International Students' Nz House Buying Guide

International students and other foreign buyers looking to purchase property in New Zealand must navigate a set of specific rules and regulations, which are designed to regulate foreign ownership and protect the interests of local residents. Generally, only New Zealand residents and citizens can buy homes in New Zealand without restrictions. However, there are three categories of eligibility to buy a house or land to build on in New Zealand.

Can international students buy a house in New Zealand?

International students need consent to buy a house in New Zealand

International students on a visa in New Zealand are generally prohibited from buying existing residential homes unless they meet certain criteria. However, they can buy new properties in specific housing developments.

To be considered an "ordinarily resident" in New Zealand, a person must satisfy all four of the following criteria:

• Currently hold a New Zealand residence class visa
• Have been living in New Zealand for at least 12 months
• Have been physically present in New Zealand for at least 183 days within those 12 months
• Be a New Zealand tax resident

If an international student does not meet the above criteria, they can apply to the Overseas Investment Office (OIO) for consent to buy one home to live in. The OIO is part of Toitū Te Whenua (Land Information New Zealand), which regulates overseas investment in New Zealand's land, significant business assets, and the country's fishing quota. The OIO assesses applications for purchases in sensitive areas, such as land near borders or coastal regions, and determines whether the investment benefits New Zealand.

It is important to note that owning property in New Zealand does not directly entitle the owner to a visa or residency. If an international student wishes to live in New Zealand, they must apply for a visa through the standard immigration process. There are Investor Visa categories that require substantial financial investment in the country, which can include real estate, and may lead to residency if certain conditions are met.

New Zealand's definition of ordinarily resident

To be considered 'ordinarily resident' in New Zealand, a person must meet the following four criteria:

• Hold a New Zealand residence class visa: This indicates that the individual is a permanent resident or has a resident visa granted under the Immigration Act 2009. It does not include temporary visas, such as student, work, or visitor visas.
• Have been living in New Zealand for at least the preceding 12 months: This requirement ensures that the individual has established a degree of permanence in their stay, indicating an intention to remain in the country.
• Have been physically present in New Zealand for at least 183 days within the last 12 months: This criterion specifies the minimum amount of time spent in the country, ensuring that the individual has a substantial presence in New Zealand.
• Be a New Zealand tax resident: Paying taxes in New Zealand demonstrates a level of commitment and contribution to the country.

It is important to note that time spent in New Zealand on a work or student visa can count towards the time requirement, as long as a residence class visa is held at the time of the property purchase. Additionally, if an individual is married, in a civil union, or in a de facto relationship, only one person needs to meet these criteria to buy a relationship property in New Zealand.

According to Lord Denning in Fox v Stirk & Bristol Electoral Registration Officer ([1970] 2 QB 463; [1970] 3 All ER 7), being ordinarily resident implies "a considerable degree of permanence" in one's stay. Similarly, Lord Widgery stated that "some assumption of permanence, some degree of continuity, some expectation of continuity, is a vital factor which turns simple occupation into residence."

In summary, being 'ordinarily resident' in New Zealand signifies that an individual has established a permanent and long-term presence in the country, intending to make it their home, and is therefore eligible for certain rights and exemptions, such as buying property without restrictions.

International students can invest in new housing developments

International students on a visa in New Zealand are generally prohibited from buying existing residential homes. However, they can invest in new housing developments and certain types of commercial real estate. This means that if you're an international student looking to buy a house to live in, you will likely need to focus on newly built properties or be part of a new development.

There are three categories of eligibility to buy a house or land to build on in New Zealand:

• Some people can buy property without restrictions.
• Some people can buy certain types of property if they have consent.
• Some people cannot buy property.

Immigration New Zealand has a tool to help you check if you can buy property in New Zealand. To be considered 'ordinarily resident' in New Zealand, a person must satisfy all four of the following criteria:

• Currently hold a New Zealand residence class visa.
• Have been living in New Zealand for at least 12 months.
• Have been physically present in New Zealand for at least 183 days within the past 12 months.
• Be a New Zealand tax resident.

Time spent in the country on a student visa can count towards the time in New Zealand requirement, provided a residence class visa is held at the time of the property purchase. If you are not eligible to buy property, you may apply for an exemption from the requirement to obtain consent. Toitū Te Whenua may grant you a discretionary exemption for one-off transactions, although there are limited circumstances where this is possible.

If you are an international student looking to invest in new housing developments, you can do so by purchasing land with the intent to build new housing. However, buying land in sensitive areas, like near borders, coastal regions, or areas with significant conservation values, often requires special approval from the Overseas Investment Office (OIO). This process assesses factors like the benefits to New Zealand and your connection to the country.

Additionally, it is important to be aware of the costs and regulations associated with buying property in New Zealand as an international student. Typical closing costs and fees include legal fees, a property inspection report, a valuation report, and possibly a real estate agent's fee if you're selling a property. There may also be additional costs for complying with both your home country's and New Zealand's banking and tax laws.

International students can buy a hotel room in New Zealand

International students on a student visa in New Zealand are generally prohibited from buying existing residential homes and land. However, there is an exception for hotel rooms. International students can buy a hotel room in New Zealand, but there are some important considerations to keep in mind.

Firstly, it is crucial to understand the definition of an "ordinarily resident". According to New Zealand law, an "ordinarily resident" is someone who has been living in the country for at least 12 months and has been physically present for at least 183 days within those 12 months. Time spent in New Zealand on a student visa can count towards the time requirement, provided that the individual holds a residence class visa at the time of the property purchase.

If an international student meets the criteria to be considered "ordinarily resident", they may be able to purchase a hotel room without the need for any special consent or approval. However, if they do not meet these requirements, they may still be able to apply for consent from the Overseas Investment Office (OIO) to purchase a hotel room. The OIO assesses applications for purchases in sensitive areas, which include land near borders, coastal regions, military bases, and areas of cultural or environmental significance.

It is worth noting that the process of obtaining consent from the OIO can be rigorous and involves assessing factors such as the benefits of the investment to New Zealand and the individual's connection to the country. Additionally, there may be substantial costs associated with the OIO application process, and the property must meet certain criteria to be considered beneficial to the country.

While owning property in New Zealand does not directly entitle the owner to a visa or residency, there are investor visa categories that international students can explore if they intend to make substantial financial investments in the country, including real estate. These visas require significant financial investments over several years, and fulfilling their requirements can lead to conditional residency in New Zealand.

International students can buy an apartment in New Zealand

• Hold a New Zealand residence class visa.
• Have been living in New Zealand for at least 12 months.
• Have been physically present in New Zealand for at least 183 days within the last 12 months.
• Be a New Zealand tax resident.

Time spent in New Zealand on a student visa can count towards the time-based criteria, but a residence class visa must be held at the time of the property purchase. If an international student does not meet the "ordinarily resident" criteria, they may still be able to buy an apartment in New Zealand with certain restrictions.

New Zealand has strict regulations around foreign property ownership to address concerns about housing affordability and land conservation. As a foreign student, you would typically be prohibited from buying existing residential homes. However, you may be able to invest in new housing developments and certain types of commercial real estate. This means that if you're looking to buy an apartment to live in, you would likely need to focus on newly built properties or be part of a new development.

Additionally, there are specific areas in New Zealand where buying property might be more restricted or come with additional requirements. These include sensitive areas such as military bases, coastlines, islands, or land near water bodies. Buying property in these sensitive areas often requires special approval from the Overseas Investment Office (OIO), which assesses the benefits of the investment to New Zealand and your connection to the country.

It's important to note that the process of buying property in New Zealand as an international student can be complex and may involve substantial costs associated with the OIO application process. Seeking specialist legal advice is recommended to fully understand your options and ensure compliance with all relevant laws and regulations.

Frequently asked questions