For many foreigners, the pull of New Zealand’s clean green image, vast landscapes and, slower pace of life is enough to convince them to make a permanent move here. According to Stats NZ, in the year to May this year 196,000 non-NZ citizens arrived on our doorstep, with the net migration of non-NZ citizens sitting at 142,900 people. Many come wanting to put down roots, and part of that is finding a permanent place to live.

Immigration agency Pathways assists migrants wanting to make the leap, and Managing Director Richard Howard says the criteria for purchasing a home can be relatively straightforward if you know what to do.

“A person must be a New Zealand resident visa holder, or a New Zealand citizen, and be ordinarily resident in New Zealand, in order to buy a residential property without the need for approval from the Overseas Investment office.”

So what does ‘ordinarily’ mean?

• Holding a resident visa at the time of the house purchase
• Having lived in New Zealand for the past 12 months, and
• Have been physically in New Zealand for at least 183 days during these 12 months.
• Be a tax resident

HOW DO I BECOME A RESIDENT?

Howard says right now there are now three job-based residency pathways. The skilled migrant category, green list and sector agreement.

Skilled Migrant Category (SMC)

The skilled migrant category works on a points based system, and applicants must achieve six points to be eligible to make a residence application.

“For example, you can achieve six points by having a PhD, and having a suitable job or suitable job offer in New Zealand. Those applicants can also apply directly from offshore.”

You can also obtain six points by securing a job with a pay packet that’s three times the median salary.

A masters or bachelors degree and a lower salary is worth less points, but the remaining points can be made up by time spent working in New Zealand.

“If you have a Masters degree, that's worth five points. The only way you're going to get the other point is by working in skilled employment in New Zealand for one year.”

“So these people can apply and get residency after working for 12 months. Then because they held a work visa during that time, that actually covers the requirement to live here for a year before purchasing a home. The clock doesn’t start at zero when their residency comes through.”

GREEN LIST

There are two tiers when it comes to green list residency.

Applicants employed, or who have been offered employment, in a Green List Tier 1 role can apply straight to residence.

“So doctors, nurses, secondary teachers, a number of engineering roles and some IT roles.”

“These people need that certainty of having that resident visa before they uproot their family, sell their house, and come to New Zealand. So that particular resident process is quite quick, and generally takes about two months.”

Some countries like Israel take a little longer to process for security reasons.

Applicants who are employed in Green List Tier 2 roles have a pathway to residence after working in their roles in New Zealand for 24 months, within the previous 30 months.

Relevant roles include construction supervisor, crane and heavy machinery operators, various teaching roles, electrician and mechanic roles, and some farming jobs.

SECTOR AGREEMENT

Applicants employed in particular care workforce sector roles have a pathway to residence after working in their roles for 24 months, and within the previous 30 months.

Applicants employed as shipmasters or deckhands have a pathway to residence after working in their roles for 24 months, within the previous 30 months.

I’VE GOT RESIDENCY STRAIGHT AWAY, WHAT IF I CAN'T WAIT TO BUY?

You might have residency, but there’s still a couple of requirements to be eligible to buy property here including being an ‘ordinary resident’.

Firstly you need to have lived in New Zealand for the past 12 months, and have physically been here for at least 183 days of those 12 months. You also need to be a tax resident. For some that’s a long time to wait, but Howard says there is another way to get onto the property ladder.

“If a person does not meet those requirements and is not an Australian or Singaporean citizen or permanent resident, you can get consent from the Overseas Investment Office (OIO).”

“This consent process is relatively quick (around 2 weeks) and the OIO application fee is $2,040. Then they’re in the market to buy a house.”

The consent is provided for 12 months and is not specific to any particular property. Once a migrant has gained ordinary resident status, the consent is no longer required.

“We’ve had two clients make that application in the last two months. It took one week and was very easy.”

“There are still conditions to be aware of, like having to live in the house, and if you sell, needing to notify the OIO. But the approval also gives migrants the ability to build too, so it’s reasonably flexible.”

I’VE GOT APPROVAL, WHAT NEXT?

Once you’re ready to start looking for your dream home there’s a number of things to consider.

1. Consider your lifestyle
   Think about what you want in a home. Do you have a big or small family? How many bedrooms do you need, and do you need a backyard? This will help you to decide the best location.

2. Do your research
   Collecting information and speaking to a Bayleys real estate professional can offer specific insight about your local property market, neighbourhoods of interest and the lending environment.

3. Talk to the bank
   Talking to your bank or a mortgage broker about how much you have to spend is a crucial step in the sales process, it's also a great opportunity to arrange a pre-approved loan. Vega has a great team of qualified experts. Richard Howard says it’s also a good idea to get a clear picture of your tax situation.
   “Some migrants may have investments offshore, and buying a property in New Zealand, will in due course make them a New Zealand tax resident. It’s a good idea to talk to someone who specialises in tax.”

4. Find a lawyer
   Involving a lawyer early means you’ll have an expert on hand to assist with any queries including whether you are legally able to buy.
   “There’s a compliance process they’ll follow to make sure everything is sound.”
   They can also help with questions around titles, zoning and settlement conditions.

5. Start your search
   From print media to digital property platforms, there are lots of platforms to help with your search. A great place to start is on the Bayleys website, or by talking to one of our agents/experts.