Calls to let foreigners buy luxury homes
A lobbying push is on from business, and people living in some regions, to persuade the Government to modify its planned laws banning foreigners from buying residential property in New Zealand.
Some, including several multimillionaires, have called for luxury homes, and even whole regions to be exempted from the proposed law.
Labour promised to ban foreigners from buying homes to take pressure off the stretched housing market. It was a plan coupled with a pledge to speed up home-building which had failed to keep up with population growth, especially in Auckland, for several decades.
In submissions to the Finance and Expenditure Select Committee, Queenstown and Northland residents called on MPs not to carve out multimillion-dollar homes, and whole areas like Northland and Queenstown, from its planned Overseas Investment Amendment Bill.
Amy Kirk, of Queenstown, told MPs she feared it could crash the Queenstown economy.
‘‘Fundamentally, restricting all overseas ownership within the Queenstown Lakes District Council will have catastrophic effects on our local economy and our diverse population and will not solve the housing problem.’’
‘‘The Bill groups overseas buyers of properties within the regular housing market with overseas buyers of luxury housing or property. The effects of these purchases on our local economy are very different and need to be further understood and differentiated within the legislation. Put simply, luxury home buyers are not purchasing homes that would otherwise be available for regular working families to purchase.’’
Multi-millionaire Debra Schilling said the country risked losing the benefits of having wealthy people like herself bring their money to boost the economy.
‘‘I immigrated to NZ in 2001 and became a citizen in 2004. I currently own a home in Queenstown valued at more than $5,000,000. I pay taxes on that home. And I pay taxes on my income.
‘‘This bill would have prevented me from becoming a valuable citizen of NZ. I support the economy that employs the people who need affordable housing and I sincerely wish the government would act to help those families acquire their own homes. But preventing me from coming in and buying an expensive home would not have helped those families one bit.’’
While Queenstown residents worry about scaring off the super rich, people in other regions see no point in restricting foreign ownership when they have no housing crisis.
Northlander Chris Reid said in his submission: ‘‘If you are adamant on introducing this xenophobic bill, then please allow for regional variation. That is, if you feel it is needed in Auckland then so be it, but permit Northland to allow overseas buyers as I have seen no evidence to suggest there is an issue negatively impacting on Kiwis in Northland.’’
Some submitters also called on the government end plans to force foreigners investing in building new homes to immediately sell them on completion.
Ellie Porteous from homebuilder GJ Gardner said: ‘‘We sell our homes and apartments off-the-plan prior to commencing construction. Many do not intend to live in their new house, however rent them out to local New Zealanders for a return with a long-term investment outlook.
‘‘If our foreign investors are forced to on-sell their properties upon or before completion, they will simply not purchase at all.
‘‘The result of this will be that less houses will be built.’’