Foreign Home Buyers

Warm Up

1. Do you want to live abroad?

2. What countries would you like to visit?

3. What do you think it would feel like to live in a new country?

   
   

Reading

New Zealand's government has taken a decisive step to address the country's housing crisis by announcing a ban on the purchase of homes by foreigners, set to commence in early 2018. The move comes as a response to the escalating demand for properties driven by overseas buyers, primarily using houses as investments or vacation homes. Over the past few decades, this trend has contributed to a significant surge in house prices, with a staggering increase of over 50 per cent in the last ten years alone. 

The soaring prices have left many New Zealanders struggling to afford their own homes, as they find themselves priced out of the housing market. In light of this, soon-to-be Prime Minister Jacinda Ardern emphasized the government's commitment to making homeownership more accessible for Kiwis. She stated that the ban aims to curb foreign speculation in the housing market, ensuring that local residents are not disadvantaged by being outbid by overseas investors.

However, it's important to note that the ban will not extend to Australians, and overseas investors will still have the opportunity to purchase land in New Zealand. Ardern clarified that non-residents or non-citizens will retain the ability to buy residential land for the purpose of building a house, provided they contribute to increasing the housing supply.

The government's decision is seen as a proactive measure to alleviate the pressure on the property market and create a more equitable housing environment for New Zealanders. Ardern expressed hope that the ban would help "take some of the heat" out of the market, offering relief to local buyers and promoting greater housing affordability across the country.

Reading Comprehension

1. What action has the New Zealand government taken to address the housing crisis?

2. What has contributed to the significant surge in house prices in New Zealand?

3. How have soaring house prices affected many New Zealanders?

Discussion Questions

1. Who will the ban on home purchases by foreigners not extend to?

2. What opportunity will overseas investors still have in New Zealand despite the ban?

3. What is the purpose of the ban announced by the New Zealand government?

4. Why do you think the New Zealand government decided to ban the purchase of homes by foreigners?

5. Do you agree with the government's decision to implement the ban? Why or why not?

6. How will the ban affect the housing market in New Zealand?

7. How could the ban affect the relationship between New Zealand and other countries?

8. How could the ban affect the relationship between locals and foreigners in New Zealand?

9. What other measures can the government take to address the housing crisis?

10. How important is it for a government to prioritize the needs of its citizens over those of foreign investors?