If you ever dreamed of owning a little slice of paradise in Oceania, you may be out of luck. New Zealand has just introduced a rule that prevents all foreigners from buying property in their country.
Thanks to a crazy housing market with prices driven up by foreigner buyers, people from Canada and almost every other country in the world have been banned from buying houses in New Zealand.
People in New Zealand have gotten so sick of high prices and renting from foreigners that the government stepped in to ensure that citizens had more opportunities to buy homes. Buyers from other countries, especially China, were driven up prices and making it impossible to find good homes.
This is a similar problem to what is happening here at home, with foreign buyers being blamed for driving up the housing markets in Vancouver and Toronto. The only difference is New Zealand has taken a big step to change it.
The rule was part of a campaign promise from the Liberal government in New Zealand, who came into power last year. Now only citizens and people with New Zealand residency status can buy homes.
There are two exceptions, however. People from Australia and Singapore are the only foreigners allowed to buy homes in New Zealand due to existing trade agreements between the nations.
The main source of concern for the country's housing market was in Auckland where prices were extremely high and foreigner buyers accounted for 22% of the city's sales. Whether or not the ban will change the market is yet to be seen.
Source: Global News