The Overseas Investment Amendment Bill has now been passed in Parliament. New laws are likely to come into force as early as next month. In this article we wanted to address two frequently asked questions about the bill. Read on to discover how it will affect Marlborough property owners who might be selling, and those hoping to buy.
Firstly, what Marlborough property does the Overseas Investment Amendment Bill apply to?
The policy applies to suburban residential sections, and lifestyle blocks. It’s worth noting that the policy applies whether a dwelling is already on the land or not. It also applies to new build homes. Generally, the policy will also cover holiday homes and baches. Although, perhaps not as common in Marlborough the policy also applies to apartments in apartment buildings. As a general rule of thumb, if land is classified as residential or lifestyle for District Valuation Roll purposes, policies adopted under the Overseas Investment Amendment Bill will apply to it.
Secondly, who does the Overseas Investment Amendment Bill apply to?
The policy applies to all overseas persons, with some exemptions. Those are:
- New Zealand citizens who reside overseas
- New Zealand permanent residents and other residence class visa holders
- Australian and Singapore citizens and permanent residents
- Other persons who have been screened by the Overseas Investment Office, and meet specific criteria, including the commitment to reside in New Zealand consent pathway
Additionally, New Zealand citizens and those that meet the definition of ‘ordinarily resident in New Zealand’ that are in a qualifying relationship with an overseas person can purchase residential land without the need for their partner to obtain consent.
The Overseas Investment Amendment Bill is complex, and we do advise all Bayleys Marlborough clients to consult with their legal representatives, should they have any questions. You can also read the bill here.