New Zealand bans most foreigners from buying homes

Trade Minister David Parker announced a relaxing of the foreign buyers ban in June

A curb on foreign purchases of New Zealand property has passed into law, with the Government adamant the changes will help Kiwis get back on the property ladder.

Almost all foreigners have been banned from buying most Kiwi homes in a bid to crack down on overseas speculators.

The Parliament approved the new restriction Wednesday, fulfilling a promise that helped Prime Minister Jacinda Ardern's Labour party win power past year after campaigning against inequality and homelessness.

"This is a significant milestone and demonstrates this government's commitment to making the dream of home ownership a reality for more New Zealanders", Associate Finance Minister David Parker said.

Figures released by the Real Estate Institute of New Zealand on Wednesday showed median house prices had slipped 1.8 percent to NZ$550,000 ($360,140) in July from the previous month, although they were still 6.2 percent higher than the same time the previous year.

The New Zealand government wants to cool red-hot house prices in cities like Auckland.

The majority of overseas buyers were from China and neighboring Australia, according to Statistics New Zealand. "We believe it's the birthright of New Zealanders to buy homes in New Zealand", he added.

Lionel Messi leaves Argentina national team temporarily
Tevez played alongside five-time Ballon d'Or victor Messi for Argentina as the 34-year-old earned 76 caps on the global stage. Messi´s next chance to win his first major worldwide title will be the 2019 Copa America in Brazil.

Celtic crash out of Champions League after losing to AEK Athens
Asked if he felt frustrated on a night where defensive inadequacies proved costly, the Northern Irishman said: "Yes, of course". The Scottish champions would be back in the market for a centre-back if the move goes through, having lost a key player.

22 dead in Italy after motorway bridge collapses
At least 30 cars and three heavy vehicles were on the portion of the bridge when it crumbled, Civil Protection authorities said. Salvini also said he wanted the "names and surnames of those to blame because a tragedy like this in 2018 is not acceptable".

Former Prime Minister John Key, who opposes the ban, said wealthy investors added value to New Zealand through their worldwide connections and the nation needed to be open for business in the global marketplace.

Buyers of New Zealand property include billionaire investor Peter Thiel. The Reserve Bank said last week it can't rule out cutting the official cash rate to a new record low.

Overseas investors will still be able to buy new housing, particularly apartments, rentals and homes available to purchase under rent-to-own or shared-equity arrangements.

National housing spokesperson Judith Collins said the legislation was nothing more than an attempt to justify some of the government's policies and decision.

"We simply do not know how it will affect the market", Dominick Stephens, chief economist at the New Zealand division of banking group Westpac, said in a note to clients Wednesday.

"We are determined to make it easier for Kiwis to buy their first home, so we are stopping foreign speculators buying houses and driving up prices", Ardern said when she announced the policy a year ago. Prices in the country have been falling since the end of past year.

The government has said the ban would not apply to Australians and has been negotiating with Singapore, whose free trade agreement with New Zealand allows foreign ownership, on whether to grant an exemption.

Related:

Comments

Latest news

Priests Produced Child Pornography on Church Property, Pennsylvania Grand Jury Report States
For decades", Shapiro said. "For many of us, those earlier stories (of priest sex abuse) happened someplace else, someplace away". The grand jury scrutinized abuse allegations in dioceses that minister to more than half the state's 3.2 million Catholics.

Jordan Clarkson to Filipinos: See you all very soon
Indonesia Asian Games 2018 Organizing Committee (INASGOC) and Olympic Council of Asia (OCA) said yes for his reentry to the team. Clarkson's services, however, will be available in the Philippines' second game against perennial rivals China on the August 21.

Tottenham Hotspur apologise offer season ticket credit over stadium delay
The Premier League club have been forced to postpone the scheduled opening of the rebuilt area next month due to safety issues. Spurs will not move into their new stadium until mid-October at the earliest, owing to "issues with critical safety systems".

Manikarnika first look : Kangana as fiery Jhansi
This is a biopic based on the life of Rani Laxmibai of Jhansi and Kangana looks like a warrior in the first look poster. Kangana's character screams in the battlefield and her child is seen, tied to her back.

Akshay Kumar taught me to be a producer's actor: Mouni Roy
When asked about her first reaction on being offered the film, Mouni said, 'I was excited, and nervous. She explained not just the main characters, but also every small character in detail.

Nebraska Executes Inmate With Drug Cocktail Including Fentanyl
A combined total of less than a dozen death penalty supporters and opponents gathered in the rain while the execution took place. Moore fatally shot Maynard Helgeland by himself five days later, saying he wanted to prove he could take a man's life by himself.

Samsung may suspend operations at China mobile phone plant
It's no secret that Samsung has been facing tough competition in the Chinese smartphone market. While reducing production in China, Samsung is beefing up operations in other key markets.

Here's who Neill Blomkamp wants to play RoboCop in his sequel
When a fan started talking about the casting on Twitter, Blomkamp unexpectedly chipped in and gave a two-word, fairly definitive sounding answer.

Paul Manafort's attorneys rest without presenting evidence, witnesses
The defense team for Paul Manafort , shown here walking into federal court on Tuesday, rested without presenting any witnesses. Addressing the court for the first time during his trial, Manafort stood up and told Judge T.S.

No major vote problems in Wisconsin for primary
In all, four states including Vermont and CT will host elections on Tuesday as the 2018 primary season nears its final chapter. Democrats appear particularly motivated in Wisconsin, where eight candidates want the chance to take on Republican Gov.

Channel 5 announces Celebrity Big Brother theme
There has been no confirmation on the release date of Big Brother 2018; however, we have a rough guess, and it might just be true. So before summer 2018 installment of Celebrity Big Brother , we will be sharing everything we know about the show, so far.

Serie A club Roma beat Arsenal to the signing of Steven Nzonzi
Roma's sporting director Monchi raided his former club for a player he signed for them from Stoke City in 2015. N'Zonzi did not feature in Sevilla's defeat to Barcelona in the Spanish Supercup on Sunday.

Retail inflation cools to 4.17% in July; pulses, vegetable prices eases
He said that this category, coupled with the transport and communication group, is expected to exert pressure on retail inflation. Now the big question is what will be happen when the Monetary Policy Committee (MPC) meets in October.

Youngest American Woman To Receive Full Face Transplant, One Year Post-Op
She hopes to speak to teenagers about suicide prevention, echoing what she told CNN: "Life is precious, and life is lovely ". Stubblefield's brother told National Geographic that he found his sister upstairs, "and her face was gone".

Lyric McHenry Dead - Reality Star Dies Hours After Celebrating 26th Birthday
McHenry first posted a boomerang of a chessboard at The Frederick Hotel in Tribeca, before she moved to the Soho Grand Hotel. She went on to work for Complex Networks, and later as a freelance writer and producer.

Other news