Savanna Hoffman
International students on a visa in New Zealand may be unable to purchase a house, as the country has strict regulations regarding overseas people buying property. Generally, only New Zealand citizens and permanent residents can buy homes without restrictions. However, there are certain exceptions and pathways for international students to explore if they wish to purchase property in New Zealand. For instance, those with a residence class visa who do not meet the 'ordinarily resident' criteria can apply for consent from the Overseas Investment Office (OIO) to buy one home to live in.
| Characteristics | Values |
|---|---|
| Who can buy a house in New Zealand? | New Zealand citizens and permanent residents of New Zealand who meet the requirements to be 'ordinarily resident' can buy property without restrictions. |
| Who cannot buy a house in New Zealand? | Overseas people usually cannot buy a house or land in New Zealand. |
| Who is considered 'ordinarily resident' in New Zealand? | Someone who has been living in New Zealand for at least 12 months and has been physically present in New Zealand for at least 183 days within those 12 months. |
| What is the process for buying a house in New Zealand for overseas people? | If you have a residence class visa but are not yet 'ordinarily resident', you can buy or build one home to live in as long as you get consent from Toitū Te Whenua before you buy. |
| Are there any exceptions to the rule? | Australian and Singaporean citizens and permanent residents may be eligible for exceptions, and specialist legal advice should be sought to clarify eligibility. |
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What You'll Learn
International students on a visa are not ordinarily resident
To be considered an "ordinarily resident" in New Zealand, an individual must satisfy four 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 last 12 months.
- Be a New Zealand tax resident.
International students on a visa typically do not meet these criteria, particularly the requirement to hold a residence class visa. As such, they are not considered ordinarily resident and are subject to the restrictions on overseas persons purchasing property.
It is important to note that there are some exceptions to the rule. For example, Australian and Singaporean citizens or permanent residents may have different eligibility requirements and should seek specialist legal advice to clarify their situation. Additionally, individuals who do not meet the ordinarily resident criteria can apply for exemptions or consent from the OIO to purchase one home to live in. However, these exemptions are limited and granted on a discretionary basis.
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Consent from the New Zealand government is required
If you are an international student, you will likely need consent from the New Zealand government to buy a house in the country. This is because, under the Overseas Investment Act 2005, an "overseas person" who wishes to acquire any "'sensitive asset' in New Zealand must first obtain regulatory approval or consent. Residential land in New Zealand is deemed a "sensitive asset" under the Act.
If you are a New Zealand citizen or permanent resident, you can buy or build a home in New Zealand without needing consent. If you are an Australian or Singaporean citizen or permanent resident, you may be eligible for an exemption, and you should seek specialist legal advice to clarify this.
If you are an international student on a work, student, visitor, or other visa, or have no visa, you are currently unable to purchase land in New Zealand. However, if you have a residence class visa and are ordinarily resident in New Zealand, you can buy or build a home in New Zealand without needing consent. To be ordinarily resident in New Zealand, you must meet four 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 last 12 months
- Be a New Zealand tax resident
If you are a residence class visa holder who does not yet meet the ordinarily resident criteria, you can apply to the Overseas Investment Office (OIO) for consent to buy one home to live in. This consent is valid for one year, and you can apply for pre-approval. This is the most flexible form of consent.
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, but these circumstances are limited, and you should seek legal advice before applying.
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The Overseas Investment Act 2005 governs this area
The Act defines 'ordinarily resident' as having been in New Zealand for at least 12 months and having spent at least 183 days of the past 12 months in the country. Overseas persons with a temporary, limited, interim, or transit visa (such as a student, work, or visitor visa) are subject to the Act and may need to obtain consent from the Toitū Te Whenua before purchasing property.
There are limited circumstances in which an exemption may be granted, and it is recommended that legal advice is sought before applying for an exemption. The rules and requirements under the Act differ depending on the type of land being purchased. For example, the consent requirements for buying residential land differ from those for purchasing more than 5 hectares of rural land.
In addition to the consent requirements under the Overseas Investment Act, foreign buyers may also need to meet certain criteria set by lenders, such as demonstrating a strong credit history, proof of income, and providing a decent-sized deposit. It is advisable for foreign buyers to seek adequate legal counsel when considering purchasing property in New Zealand, as the process can be complex and unfamiliar.
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Australian and Singaporean citizens are exempt
Generally, only New Zealand citizens and permanent residents can buy property in New Zealand without restrictions. However, there are some exceptions to this rule.
Australian and Singaporean citizens can buy property in New Zealand without applying for consent, as long as the property in question has a category of 'residential' or 'lifestyle'. The 'residential' or 'lifestyle' classification refers to land with a traditional living classification, such as houses in cities and towns, or ''lifestyle blocks' in the countryside.
It's important to note that even with this exemption, Australian and Singaporean citizens must still adhere to certain conditions and requirements when purchasing property in New Zealand. These conditions include meeting the criteria to be ''ordinarily resident' in New Zealand. To be considered 'ordinarily resident', an individual must have been living in New Zealand for at least 12 months and have been present in the country for at least 183 days during that period.
Additionally, Australian and Singaporean citizens who are not yet 'ordinarily resident' in New Zealand can still purchase property, but they must obtain consent from Toitū Te Whenua before doing so. They can apply for pre-approval, which is valid for up to a year and provides flexibility in the consent process.
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Ordinarily resident criteria include 12 months in NZ
To be considered an 'ordinarily resident' in New Zealand, you must meet the following four criteria:
- You must have been living in New Zealand for at least the preceding 12 months.
- You must have been present in New Zealand for 183 days or more of those 12 months.
- You must be 'domiciled' in New Zealand or have been living in New Zealand for the 12 months immediately before the transaction.
- You must not have left New Zealand for more than 183 days in total within those 12 months.
This definition of 'ordinarily resident' is distinct from the definition of a 'resident class visa'. A residence class visa is a permanent resident visa or a resident visa granted under the Immigration Act 2009. It does not include temporary visas, such as student, work, or visitor visas.
If you are an international student with a temporary visa, you are considered an 'overseas person' and are usually restricted from buying a house or land in New Zealand. However, there are limited circumstances in which you may be granted an exemption from the requirement to obtain consent. Toitū Te Whenua may grant a discretionary exemption for one-off transactions. It is recommended that you seek legal advice and contact Toitū Te Whenua before applying for an exemption.
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