Every year, thousands of Kiwis living overseas consider returning home and buying property. Whether you are based in Australia, the UK, or elsewhere, buying a home in New Zealand while still overseas is absolutely possible-but requires planning. Real estate agents and developers across NZ regularly work with expat Kiwis looking to secure property before they return.
The Good News: NZ Citizens Can Buy From Overseas
Under the Overseas Investment Act 2018, New Zealand citizens can purchase residential property regardless of where they live. This applies even if you have been overseas for decades. Australian and Singaporean citizens also have purchase rights under free trade agreements.
However, if you are purchasing jointly with a non-citizen, non-resident partner or spouse, things become more complicated. The property purchase may require Overseas Investment Office (OIO) consent, or alternatively, the NZ citizen must hold the property solely in their name. This is a common issue for Kiwis who have married overseas partners. Discuss your specific situation with a lawyer before making offers.
Should I Apply for a Mortgage Before I Come Home?
These days, it is absolutely possible to apply for a mortgage remotely. All information can be provided online, meetings can be held over Zoom or Skype, and follow-ups can be done over email.
And you absolutely should get pre-approved for your mortgage if you can. It means you can start researching houses in the price bracket you are approved for.
What Information Does a Returning Expat Need to Provide?
The 2 fundamental things you'll need to prove are:
- •Deposit
- •Income in NZ
Your Deposit for Buying a House in NZ
You are buying a house in NZ, as a NZ citizen, so you are subject to the more lenient rules that apply to local buyers. A lot of the time, that means 10% deposit (or, ideally, 20%).
If you haven't transferred your deposit into NZD yet, allow for a 10% decline due to currency fluctuations.
Proving Your Income
None of the mainstream banks will lend you money for a home without proving that you have an income arranged when you arrive in NZ. To prove your income, you will need a signed contract with:
- •A start date
- •A clear remuneration package
- •Any other conditions included in your employment
Can a Returning Expat Get a Mortgage Without Employment?
Yes, there are some non-bank lenders that can arrange a mortgage if you don't have income. You'll need to buy your property in a Trust or in a company, and you won't be able to borrow more than 60%-70%.
Welcome Home
It's going to be great to have all our people back in NZ again. Expats returning to NZ should talk to an adviser about their situation, even if they don't have their employment confirmed.
Need Help With Your Mortgage?
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