Update on the Overseas Investment Amendment Bill – not a done deal yet for foreign buyers | Pitt & Moore, Lawyers in Nelson
Update on the Overseas Investment Amendment Bill – not a done deal yet for foreign buyers
The controversial Overseas Investment Amendment Bill that encapsulated the Government’s election commitment on banning foreign buyers purchasing homes in New Zealand has been the subject of a review by the Parliamentary Finance and Expenditure Select Committee.
The Committee is due to report this week (by 21 June 2018). The Bill was introduced into Parliament on 14 December last year. A total of 302 submissions have been received by the Committee, many calling for changes to the Bill.
The Property Institute of New Zealand in their submission argues that the Bill in its current form could lead to a contraction in housing availability as investors shy away from increased risk, which would in turn exacerbate the shortage of quality rental housing.
A submission by The NZ Institute of Economic Research and others highlight the risk of contagion to other types of investment. “It’s widely felt that the amendment sends an unfriendly signal to foreign investors who have previously seen New Zealand as welcoming of overseas investors, and when we are a country that is far away and small”.
It will be interesting to see what recommendations the Committee makes to the Government.
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We understand the needs of foreign investors. We can help with all aspects of your New Zealand investment, including purchasing property, obtaining Overseas Investment Office consent, forming a company and assisting you to purchase shares in a company or its business and assets.
Contact our Overseas Investment Team today to discuss how we can assist you.