How foreign buyers beat the system

View of Sky Tower across Grey Lynn from Tutanekai Street Grey Lynn. Photo / Doug Sherring
View of Sky Tower across Grey Lynn from Tutanekai Street Grey Lynn. Photo / Doug Sherring

New data on the level of foreign buying in the New Zealand housing market at just three per cent has been questioned by politicians, economist and property experts.

Here is one way foreign buyers are able to beat the system and avoid accurately being reflected in the data.

A reader, who we have chosen not to name, writes:

"My wife is a foreign National and has been a New Zealand citizen for the last 25 years, two years ago, her niece came to NZ to study on a student visa and opened a NZ bank account, got an IRD number and now her family has deposited money into a bank account in her home country in an account owned by a NZ company in Auckland, who in turn have now deposited the equivalent amount into the students NZ bank account, she has now brought a home here in NZ.

This money was disguised as funds for the daughters NZ education fees and funds to pay her living costs.

When the student went to renew her student visa last year, this process was pointed out by the immigration agent and the steps to take and the people to visit to go through this process were given to her at this time."

- NZ Herald

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