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Thread: Buying a house | Talent (accredited employer) work visa

  1. #11
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    To revive this thread; I have a resident visa (2 years holding WTR visa) and looking to buy a house. The mortgage broker I spoke to said because of the travel restrictions on a resident visa, they would struggle to get me a hoe loan any bigger than 70% at this stage we have struggled to scrape together a 20% deposit for Auckland house prices, so there is no way we can afford a 30% deposit.

    Our alternative now is to wait until May 2019 when we get PR and the restrictions are lifted.

    Does anybody know any other ways around this? I have been living/working in NZ for over 5 years, spent the first couple of years on various work visas (did not meet requirements of residency) until getting the WTR.

    I see INZ do a Variation of Resident Travel Conditions (https://www.immigration.govt.nz/new-...vel-conditions), but it seems this is just to extend them if you do not qualify for PR - I doubt there are any known instances of them lifting them so we can get a home loan?

    Thank you,

    Sarah

  2. #12
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    Nobody gets PR until they qualify for it by meeting all the conditions mentioned, and also one of the five criteria for Commitment to New Zealand. https://www.immigration.govt.nz/new-...anent-resident

    I don't understand what the mortgage broker means about 'because of the travel conditions'. Travel conditions aren't "conditions" at all, but permission to travel freely in and out of New Zealand in the course of the two years, at the end of which you can gain PR and so continue to have permission to travel freely in and out of New Zealand. Residence itself lasts for ever while in NZ. What's the problem?

  3. #13
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    Hi Snos, Just interested to know if you have factored in the recent about-to-be-announced ban on foreign ownership in NZ. I just got my residence and am very keen to buy a house, but I am not sure if I will be able to complete the transaction before the ban is imposed. How many days' homework are you doing before considering buying? Sorry for the lame questions, I am very new to the real estate space decisions.

  4. #14
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    JandM because on a Resident Visa has an expiry, and if you are out of the country when it expires you can't re-enter, they consider that travel restrictions and as such banks (apparently) will not lend without a bigger deposit.

    param912003 The foreigner ban won't affect me because I can't buy before having PR anyway. I don't know what you mean about how many days homework? I have been saving/looking for years, but we hit 20% deposit in the last couple of months so we've taken the next step to esquire with a couple of brokers, who have both told us banks won't loan to a non-PR without a 30-40% deposit, so I'm stuck.

    I totally get the foreigner buying restrictions, but it seems to benefit the rich and limit the working class. A rich person who has just arrived in NZ can buy a property right away because they have more cash, I have lived and worked here for more than 5 years and have saved hard to get a 20% deposit, but can't get the loan I need until I have PR... by the time I've saved 30-40% deposit I'll have easily reached May 2019 and I will have PR then. I mean I'll be in a great position then, so long as house prices don't continue to rise.... yea right!

    (edited because I confused the travel restrictions on my WTR visa and Resident visa)
    Last edited by Snos; 31st January 2018 at 08:45 AM.

  5. #15
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    JandM because on a Resident Visa has an expiry
    ,
    No, the travel conditions expire after two years, but while you're in NZ, residence lasts for ever.
    and if you are out of the country when it expires you can't re-enter,
    ...if the travel conditions expire while you are out of the country, that is true, but if you manage things right, you won't do this...
    they consider that travel restrictions and as such banks (apparently) will not lend without a bigger deposit.
    There have been others who were able to buy while a resident. I don't think what this broker is telling you is in common to all lenders.

    But I understand it must be galling to be told this in your position. Good luck in finding a way through it all.

  6. #16
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    Quote Originally Posted by Snos View Post
    I totally get the foreigner buying restrictions, but it seems to benefit the rich and limit the working class. A rich person who has just arrived in NZ can buy a property right away because they have more cash
    I believe the intent of these restrictions is precisely the opposite--to prevent wealthy overseas buyers from purchasing property as an investment, often in cash, which then drives up the overall costs of housing by reducing market supply, while they simultaneously rent that property back to people working on the local economy for a profit. By restricting foreign buyers who don't live in, and may never intend to live in, New Zealand from buying property, it should cool the market values and allow people to afford places to live without being marginalised by those who see those properties primarily as investments.

    As someone who one day hopes to buy a house in New Zealand (to live in, not to rent for profit or financial gain), it seems like a good plan. If you purchased a house in Auckland 25 years ago, then you might not be so enthusiastic about a program to reduce property value. But, as with all programs of this type, its success and effect remains to be seen.

  7. #17
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    Isn't there an exception if foreigners buy land and build a house, thus adding to the housing supply? I don't know if that's a practical option for your situation, and from what JandM is saying, you may just need to talk to more lenders.

  8. #18
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    Quote Originally Posted by Juniper View Post
    Isn't there an exception if foreigners buy land and build a house, thus adding to the housing supply? I don't know if that's a practical option for your situation, and from what JandM is saying, you may just need to talk to more lenders.

    Unfortunately this is not a mis-interpretation or bad advice from a single broker. While banks will lend 80% to permanent residents and citizens, they will not lend this much to non-permanent residents (which unfortunately includes resident visa holders). This entire situation actually started because I was looking at buying a land & build package with a 10% deposit, but once the broker found out I didn't have PR said she'd struggle to get me anything more than 70% loan. I have since spoken to 2 independent brokers and my bank directly, who have all advised me to continue to save until I have PR next year.



    Quote Originally Posted by JandM View Post
    ,
    ...if the travel conditions expire while you are out of the country, that is true, but if you manage things right, you won't do this...
    I 100% agree, and after spending several years and thousands of dollars on getting my resident visa, I fully intend on managing this. However this is clearly considered a risk to lenders.

    Frustrating, but I guess that's my answer. Thanks all.

  9. #19
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    Quote Originally Posted by diallta View Post
    I believe the intent of these restrictions is precisely the opposite--to prevent wealthy overseas buyers from purchasing property as an investment, often in cash, which then drives up the overall costs of housing by reducing market supply, while they simultaneously rent that property back to people working on the local economy for a profit. By restricting foreign buyers who don't live in, and may never intend to live in, New Zealand from buying property, it should cool the market values and allow people to afford places to live without being marginalised by those who see those properties primarily as investments.

    As someone who one day hopes to buy a house in New Zealand (to live in, not to rent for profit or financial gain), it seems like a good plan. If you purchased a house in Auckland 25 years ago, then you might not be so enthusiastic about a program to reduce property value. But, as with all programs of this type, its success and effect remains to be seen.
    Yes I agree the intent it good, and actually is going to (hopefully) be amazing for NZ economy in the future. However at the end of the day, for someone in my situation, tenure in New Zealand means nothing (I've been living/working since 2012) because I don't have the correct visa status... but if I had more money I could buy tomorrow. That's frustrating, but I just need to suck it up and be patient

  10. #20
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    I just came across something relevant here, which says the 30% deposit is an Auckland thing. This page is geared towards migrants, so the whole PR thing may still be true, but it sounds like deposit requirements might be "only" 20% outside Auckland, even for migrants?

    https://www.newzealandnow.govt.nz/li...uying-building

    "You’ll need a good deposit to get a home loan, as there are currently restrictions on how much of a property’s value banks can lend you. They’re called the loan-to-value ratio requirements (LVR).They mean that borrowers with less than a 20% deposit (30% for property investors in Auckland) may find it more difficult to get a loan."

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