Latest news with #CalebPaterson
Scoop
22-05-2025
- Business
- Scoop
Foreign Buyers Put Off By Uncertainty
Press Release – Property and Build New Zealand is at risk of missing out on billions in foreign investment as uncertainty lingers around changes to residential property rules for overseas buyers, says Paterson Luxury Real Estate founder Caleb Paterson. International investors are already shifting their focus to countries with clearer pathways like Australia and the UAE due to a lack of commitment from the Government. New Zealand has a unique combination of political stability, natural beauty and a lifestyle that's incredibly appealing to global investors. They're not just looking to park capital, they want a safe, long-term base for their families and their businesses. What's missing is a clear pathway for them to invest. I'm dealing with ultra-high-net-worth clients from China, Canada, the US and the UK who are currently sitting on the fence. They want to invest here not just in homes, but in businesses, developments, the tech sector and other industries but they're not going to do that while the rules remain unclear. New Zealand's current foreign buyer restrictions are holding back an estimated hundreds of millions in immediate capital. Potential buyers are ready to move fast if the Government opens the door to offshore investment in the high-end residential sector. We're talking about people with serious capital such as a $4 billion syndicate from Taiwan, developers with $70 million commercial projects sitting ready, and expats and migrants waiting to buy homes, set up companies and inject money into our economy. I recently had someone trying to bring in a major international coffee roasting brand, but they couldn't get a foothold here because they couldn't buy a family home first to get settled. Canada's proposed wealth tax and political uncertainty in the US are further accelerating interest in New Zealand as a safe haven but with Australia offering clearer visa and investment pathways, many would-be Kiwi investors are going elsewhere. I've got clients telling me they'll take their money to Dubai or Sydney where they know what the rules are. There's no shortage of appealing alternatives. Last year, 40% of luxury listings were withdrawn from the market often because vendors were waiting for regulatory changes that never came. The result is a stagnant high-end market that's hurting not only vendors, but the broader economy. The consequences stretch beyond real estate. Baby boomers trying to downsize are unable to sell, holding up cash that could be reinvested into retirement, small business or intergenerational wealth transfer. Everyone's being impacted, even high-net-worth individuals who are less agile right now. This winter will be our coldest yet, metaphorically. People can't keep borrowing to stay afloat and we're going to see more financial strain. This isn't about pitying someone in a $15 million home. It's about what happens when they can't sell, builders aren't contracted and tradespeople sit idle. The wealth isn't circulating and the economy suffers. I'm probably one of the few people in the country who speaks to around 20 high-net-worth individuals a day. These people are worth $4 to $5 million or more on paper but right now every single one of them is feeling pressure. It's not just one or two outliers; across the board, I'm hearing stories of business strain, stalled investments and uncertainty. Unless you're a billionaire, people are navigating real challenges. We need a solution that gets capital flowing again, not just for their sake, but for the broader economy that depends on that investment. Outside of Auckland and Queenstown, opening the door to high-value international buyers would also unlock stalled developments in regions like Northland, the Bay of Plenty, and Central Otago. These are areas where investment could mean hundreds of new homes, jobs for local tradies, and real economic momentum outside the main centres. If there was a clear minimum threshold for foreign residential investment, there would be a flood of listings and a spike in transactions within days. Even if international buyers were allowed back into the market tomorrow, we wouldn't see a spike in prices straight away. There's a significant backlog of unsold high-end stock, it could take 12 to 18 months just to clear that. What we'd see first is volume returning, not price pressure. And that's exactly what the market needs right now – movement. The economic impact would be almost immediate with millions of dollars in real estate value unlocked we just need the green light. Without that certainty, the country risks not just missing out on capital but undermining its appeal as a long-term investment destination. We've got the lifestyle and the stability investors want. Now we just need to show them that we're open for business before they go elsewhere.
Scoop
22-05-2025
- Business
- Scoop
Foreign Buyers Put Off By Uncertainty
Press Release – Property and Build New Zealand is at risk of missing out on billions in foreign investment as uncertainty lingers around changes to residential property rules for overseas buyers, says Paterson Luxury Real Estate founder Caleb Paterson. International investors are already shifting their focus to countries with clearer pathways like Australia and the UAE due to a lack of commitment from the Government. New Zealand has a unique combination of political stability, natural beauty and a lifestyle that's incredibly appealing to global investors. They're not just looking to park capital, they want a safe, long-term base for their families and their businesses. What's missing is a clear pathway for them to invest. I'm dealing with ultra-high-net-worth clients from China, Canada, the US and the UK who are currently sitting on the fence. They want to invest here not just in homes, but in businesses, developments, the tech sector and other industries but they're not going to do that while the rules remain unclear. New Zealand's current foreign buyer restrictions are holding back an estimated hundreds of millions in immediate capital. Potential buyers are ready to move fast if the Government opens the door to offshore investment in the high-end residential sector. We're talking about people with serious capital such as a $4 billion syndicate from Taiwan, developers with $70 million commercial projects sitting ready, and expats and migrants waiting to buy homes, set up companies and inject money into our economy. I recently had someone trying to bring in a major international coffee roasting brand, but they couldn't get a foothold here because they couldn't buy a family home first to get settled. Canada's proposed wealth tax and political uncertainty in the US are further accelerating interest in New Zealand as a safe haven but with Australia offering clearer visa and investment pathways, many would-be Kiwi investors are going elsewhere. I've got clients telling me they'll take their money to Dubai or Sydney where they know what the rules are. There's no shortage of appealing alternatives. Last year, 40% of luxury listings were withdrawn from the market often because vendors were waiting for regulatory changes that never came. The result is a stagnant high-end market that's hurting not only vendors, but the broader economy. The consequences stretch beyond real estate. Baby boomers trying to downsize are unable to sell, holding up cash that could be reinvested into retirement, small business or intergenerational wealth transfer. Everyone's being impacted, even high-net-worth individuals who are less agile right now. This winter will be our coldest yet, metaphorically. People can't keep borrowing to stay afloat and we're going to see more financial strain. This isn't about pitying someone in a $15 million home. It's about what happens when they can't sell, builders aren't contracted and tradespeople sit idle. The wealth isn't circulating and the economy suffers. I'm probably one of the few people in the country who speaks to around 20 high-net-worth individuals a day. These people are worth $4 to $5 million or more on paper but right now every single one of them is feeling pressure. It's not just one or two outliers; across the board, I'm hearing stories of business strain, stalled investments and uncertainty. Unless you're a billionaire, people are navigating real challenges. We need a solution that gets capital flowing again, not just for their sake, but for the broader economy that depends on that investment. Outside of Auckland and Queenstown, opening the door to high-value international buyers would also unlock stalled developments in regions like Northland, the Bay of Plenty, and Central Otago. These are areas where investment could mean hundreds of new homes, jobs for local tradies, and real economic momentum outside the main centres. If there was a clear minimum threshold for foreign residential investment, there would be a flood of listings and a spike in transactions within days. Even if international buyers were allowed back into the market tomorrow, we wouldn't see a spike in prices straight away. There's a significant backlog of unsold high-end stock, it could take 12 to 18 months just to clear that. What we'd see first is volume returning, not price pressure. And that's exactly what the market needs right now – movement. The economic impact would be almost immediate with millions of dollars in real estate value unlocked we just need the green light. Without that certainty, the country risks not just missing out on capital but undermining its appeal as a long-term investment destination. We've got the lifestyle and the stability investors want. Now we just need to show them that we're open for business before they go elsewhere.
Scoop
16-05-2025
- Business
- Scoop
Luxury Home Rentals Surge As Wealthy North Americans Queue For NZ Investor Visas
A surge in wealthy North American investors anticipating changes to New Zealand's foreign buyer rules is fuelling a sharp rise in off-market luxury home rental demand, according to property experts. Real estate agent Caleb Paterson says the country is seeing increased interest from ultra-high-net-worth individuals, particularly from the United States and Canada, who are looking to secure short-term leases in multimillion-dollar homes, while they wait for clarity around new investor visa pathways and possible amendments to the foreign buyer ban. According to latest REINZ data, there is a growing glut of premium homes languishing on the market, with median days to sell in Auckland of properties valued at $3.5 million rising from 42 days in March 2024 to 64 days in March 2025 listings. In Queenstown, days to sell for luxury listings have climbed even higher, reaching 95. 'These are clients who could buy a home tomorrow if they were allowed,' says Paterson, founder of Paterson Luxury Real Estate. 'They're testing the waters, sometimes paying $20,000 to $30,000 a week to rent properties that fit their lifestyle and long-term ambitions.' Paterson says the dynamic is reshaping how vendors approach the luxury market, with many now embracing a 'try-before-you-buy' model as a way to attract offshore tenants and potentially convert them into future buyers. He says New Zealand Trade and Enterprise has reported a 700% increase in the number of people visiting the Active Investor Plus Visa application page, compared to the older version of the visa at the same time last year. Paterson says he was approached by a premium rental firm wanting to match investors with properties after being unable to meet demand. 'While there is a surplus of rental properties at the lower end of the market, high net worth individuals have very specific accommodation requirements, and there is not enough suitable rental stock in the traditional market. This unmet demand has led to the development of a hybrid model, which is injecting hundreds of thousands of dollars into the economy each week. 'Traditionally, these homes would be listed for sale and sit idle while owners waited for the right buyer. But with the market stagnating in recent months we're now seeing more owners open to short-term rental agreements, particularly as these international clients are happy to pay well above local market rates. 'We've got vendors who previously would never have considered renting their home now proactively asking us to place it with international clients for six to 12 months. If the foreign buyer ban is lifted, we expect many of these tenants will put in an immediate purchase offer on these homes,' he says. Paterson says the shift comes amid rising uncertainty in key offshore markets. He says many of his Canadian clients are seeking to exit due to proposed wealth taxes and capital gains reforms, while American buyers are increasingly motivated by political instability and upcoming elections. 'Some are saying they just don't want to live under another Trump presidency. Others have had New Zealand on their radar for a while and the current visa discussions have reignited that interest,' he says. Half of Paterson's current listings – which include homes valued between $8 million and $20 million – are now available for rent, and many are receiving multiple enquiries before even hitting the open market. 'The demand is there, but the ability to purchase still isn't and that's what is driving this surge in ultra-luxury rentals. 'We're also seeing foreign exchange rates playing a role – with the NZD falling to its lowest point against the greenback in the past decade early this month, it's extremely favourable for these buyers, so what looks expensive locally can actually feel like a bargain to someone arriving from California or Toronto,' he says. Paterson says some owners have seen rental returns more than triple what the domestic market would offer, particularly when facilitated through high-end rental agencies. He says while one home might fetch $2,000 a week in the traditional market, it could rent for $6,000–$7,000 through private arrangements with vetted international tenants. 'There's a lot of wealth sitting in our homes that isn't being unlocked because we've frozen out foreign investment. Opening a pathway for buyers at the $5 million-plus level could drive a major reinvestment cycle and ease pressure across the market,' says Paterson. Paterson believes now is the perfect time for the Government to remove the current uncertainty preventing downsizers from moving to the next stage in their life. 'We're coming into winter, which is typically a quiet time, and without clarity, we're seeing people sit on their hands. I've had Kiwi clients walk away from retirement village agreements because they can't sell their homes, and that's clogging up movement across every tier of the market. 'A typical high net worth downsizer will reinvest most of the proceeds from the sale of a $5m plus home in local businesses as they look to build their retirement incomes. 'Letting high-value buyers into the country not only stimulates the property sector it also brings in capital, supports tradespeople and helps unlock the next stage of the housing cycle. If this is done right there will be a transfer of wealth that benefits New Zealand down the track,' he says.
Scoop
16-05-2025
- Business
- Scoop
Luxury Home Rentals Surge As Wealthy North Americans Queue For NZ Investor Visas
Press Release – Paterson Luxury Letting high-value buyers into the country not only stimulates the property sector it also brings in capital, supports tradespeople and helps unlock the next stage of the housing cycle. If this is done right there will be a transfer of wealth that … A surge in wealthy North American investors anticipating changes to New Zealand's foreign buyer rules is fuelling a sharp rise in off-market luxury home rental demand, according to property experts. Real estate agent Caleb Paterson says the country is seeing increased interest from ultra-high-net-worth individuals, particularly from the United States and Canada, who are looking to secure short-term leases in multimillion-dollar homes, while they wait for clarity around new investor visa pathways and possible amendments to the foreign buyer ban. According to latest REINZ data, there is a growing glut of premium homes languishing on the market, with median days to sell in Auckland of properties valued at $3.5 million rising from 42 days in March 2024 to 64 days in March 2025 listings. In Queenstown, days to sell for luxury listings have climbed even higher, reaching 95. 'These are clients who could buy a home tomorrow if they were allowed,' says Paterson, founder of Paterson Luxury Real Estate. 'They're testing the waters, sometimes paying $20,000 to $30,000 a week to rent properties that fit their lifestyle and long-term ambitions.' Paterson says the dynamic is reshaping how vendors approach the luxury market, with many now embracing a 'try-before-you-buy' model as a way to attract offshore tenants and potentially convert them into future buyers. He says New Zealand Trade and Enterprise has reported a 700% increase in the number of people visiting the Active Investor Plus Visa application page, compared to the older version of the visa at the same time last year. Paterson says he was approached by a premium rental firm wanting to match investors with properties after being unable to meet demand. 'While there is a surplus of rental properties at the lower end of the market, high net worth individuals have very specific accommodation requirements, and there is not enough suitable rental stock in the traditional market. This unmet demand has led to the development of a hybrid model, which is injecting hundreds of thousands of dollars into the economy each week. 'Traditionally, these homes would be listed for sale and sit idle while owners waited for the right buyer. But with the market stagnating in recent months we're now seeing more owners open to short-term rental agreements, particularly as these international clients are happy to pay well above local market rates. 'We've got vendors who previously would never have considered renting their home now proactively asking us to place it with international clients for six to 12 months. If the foreign buyer ban is lifted, we expect many of these tenants will put in an immediate purchase offer on these homes,' he says. Paterson says the shift comes amid rising uncertainty in key offshore markets. He says many of his Canadian clients are seeking to exit due to proposed wealth taxes and capital gains reforms, while American buyers are increasingly motivated by political instability and upcoming elections. 'Some are saying they just don't want to live under another Trump presidency. Others have had New Zealand on their radar for a while and the current visa discussions have reignited that interest,' he says. Half of Paterson's current listings – which include homes valued between $8 million and $20 million – are now available for rent, and many are receiving multiple enquiries before even hitting the open market. 'The demand is there, but the ability to purchase still isn't and that's what is driving this surge in ultra-luxury rentals. 'We're also seeing foreign exchange rates playing a role – with the NZD falling to its lowest point against the greenback in the past decade early this month, it's extremely favourable for these buyers, so what looks expensive locally can actually feel like a bargain to someone arriving from California or Toronto,' he says. Paterson says some owners have seen rental returns more than triple what the domestic market would offer, particularly when facilitated through high-end rental agencies. He says while one home might fetch $2,000 a week in the traditional market, it could rent for $6,000–$7,000 through private arrangements with vetted international tenants. 'There's a lot of wealth sitting in our homes that isn't being unlocked because we've frozen out foreign investment. Opening a pathway for buyers at the $5 million-plus level could drive a major reinvestment cycle and ease pressure across the market,' says Paterson. Paterson believes now is the perfect time for the Government to remove the current uncertainty preventing downsizers from moving to the next stage in their life. 'We're coming into winter, which is typically a quiet time, and without clarity, we're seeing people sit on their hands. I've had Kiwi clients walk away from retirement village agreements because they can't sell their homes, and that's clogging up movement across every tier of the market. 'A typical high net worth downsizer will reinvest most of the proceeds from the sale of a $5m plus home in local businesses as they look to build their retirement incomes. 'Letting high-value buyers into the country not only stimulates the property sector it also brings in capital, supports tradespeople and helps unlock the next stage of the housing cycle. If this is done right there will be a transfer of wealth that benefits New Zealand down the track,' he says.
Scoop
16-05-2025
- Business
- Scoop
Luxury Home Rentals Surge As Wealthy North Americans Queue For NZ Investor Visas
A surge in wealthy North American investors anticipating changes to New Zealand's foreign buyer rules is fuelling a sharp rise in off-market luxury home rental demand, according to property experts. Real estate agent Caleb Paterson says the country is seeing increased interest from ultra-high-net-worth individuals, particularly from the United States and Canada, who are looking to secure short-term leases in multimillion-dollar homes, while they wait for clarity around new investor visa pathways and possible amendments to the foreign buyer ban. According to latest REINZ data, there is a growing glut of premium homes languishing on the market, with median days to sell in Auckland of properties valued at $3.5 million rising from 42 days in March 2024 to 64 days in March 2025 listings. In Queenstown, days to sell for luxury listings have climbed even higher, reaching 95. 'These are clients who could buy a home tomorrow if they were allowed,' says Paterson, founder of Paterson Luxury Real Estate. 'They're testing the waters, sometimes paying $20,000 to $30,000 a week to rent properties that fit their lifestyle and long-term ambitions.' Paterson says the dynamic is reshaping how vendors approach the luxury market, with many now embracing a 'try-before-you-buy' model as a way to attract offshore tenants and potentially convert them into future buyers. He says New Zealand Trade and Enterprise has reported a 700% increase in the number of people visiting the Active Investor Plus Visa application page, compared to the older version of the visa at the same time last year. Paterson says he was approached by a premium rental firm wanting to match investors with properties after being unable to meet demand. 'While there is a surplus of rental properties at the lower end of the market, high net worth individuals have very specific accommodation requirements, and there is not enough suitable rental stock in the traditional market. This unmet demand has led to the development of a hybrid model, which is injecting hundreds of thousands of dollars into the economy each week. 'Traditionally, these homes would be listed for sale and sit idle while owners waited for the right buyer. But with the market stagnating in recent months we're now seeing more owners open to short-term rental agreements, particularly as these international clients are happy to pay well above local market rates. 'We've got vendors who previously would never have considered renting their home now proactively asking us to place it with international clients for six to 12 months. If the foreign buyer ban is lifted, we expect many of these tenants will put in an immediate purchase offer on these homes,' he says. Paterson says the shift comes amid rising uncertainty in key offshore markets. He says many of his Canadian clients are seeking to exit due to proposed wealth taxes and capital gains reforms, while American buyers are increasingly motivated by political instability and upcoming elections. 'Some are saying they just don't want to live under another Trump presidency. Others have had New Zealand on their radar for a while and the current visa discussions have reignited that interest,' he says. Half of Paterson's current listings - which include homes valued between $8 million and $20 million - are now available for rent, and many are receiving multiple enquiries before even hitting the open market. 'The demand is there, but the ability to purchase still isn't and that's what is driving this surge in ultra-luxury rentals. 'We're also seeing foreign exchange rates playing a role - with the NZD falling to its lowest point against the greenback in the past decade early this month, it's extremely favourable for these buyers, so what looks expensive locally can actually feel like a bargain to someone arriving from California or Toronto,' he says. Paterson says some owners have seen rental returns more than triple what the domestic market would offer, particularly when facilitated through high-end rental agencies. He says while one home might fetch $2,000 a week in the traditional market, it could rent for $6,000–$7,000 through private arrangements with vetted international tenants. 'There's a lot of wealth sitting in our homes that isn't being unlocked because we've frozen out foreign investment. Opening a pathway for buyers at the $5 million-plus level could drive a major reinvestment cycle and ease pressure across the market,' says Paterson. Paterson believes now is the perfect time for the Government to remove the current uncertainty preventing downsizers from moving to the next stage in their life. 'We're coming into winter, which is typically a quiet time, and without clarity, we're seeing people sit on their hands. I've had Kiwi clients walk away from retirement village agreements because they can't sell their homes, and that's clogging up movement across every tier of the market. 'A typical high net worth downsizer will reinvest most of the proceeds from the sale of a $5m plus home in local businesses as they look to build their retirement incomes. 'Letting high-value buyers into the country not only stimulates the property sector it also brings in capital, supports tradespeople and helps unlock the next stage of the housing cycle. If this is done right there will be a transfer of wealth that benefits New Zealand down the track,' he says.
