Important News for Overseas Investors in NZ Property

September 28th, 2010

In a Press Release from The Beehive yesterday, Land Information NZ (LINZ) report;

Minister of Finance Announces New Overseas Investment Rules

The Minister of Finance has announced changes to the Overseas Investment Regulations,……

So across to the Beehive website we go….and we find out that public opinion has had an effect in as much as…

“In recent months, ministers have carefully reviewed the current framework for considering overseas investment applications – particularly in light of issues with respect to farmland ownership,” Mr English says.

Bill English - NZ Government Finance Minster

Bill English - NZ Government Finance Minster

Plenty of column centimetres has been spent over recent months documenting overseas investment in NZ farmland, and I’m sure this has had some effect.

The news tonight reports that;

The Government last year made several changes to simplify overseas investment rules, cut red tape and speed up processing times for applications.

and highlights that over the past 12 months, applications processing time-frames have been reduced from 63 days down to an average of 38 days.

As an aside, the press release states…….

These changes are expected to take effect from December. They will apply to applications received after this date and will not apply retrospectively.

And in the accompanying FAQ, question 6 is, regarding current times & sentiment, quite topical……

6. What do the changes mean for overseas investment applications already submitted?

Applications already submitted will be assessed under the current regulations.  The new regulations will be applied to those investment applications that are made after the new regulations come into force.

1-05-2009 9-19-33 PM

Surely this will be in print media Thursday and syndicated around the world at the same time….so it makes sense if you have overseas buyers that like real estate in popular Nelson, or other popular areas around NZ like Tauranga, Hawkes Bay, Northland, the Coromandel and Queenstown for example, that you are armed with the info when you get that call or email over the next few days……because rest assured the “media” will probably not paint it in a positive light.

To also learn more about two brand new contributors, what is termed the new “economic interests” factor as well as the new “mitigating” factor, head on over to the page here to familiarize yourself with the details…

Press Release – Bill English ~ Finance Minister