Head of Content
Mortgage Advisor & Director
Why choose New Zealand?
New Zealand is a dream location for many Brits looking to relocate. With no language barrier, and even driving on the same side of the road, it has elements of familiarity alongside its slower paced way of life, lush mountain scenery and beautiful beaches. Home to four national parks, it boasts almost every kind of landscape you can imagine, from forests, to mountains and glaciers, to sandy shores, waterfalls and volcanoes.
Can anyone buy in New Zealand?
In the past, there were no limitations on non NZ residents purchasing property. However, in 2018, legislation was put in motion to change this, as the country became more and more popular for people to purchase second homes and locals were priced out of the market. Now, you need citizen or permanent resident status to be able to purchase existing property within New Zealand.
There are a few exemptions to this rule. Non-residents can invest in property such as hotels, apartment blocks, or new-build homes. You can even buy land to develop… but you need to sell once the property is complete.
Overseas buyers who wish to purchase existing property need to file a request with the Overseas Investment Office. This is a relatively new process, and it’s not yet evident how amenable this office will be to people’s appeals.
How can I become a Permanent Resident?
You can apply for permanent resident status if you have lived in the country with a valid visa for at least two years. You also need to show commitment to residing in New Zealand. This might include keeping the money you earn within New Zealand, rather than transferring it to overseas bank accounts.
As well as two years’ of eligible visas, you need to be classed as “ordinarily residing” in New Zealand to be eligible to buy property. This is classed as someone who has resided in the country for at least 184 days within the last 12 months.
My family member is from New Zealand, or is a permanent resident. Can I buy property?
Spouses of New Zealand citizens, or of people with permanent residency are eligible to buy property.
Parents of NZ citizens and permanent residents aren’t automatically eligible. However, it has been indicated that if you can demonstrate an emigration plan, permission may be granted for those who wish to retire near their family.
What if I find a way around the rules? No one appears to be checking up on me?
If individuals attempt to proceed with a purchase without permission and without meeting the requirements, you will be subject to a fine. This can be up to $10,000, depending on the value of the home.
How does the mortgage market compare?
If you find yourself able to buy property - congratulations! The basics of New Zealand’s mortgage market are not too dissimilar to the UK, but a little tougher. You’ll need a minimum 30% deposit, and you’ll only be able to stretch your mortgage over 30 years at most. This can mean both more cash up front and higher monthly payments compared to the UK.
At the time of writing, you can expect around two New Zealand dollars per pound sterling, making rough calculations in your head fairly manageable.
Buying overseas can be life-changing, but daunting. Get in touch with one of our brokers and we’ll be able to steer you down the right path.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
