What's changed for NZ property investors

The Overseas Investment Act was amended so Active Investor Plus, Investor 1 and Investor 2 visa holders may now buy or build one residential property over NZ$5m, with OIO consent. The broader foreign buyer prohibition on residential property is unchanged.

What it means for investors: If you're advising or partnering with an investor-visa holder, a high-value residential purchase is now a live option that wasn't there before 6 March — but it still needs OIO consent, so build that timeline in.

Read the glossary entry →  ·  Primary source: linz.govt.nz/overseas-investment

The granny flat consent exemption came into force. A detached, single-storey dwelling up to 70m² can now be built without building or resource consent, subject to strict conditions. A PIM is still required.

What it means for investors: A minor dwelling that would have needed full consent last year may now be exempt — but "exempt from consent" is not "exempt from council process": get the PIM before you start.

Read the glossary entry →  ·  Primary source: building.govt.nz

Pet bonds were introduced. Landlords may now charge up to two weeks' rent as a pet bond, in addition to the standard bond, with new pet consent rules attached.

What it means for investors: If you've been declining pet-owning tenants purely on damage-risk grounds, the bond tool to manage that risk now exists — worth revisiting your pet policy rather than defaulting to a blanket no.

Read the glossary entry →  ·  Primary source: tenancy.govt.nz

Methamphetamine contamination regulations took effect, modifying NZS 8510:2017 for tenancy purposes.

What it means for investors: If you're relying on older meth-testing guidance or a historical clearance certificate, check it was assessed against the current regulations, not the superseded standard.

Read the glossary entry →  ·  Primary source: tenancy.govt.nz

LVR restrictions were eased. The owner-occupier high-LVR limit rose to 25% of new lending above 80% LVR; the investor limit rose to 10% of new lending above 70% LVR.

What it means for investors: Banks have more room to lend to lower-deposit investors than they did in late 2025 — but the speed limit is a bank-wide cap, not a guarantee any individual bank still has room left in a given month.

Read the glossary entry →  ·  Primary source: rbnz.govt.nz

Healthy Homes Standards became universal and continuous. Every private rental must comply at all times, regardless of when the tenancy started, and the 90 and 120-day grace periods are gone.

What it means for investors: "We'll fix it within the grace period" is no longer a valid position for any rental — non-compliance is non-compliance from day one now, for every property in a portfolio.

Read the glossary entry →  ·  Primary source: tenancy.govt.nz/healthy-homes

Interest deductibility was fully restored to 100% for residential rental property. Ring-fencing is unchanged.

What it means for investors: The full interest deduction is back for every investor, not just new builds — but ring-fencing still means a loss-making rental's excess deductions carry forward against future rental income rather than offsetting other income.

Read the glossary entry →  ·  Primary source: ird.govt.nz

Residential Tenancies Amendment Act provisions came into force: 90-day no-cause terminations were reinstated, a 42-day notice applies in specific circumstances, and tenant notice was reduced from 28 to 21 days.

What it means for investors: Ending a periodic tenancy is materially easier for landlords than it was through 2021–2024 — but the correct notice type and period still has to match the actual circumstances, or the termination is invalid.

Read the glossary entry →  ·  Primary source: tenancy.govt.nz

DTI restrictions were introduced: a 6× gross income limit for owner-occupiers and 7× for investors, each with a 20% speed limit on lending above that ratio.

What it means for investors: Serviceability now has a second hard ceiling alongside bank test rates — a deal that services comfortably on paper can still be capped out by DTI, so check it explicitly rather than assuming serviceability alone clears you.

Read the glossary entry →  ·  Primary source: rbnz.govt.nz

The bright-line test was reduced to 2 years for all residential property sold on or after this date, regardless of purchase date.

What it means for investors: Older bright-line periods (5-year, 10-year) no longer apply to anyone — the 2-year test now governs every residential sale, including for properties bought years before the change.

Read the glossary entry →  ·  Primary source: ird.govt.nz/property/buying-and-selling/when-you-need-to-pay/the-brightline-test

The First Home Grant closed permanently to new applications and was not replaced. The KiwiSaver first home withdrawal and the First Home Loan remain available.

What it means for investors: First-home buyers relying on grant-style top-up funding need to re-plan around KiwiSaver withdrawal and the First Home Loan alone — the grant is not coming back and there's no direct substitute.

Read the glossary entry →  ·  Primary source: kaingaora.govt.nz

Depreciation on commercial and industrial buildings was removed. Residential buildings have been at 0% depreciation since 2011.

What it means for investors: Commercial and industrial building depreciation is no longer a deduction to plan around at all — chattels within those buildings are unaffected, so a chattels valuation is still worth doing on a commercial purchase.

Read the glossary entry →  ·  Primary source: ird.govt.nz