John MacDonald: The foreign buyer ban has run its course

So the Government's doing all sorts of things to try and get rich migrants into the country - except one thing. Which it should be doing.

Former immigration minister Stuart Nash was on Newstalk ZB this morning saying it's time to lift the ban on foreigners buying houses. And I agree with him.

The so-called 'golden visa' the Government announced yesterday is going to mean an end to the English language test for rich migrants. It will also give people residency if they invest $5 million over three years in a growth-type project or $10 million over five years in a more conservative operation.

We’re largely talking here about investing into a business, managed fund, commercial property or new property development.

But if they want to live here - they have to rent. They’re not allowed to buy.

Which is a rule Winston Peters likes. But according to Stuart Nash earlier, it's a rule he might be prepared to see go.

So too would the immigration lawyer saying today that, if these wealthy types can’t buy a place here, then they’re just not going to bother.

Nick Mason’s his name. And he’s saying that if the Government’s really serious about getting these people over here, then the ban on foreigners buying houses needs to be ditched.

It came-in back in 2018. Remember that was around the time that Phil Twyford went through the phone book, noted down all the foreign-sounding names and claimed the place was being overrun by aliens. Which it wasn’t.

So eight or nine years down the track, this immigration lawyer is saying that it’s a real sticking point and it will continue to be a sticking point if the Government doesn’t get rid of it.

He’s saying: "Let’s say we all have $15 million and I choose to invest that in New Zealand and I can get permanent residency. That’s great, I can stay in New Zealand as long as I like but I can’t own my own house until I’ve spent at least six months of a 12-month period here.”

Now we might be thinking, what’s wrong with waiting six months?. But that’s the tricky bit.

Nick Mason says people with this kind of money don't necessarily spend six months anywhere and he thinks if they can’t buy a house on day one, then it will continue to be “a considerable barrier for many investors”.

And let’s get real. If a millionaire or a billionaire is coming here, they're not going to be buying the weatherboard and tile place or the brick and tile place from the 50s. They're not going to be denying first-home buyers their chance to own a place.

So this thing about foreigners pricing New Zealanders out of the market - I don’t actually believe that it’s a thing.

I reckon this ban is like something from the dark ages. It’s based on paranoia and not much else.

And it’s not just Stuart Nash who thinks Winston Peters might not be as paranoid as he used to be about foreigners buying up all our houses and spoiling the quarter-acre dream.

Nicola Willis was dropping similar hints on Newstalk ZB today as well.

You can imagine what’s going on behind the scenes though, can’t you? Because this is something National and NZ First haven’t agreed on in the past.

NZ First has wanted it to stay and National has wanted it to go.

I think it should go too.

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:13):
So the government's changing the visa rules to These are
the immigration visa rules to try and get rich migrants
into the country, and it's doing all sorts of things
except one. It's still not leading them buy houses here.
And you might have heard former Immigration Minister Stuart Nash
saying to Mike a couple of hours ago that they

(00:34):
should be allowed to and I agree with them. So
this so called Golden Visa that the government announced yesterday
is going to be in an end to the English
language test for rich migrants, and it will give people
residency if they invest five million dollars over three years
in some sort of growth project which means, you know,

(00:55):
something with a bit more risk attached to it, or
ten million dollars over five years in a more conservative operation.
So we're largely talking here about investing into a business
or some sort of managed fund, or commercial property or
new property developments, all that sort of stuff. But if
they want to live here this is the tricky bat.
If they want to live here, they have to rent.

(01:21):
They're not allowed to buy. There are some there are
some rules which I'll tell you about inside the rules,
but essentially they can't buy us, which is a rule
Winston Peters likes. But if you heard Stuart Nash earlier,
you would have heard him say that he reckons Winston
can be talked around on this particular aspect.

Speaker 3 (01:42):
I'm still working with Winston on this. I think Winston
may come around to this. I mean, keep in mind
New Zealand's first major party platforms. We will not sell
Zealand New Zealand to foreigners. And look, I kind of
buy that the Fine Buyer Band was right at the
time because we believe that overseas buyers had about ten
center the market. Now that was skewing the market. This

(02:03):
is about creating economic opportunity, about economic wealth, about growth,
about jobs, everything that ZILD stands for. So I think
there's a way forward. And when we can say to
once these are the good guys, these are the guys
that are coming over here and creating jobs for keyweeks.
They're creating economic wealth for our country and they're driving
up everything that is positive about this country. I think

(02:24):
that there is a way forward and working Switzerland one.

Speaker 2 (02:26):
And like Stewart now says, if Winston really is all
about putting New Zealand first, then he needs to change
his turn on this one. Likewise, an immigration lawyer is
saying today that if these wealthy types can't buy a
place here, then they're just not going to bother. Nick
Mason is his name, and he's saying today that if
the government's really serious about getting these people with the

(02:49):
serious money over here, then the ban on foreigners buying
houses needs to be ditched. It came in back in
twenty eighteen. Remember this. It was around the time that
Phil Tweyfford went through the phone book, noted down all
the foreign sounding names and then claimed the place was
being overrun by blooming aliens. They're taken over the place,
which it wasn't so eight nine years down the track

(03:13):
and this immigration lawyer, Nick Mason, is saying that it
is a real sticking point and it will continue to
be a sticking point if the government doesn't get rid
of it, which it should do has to. He's saying, quote,
let's say we all have fifteen million dollars and I
choose to invest that in New Zealand and I can
get permanent residency. That's great. I can stay in New

(03:34):
Zealand as long as I like. But I can't own
my own house until I spend at least six months
of a twelve month period here. This is that bit,
the rule within the rule that I was telling you about.
And we might be thinking when we hear Nick Mason
say that, we might be what's wrong with that? Well,
what's wrong with waiting six months? But that's the tricky
bit that Nick Mason is talking about. He says, people

(03:55):
with this kind of money don't necessarily spend six months anywhere,
let alone New Zealand. And he thinks that if they
can't buy a house on day one, then it will
continue to be what he calls quote can considerable barrier
for many investors. And look, let's get real. If a
gazillionaire is coming here, they're not going to be buying

(04:16):
the weather board and tile place or the brick and
tile place from the fifties. They're not going to be
buying the Williams Corp apartments in the center of town.
They're not going to be denying first home buyers their
chance to own a place. So this thing about foreigners
pricing New Zealand is out of the market. I don't
actually believe it's a thing, and I reckon that this
band like something from the Dark Ages. It's based on

(04:39):
paranoia and nothing else. And it's not just Stuart Nashe
thinks once to Peter's and New Zealand First might stop
being so paranoid about foreigners buying up all our houses
and spoiling the quarter acre dream. Nichola Willis was dropping
some hints as well when she smoked to Mike Ever
listened to this.

Speaker 4 (04:57):
I think his position is that he sees value that
people are genuinely going to contribute to New Zealand. They're
investing their cash here, they're creating key we jobs, they're
contributing to New Zealand communities. Then actually there is a
case for them buying a home and the details of
that are all things that we're working through.

Speaker 2 (05:14):
You can imagine what's going on behind the scenes, because
this is something that National and New Zealand First have
agreed on in the past. Maybe they still don't because
until now National has wanted the foreign house by a
band gone and New Zealand First has wanted it to stay.
I think it should go as well, has to go.

Speaker 1 (05:37):
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