Prosperous New Zealand Visa Attracts High-end Real Estate Investors from Hong Kong and Mainland China
The Active Investor Plus (AIP) program, relaunched in April, has seen a surge of interest from foreign investors, with over 200 applications received since its update, according to data from Greener Pastures New Zealand. This program, designed to simplify and attract high-value investors, offers two investment pathways: growth and balanced.
The growth category requires a minimum investment of NZD $5 million over a 3-year term, with just 21 days of presence in the country, making it more accessible for investors. On the other hand, the balanced category, with a minimum investment of NZD $10 million over a 5-year term, has stricter presence requirements, with applicants expected to spend 105 days in the country during that period.
Investments under the AIP program must primarily focus on managed funds, equities, bonds, and liquid holdings. For on-call investments, at least 75% of the committed funds must be held in acceptable bonds or equities, while the remaining 25% can be kept in liquid forms such as New Zealand bank accounts or term deposits.
Notably, the program, which does not qualify investments in residential property, has seen significant investment inflows. Reports suggest that NZD $25 million has been raised in just two months, with a pipeline worth approximately NZD $1 billion, reflecting renewed confidence and streamlined processes.
The top source countries for applications under the AIP program are yet to be specified in the available data. However, it is known that the US, mainland China, and Hong Kong have submitted the highest number of applications, with the US leading with 85, followed by Hong Kong with 24, and mainland China with 26.
The AIP program allows foreign investment in New Zealand, excluding residential property. It is aimed at foreign investors who wish to invest in New Zealand businesses or managed funds. Those whose applications are approved will be able to buy homes for their own use.
It is important to note that the AIP program does not qualify investments in residential property. The focus remains on managed funds, equities, bonds, and liquid holdings rather than direct property investment for visa qualification.
The government-recognized AIP advisory and fund manager is based in Tauranga, north of Wellington. As the program continues to attract high-value investors, it is expected to contribute significantly to New Zealand's economy.
Business owners and finance enthusiasts may find the Active Investor Plus (AIP) program appealing, particularly due to its focus on managed funds, equities, bonds, and liquid assets, and its potential for contributing to New Zealand's economy. The growth category of AIP, requiring a minimum investment of NZD $5 million over a 3-year term, offers a more accessible route for investors with relatively fewer presence requirements in the country, while the balanced category, needing a minimum investment of NZD $10 million over a 5-year term, has stricter presence requirements.
