Kerre Woodham: What did it cost to get the foreign buyers clarification?

You might remember, those of you who were listening around about a month ago when the Prime Minister was in the studio, taking your calls. Steve rang in and gave the PM a bit of ginger over the economy. He said, "I know you're between a rock and a hard place, Prime Minister, with the economy. Not really any more levers you can pull to do much, and you guys are just treading water. It's a PR machine to gloss over while you pray that somehow the economy's going to pick up."  

He said to the Prime Minister, "There's one lever you have yet to pull, and I think you know that for the short-term sugar that will bring something into this economy, that's a foreign buyers' ban. If that comes off, you know that will bring a bit of money in, and that will have a proper, tangible effect rather than just being all talk, talk." But of course, that's not going to happen with Winston.  

CL: On foreign buyers, that is a conversation that Winston and I are having, so watch this space. Let's see whether we can make some progress through that one.  

KW: Interesting. How will you get him to change his mind? What bauble are you able to offer?  

CL: No, no, no. I think actually both of us recognise that if people are going to come to this country and make an investment and partner with a New Zealand company, you know, think about a technology person in San Francisco wanting to come out here. They don't want to rent a house in Auckland. They want to be able to buy a house, and you think about what's happening in places like Tara Iti up the road from Auckland. You've got massive investment, 140 Americans here building, you know, $20 million plus homes, all that sort of stuff. So there has to be a way through that. So, you know, watch this space. It might be a bit more positive than Steve thinks.  

And what do you know? That was on the 7th of August. We watched the space, and on the 1st of September, the announcement came. Foreigners spending $5 million on approved investments in exchange for residency visas will be able to buy homes. But not just any old tat. They will only be able to buy homes that are $5 million plus.  

The Prime Minister said the changes aim to attract rich immigrants who find the thought of having a home in New Zealand attractive, without opening the market to widespread foreign property ownership. And he's right. I mean, there are some Kiwis looking at the $5 million plus homes, but it's not me. Is it you, Helen? No. No, she's not in the market for a $5 million home. Young Olivia, who's just joined us, no. No, she has yet to buy her first home, so it won't be in the $5 million plus category. It is not the majority of us, I would venture to suggest. And apparently, offshore buyers have responded immediately. High-end real estate agents say the word has gone out that New Zealand is welcoming people back into the country – but then you become a high-end real estate agent by talking up the market, don't you? So, you know, but you take them at their word.  

The word goes out from the Prime Minister that if you want to come to New Zealand and you want residency, guess what? You can buy a house, which makes sense. But it's got to be $5 mil plus, which for some people is what they would spend on a bach. You know, these kinds of high-end investors, it's the sort of money you'd spend on a bach in New Zealand.  

The Labour-New Zealand First coalition banned most foreign buyers in 2017 out of a belief they were contributing to skyrocketing house prices. The New Zealand First of that coalition is now the New Zealand First of this coalition that has reversed that ban. But Winston Peters is adamant that the ban actually remains. He says, "We have ensured that there are tight restrictions on eligibility and on what these current residence visa holders can purchase," including that existing restrictions, excluding the sale of rural farm and sensitive land, will still apply, as well as ensuring we don't get a repeat of the Canadian experience where there is a constant recycling of the same investment funds.  

The visa holders will be restricted to only one home, either purchasing an existing home or building a new one, with the value of that home being a minimum of $5 million. This will exclude over 99% of New Zealand homes on the market, protecting the vast majority from sale to foreigners and will not affect the wider housing market for Kiwis. He says that New Zealand First supporters understand that this is not a U-turn, that the ban remains – except it doesn't. The ban remains except for those who are buying houses over $5 million. So, shall we call it a clarification, Winston? Not a ban per se, just a clarification.  

Is he right? If you are dyed-in-the-wool anti-immigration,

Episode Transcript

Speaker 1 (00:06):
You're listening to the carry Wood and Morning's podcast from
News Talk sa'd B.

Speaker 2 (00:11):
You might remember those of you who were listening around
about a month ago when the Prime Minister was in
the studio taking your calls. Steve rang In and gave
the PM a bit of ginger over the economy. He said,
I know you're between a rock and a hard placed
prime minister, with the economy not really any more levers
they can pull to do much, and you guys are
just treading water. It's a pr machine to gloss over

(00:35):
while you pray that somehow the economy's going to pick up.
He said to the Prime Minister, there's one lever you
have yet to pull, and I think you know that
for the short term, sugar that will bring something into
this economy. That's a foreign buyers ban. If that comes off,
you know that we'll bring a bit of money in
and that will have a proper tangible effect rather than

(00:57):
just being.

Speaker 3 (00:57):
All talk talk.

Speaker 2 (00:59):
But of course that's not going to happen with Winston.

Speaker 3 (01:02):
On foreign buyers. That is a conversation that Winston and
I are having. So watch the space. Let's see whether
we can make some pains through that one.

Speaker 2 (01:08):
How will you get him to change his mind? What
bauble are you able to offer?

Speaker 1 (01:13):
No?

Speaker 3 (01:13):
No, I think actually both of us recognize that if
people are going to come to this country and make
an investment and partner with a New Zealand company. You
think about a technology person in San Francisco wanting to
come out here. They don't want to rent a house
in Auckland, that they want to be able to buy
a house. And you think about what's happening in places
like Tara Eaty up the road from Auckland. You get
massive investment, one hundred and forty Americans here building twenty

(01:34):
million dollar plus homes, all that sort of stuff. So
there has to be a way through that. So we
watch the space. It might be a bit more positive
than Steve thinks.

Speaker 2 (01:42):
And what are you know? That was on the seventh
of August. We watched the Space and on the first
of September the announcement came. Foreigner is spending five million
dollars into approved investments in exchange for residency visas will
be able to buy homes, but not just any old
tat They will only be able to buy homes that
are five million dollars plus. The Prime Minister said the

(02:05):
chain aim to attract rich immigrants who find the thought
of having a home in New Zealand attractive without opening
the market to widespread foreign property ownership. And he's right.
I mean, there are some Keiwis looking at the five
million dollar plus homes. But it's not me, is it you, Helen? No, no,
she's not the market for a five million dollar home.

(02:26):
Young Olivia who's just joined us. No, no, she has
yet to buy her first home, so it won't be
in the five million dollar plus category. It is not
the majority of US, I would venture to suggest, And
apparently offshore buyers have responded immediately. High end real estate
agents say, the word has gone out that New Zealand
is welcoming people back into the country. But then you

(02:49):
become a high end real estate agent by talking up
the market, don't you. So you know, but you take
them at their word. The word goes out from the
Prime Minister that if you want to come to New
Zealand and you want residency, guess what, you can buy
a house, which makes sense, but it's going to be
far mill plus, which for some people is what they
would spend on a batch. You know, these kind of

(03:10):
high end investors. It's a sort of money you'd spent
on a batch. In New Zealand, the Labor New Zealand
First Coalition banned most foreign buyers in twenty seventeen out
of a belief they were contributing to skyrocketing house prices.
The New Zealand First of that coalition is now the

(03:32):
New Zealand First Off this coalition that has reversed that ban,
but Winston Peters is adamant that the ban actually remains.
He says, we have ensured that there are tight restrictions
on eligibility and on what these current residents visa holders
can purchase, including that existing restrictions excluding the sale of

(03:55):
rural farm and sensitive land will still impply, as well
as ensuring we don't get a repeat of the Canadian
experience where there is a constant recycling of the same invents.
Smith funds the visa holders will be restricted to only
one home, either purchasing an existing home or build a
new one, with the value of that home being a

(04:17):
minimum of five million dollars. This will exclude over ninety
nine percent of New Zealand times on the market, protecting
the vast majority from sale to foreigners and will not
affect the wider housing market for Kiwis. He says that
New Zealand First supporters understand that this is not a
U turn, that the ban remains, except it doesn't.

Speaker 1 (04:42):
The ban.

Speaker 2 (04:45):
Remains except for those who are buying houses over five
million dollars. So shall we call it a clarification Winston,
not a not a ban per se, just a clarification?
Is he right? If you are a diet in the
wall anti immigration, and I am, I have to say,
I am really surprised at just how strong that sentiment

(05:09):
is within certainly within the texting community. There is a
really strong anti immigrant feeling amongst the Texters, which took
me aback somewhat. Can you swallow a dead rat as

(05:32):
Winston has done by accepting migrants who can afford to
drop five million dollars in investment money and five million
dollars on a new pad? Are those migrants? Okay? The
ban in general remains, but for a very few people

(05:54):
in the rarefied position of having ten million dollars to spend,
then they are welcome. The welcome mat is there for them.
So the only thing that really does make me wonder
is what Christopher Luxen and possibly David Seymour had to

(06:15):
give Winston Peters to get this over the line that
experienced old horse trader does and give it up for nothing.
You know you want it, you pay for it. So
I want to know what the cost was to get that.
Let's not say u turn, let's not say reversal, Let's

(06:36):
say clarification. And I also want to know what New
Zealand First voters think. I know you love him, you'd
follow him over the trenches. There's no man like Winston.
You know, he's probably up there next to Michael Joseph
Savage on the wall, the framed print with some plastic
roses and a vas underneath, gathering dust. But do you

(07:01):
understand that he has made this decision for the right reasons?
To me, it makes sense. Yeah, I really don't think.
I mean, I'm sure there will be some cashed up
Kiwis who are a little brassed off that their dream
home may now go up in price by half a
million dollars more because you've got foreign bars pudding on

(07:23):
the same property. But you know, I'm not going to cry,
and mccorney's over them. There's not going to be that
many affected, so I get where they're coming from. I
just want to know how much it costs National and
Act to get to New Zealand First Agreement, because yeah,

(07:44):
don't get something for nothing.

Speaker 1 (07:46):
For more from Kerry Wood and Mornings, listen live to
news talks it'd be from nine am weekdays, or follow
the podcast on iHeartRadio