Welcome to our latest newsletter,
As many of you may know, the Overseas Investment Amendment Bill received Royal Assent in August and is set to come into effect on 22 October 2018.
The new legislation will have a significant effect on many aspects of overseas investment although the most relevant is the impact it will have on the restrictions of overseas investment in residential land.
All New Zealand and Australian citizens will be free to purchase residential land as per usual. People who hold permanent resident visas or people who are Australian permanent residents will not require consent to purchase residential land in New Zealand provided they have been residing in New Zealand for the last 12 months and have spent at least 183 days in the last 12 months in the country. This is in relation to buying residential land to either live on or develop.
Those who hold resident visas or permanent resident visas that do not satisfy the test above can only purchase a house if they obtain consent through the commitment to reside in New Zealand Test. These people can also purchase residential land for development provided they satisfy further new builds and benefits test.
All other people cannot purchase a house to live in although can purchase residential land for development provided they also satisfy further new builds and benefits test.
The link below provides a detailed diagram outlining the requirements outlined above:
The new legislation provides new opportunities for overseas developers who may be able to beneficially develop land that others within New Zealand do not wish to. Despite this, these parties will not be able to live in these properties upon completion.
The effect of the changes may not immediately be evident come 22 October 2018 although the months following may provide some insight as to the long-term changes the new legislation will affect.
If you have any legal matters that we can help with please do not hesitate to contact us to organise a time or to just discuss your matter over the phone.
DAVENPORTS WEST LAWYERS LIMITED
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