Stuart Nash: Former Labour Minister on foreign investors being able to buy homes

A drive to attract foreign investors could deliver more than just financial gain. 

The Government’s tweaking visa rules, letting Active Investor Plus holders buy or build one New Zealand home worth at least $5 million. 

This is on top of the minimum $5 million investment pledge needed to get the visa. 

Former Labour Cabinet minister Stuart Nash told Andrew Dickens these investors will bring experience, contacts, and networks with them.   

He says they'll bring in a whole mix of different skills and competencies - which will create a lot of value 

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Episode Transcript

Speaker 1 (00:00):
Well, the government's changed its mind on the foreign buyer's ban.

(00:02):
Golden visa holders can now snap up homes worth five
million dollars or more as long as they invest at
least five million dollars into the country. The wider ban
on residential property still stands. Stuart Nash is a former
Labor Cabinet minister. He's currently a co founder of Nash
Kelly Global, the relocation consultancy that advisors wealthy individuals. The
one we're looking for, particularly from the US on immigration

(00:23):
to New Zealand, and he joins us. Now, Hello Sturton,
good morning. How are you very good on a political plant?
First of all, how on earth did the government get
Winston on board?

Speaker 2 (00:33):
I love Winston's what about economic development and growth? He
knows that. You know, when these investor migrants come to
New Zield and they invest in the way they are,
that creates jobs and wealth and it's good for the
jild economy. I mean at the moment we've got about
one point eight billion dollars it's been promised. Now remember
this is going into active investment into our economy. There's
nothing bad about that.

Speaker 1 (00:52):
Yeah, there are currently three hundred and eight applications for
the Golden Visa, and they're bringing a lot of money.
You just told us that the numbers. Are they ready
to snap up a property as well?

Speaker 2 (01:03):
They take a little bit of time because they've got
to you know, they've got to figure out how they're
going to invest. They've got to get their visas. But
you know, this is money that's invested actively into the economy.
But the thing for me is it's not just about
the money. These people bring their experiences, their contacts, their networks,
their competency. So by and large, what happens is when
they bring their money in, they also bring in a

(01:26):
whole lot of different skills and competencies into our communities.
That just creates value. It's fantastic.

Speaker 1 (01:31):
Do you think it's going to drive house prices up?
Because I saw a guy on the telly last night.
He's saying this is going to pump primes things, give
people more confidence. It should affect the entire market. Do
you think it will drive the prices up or only
affect that top point five percent of properties?

Speaker 2 (01:46):
We look, what I say is that these people don't
compete with the first time buyers. They compete with a
lot of winners. Keep in mind, these people can't buy
a house under five million dollars and it's about they
reckoon there. It's about ten million houses or seven thousand
houses that aho lived in immediately worth over five million dollars.
So for the vast majority of people, that won't have

(02:07):
any difference whatsoever. So no, in fact, quite the opposite.
I think this would be great for builders because you know,
these guys will come in, they will build expensive houses
because this is what they do. But you know, I
live in Napier. There are very very few houses in
napi at any worth over five million dollars. So I
think they're good, hard working keys aren't going to see

(02:29):
a change add all to their house prices.

Speaker 1 (02:31):
Okay, well you've been talking to people who have got
the Golden visa. Are they keen to build? Would that
actually be even more attractive to them because they could
then make the house that they really want.

Speaker 2 (02:41):
Yeah, accommodation of both, so you will see some by
look it it may affect house prices at the hanging
down in Queenstown, but the vast majority of people won't
see any difference whatsoever. But I was talking to a
chap who has got a development he wants. This is
this is an American billionaire. He wants to build an
incredibly big lodge. And there's about thirty sections that will

(03:05):
that will be worth over five million dollars there. That
is a significant amount of development. These are houses that
wouldn't be built otherwise. Of course, you know the sections
are open for Kiwis to buy, but we are talking
high end and we're talking people who come over here
and when they have a property here, they tend to
stay for longer, they spend more. There is no downside
to this at all. So you know when I hear

(03:26):
people say this is going to this is going to
impact the property prices, I just I just think not
at all, not at all. At the very top end maybe,
but good hard working Kiwis who are you know who
are looking struggling or working hard to get there. So
the housing letter won't make a difference.

Speaker 1 (03:44):
No matter what the Prime Minister says, this is still
a compromise to fit in Winston Peters. So should they
look to open it up further.

Speaker 2 (03:52):
No, I think we've got I think we've struck at
a very nice balance. I don't think this is a compromise.
Now the reason I say that is New Zealand First
has always been about economic development and growth and making
sure that good hard work and keemities have the opportunity
to work. We're talking so far one point eight billion
dollars it's been promised to come into our economy. I

(04:13):
think this is going to get a little bit of
a boost in my business. I've heard about four clients
in the last couple of weeks. I've said, no, we're
not interested in New Zealand because we can't buy a property.
Now they can. You're going to see more money coming
into the economy and I just want to reiterate this
is money that has to be invested actively. So we're
talking about into New Zealand businesses, into areas that create

(04:34):
jobs and economic wealth for our economy and for all
key weeks.

Speaker 1 (04:37):
Now, Stuart, you've mentioned New Zealand First and Awful Lot
in this interview and does this mean that you're going
to stand for them.

Speaker 2 (04:44):
No, No, not at all. All I'm saying is that
Winston and Shane represent the politics of pragmatism and I
think this is about economic development, growth and jobs in
Winston and Shane understand that. It's the reason why we're
talking about a good news story at the moment.

Speaker 1 (04:59):
Good stuff. Thank you so much at a Stuard mesh
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