The New Zealand government is deliberating potential changes to its strict foreign home buyer restrictions, Finance Minister Nicola Willis announced.
This move is raising questions about property insurance implications for international investors.
"Those are issues that we are discussing as a government," Willis told Bloomberg Television in Wellington. "It may be that there are changes on that in the future, but we've not made that decision at this point."
Currently, New Zealand maintains one of the world's most restrictive policies on foreign property ownership, limiting residential property purchases to citizens, tax residents, and nationals from Australia and Singapore under existing trade agreements.
While foreign buyers can obtain property insurance in New Zealand, the potential policy shift brings attention to broader property considerations.
Home insurance, though not legally mandated, operates on a "sum insured" basis, with insurers only covering up to the specified maximum value. For apartment purchases, building insurance typically comes included in body corporate fees, but contents insurance remains separate.
The National Party's campaign to broaden foreign buying rights faced opposition from coalition partner New Zealand First. However, New Zealand First leader Winston Peters has suggested flexibility for significant investors who could create jobs and boost exports.
The discussion coincides with the government's upgrade of its golden visa program to attract wealthy migrants. Legal experts note that the current foreign buyer ban remains a significant obstacle for potential investors, despite insurance availability.
Foreign buyers must navigate additional requirements, including consent applications for certain property types or locations. Industry experts recommend title searches to confirm legal ownership and property inspections to identify structural issues or other concerns before purchase completion.
"We understand the need for foreign investment to fund economic growth," Willis noted, though she emphasised that no immediate policy changes have been confirmed.
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