resident in New Zealand are considered permanent residents.

Crack down on speculators

Ban foreign speculators from buying existing homes

Labour will ban foreign speculators from buying existing New Zealand homes. This will remove from the market foreign speculators who are pushing prices out of reach of first home buyers.

Tax property speculators who flick houses within five years

Labour will extend the bright line test from the current two years to five years. This will target speculators who buy houses with the aim of making a quick capital gain.

Create a level playing field for first home buyers

Speculators will no longer be able to use tax losses on their rental properties to offset their tax on other income which gives them an unfair advantage over people looking to buy their first home.

[Read Labour’s housing policy].

Places to call home

Ensure that only New Zealand citizens and Permanent Residents can buy freehold land.

Recognise that there is a housing crisis by establishing a new state agency to acquire and develop land for residential development:

Provide first home buyers with affordable residential sections under long term low interest sale and purchase agreements of up to 25 years.

No good reason to allow non-resident foreign buyers

Metiria Turei on 2 August 2016

“The Government can choose to put first-home buyers before non-resident foreign investors, but instead it’s choosing to pretend this isn’t an issue.

“To buy a house in New Zealand, people should have to be citizens or permanent residents.

“Restricting overseas buyers is one of the tools we need to use to make housing more affordable, along with a capital gains tax (excluding the family home) and a big, government-led house-building programme,” Mrs Turei said.

[Read the Greens non-resident foreign buyers policy].