The right information for buying a property in New Zealand

Buying a property in New Zealand is a big step. At Independent Agent, we make it possible for your home buying journey to be a great experience. Here you will find resources on the property buying process, buying your first home, buying at auction and a handy home buyer’s checklist.

Of course your personal situation is unique to you, so if you have any questions on the best place for you to start, don’t hesitate to contact us.

Contact Us 
Checklist

When going through an open home, keep this list in mind

When buying a home, there is a lot to consider, and it’s easy to forget exactly what you should be on the lookout for. These are just a few considerations to look into when going through an open home. After inspecting a property, continue to do your due diligence. Start to research any areas you’re still unsure of, and if you do decide the home is the one for you, enlist the help of independent property inspectors to cast a professional eye over the property.

  • The dwelling's structure

    Pay close attention to the physical condition of the property. Look for:

    • Poor construction
    • Wet spots on walls or ceilings
    • Cracks in the foundation
  • The neighbours

    The immediate surroundings and the people living nearby can significantly affect your living experience. Consider:

    • Are neighbours’ yards neat and tidy?
    • Is there evidence of problem pets?
    • Do you have a comfortable level of privacy?
  • The location

    The home’s location plays a critical role in its value and your daily life. Check:

    • Is the property on a busy road?
    • Is the property next to a retail or commercial space?
    • Is the property right next to a train line?
    • Are there power lines over the property?
    • Is the property close to schools?
    • Is the property on a flood plain?

BUY WITH INDEPENDENT AGENT

Purchasing a property in New Zealand is a significant milestone. Our team at Independent Agent are here to ensure your home purchasing journey is smooth and enjoyable.

In the below guide, you’ll discover helpful resources covering everything from navigating the property buying process to purchasing your first home, buying at auction, and even a convenient home buyer's checklist.

We understand that everyone’s circumstances are different. If you have any specific questions or need guidance on the right starting point for your journey, feel free to reach out to us.

  • Financial Considerations
    • Deposit Requirements: Most banks in New Zealand require a minimum deposit of 20% for a residential property purchase. For first-home buyers using the First Home Loan scheme, the deposit can be as low as 5%.
    • Mortgage Pre-Approval: It’s a good idea to get mortgage pre-approval before house hunting. This gives you a clear understanding of your borrowing limit and strengthens your position when making an offer.
    • Loan-to-Value Ratio (LVR) Restrictions: Banks follow LVR rules, limiting how much they can lend in relation to the value of the property. These rules vary depending on whether you’re buying a home to live in or an investment property.
    • First Home Grant: If you’re a first-home buyer, you may be eligible for the First Home Grant (formerly HomeStart Grant), which provides up to $10,000 per person for a new build and up to $5,000 for an existing property.
  • Property Search
    • Real Estate Websites: Property listings in New Zealand are commonly found on websites like Trade Me Property, Realestate.co.nz, and OneRoof.co.nz.
    • Open Homes: Attending open homes is a common practice in New Zealand. Most properties are showcased during weekends, allowing potential buyers to inspect them in person.
  • Legal Considerations
    • LIM Report: A Land Information Memorandum (LIM) report provides important information about the property, including zoning, permits, and any outstanding building consents.
    • Building Inspection: It’s recommended to get a building inspection to identify any potential structural issues before finalising the purchase.
    • Solicitor/Conveyancer: You’ll need a solicitor or conveyancer to handle the legal aspects of the transaction, including title transfer and reviewing legal documents like the sale and purchase agreement.
  • Types of Property Ownership
    • Fee Simple: The most common form of property ownership in NZ, where you own both the land and the house.
    • Unit Title: Common for apartments, where you own your unit but share ownership of common areas like driveways, lifts, and hallways.
    • Leasehold: You own the building, but the land is leased. Be sure to check the length of the lease and any fees associated.
  • Buying Process
    • Making an Offer: Offers in NZ are typically made using a Sale and Purchase Agreement, and can be either unconditional or conditional (based on finance approval, LIM report, etc.).
    • Auction Sales: Auctions are common in New Zealand, especially in competitive markets. If you win at auction, your offer is unconditional, meaning you can’t back out without losing your deposit.
  • Costs Involved
    • Deposit: Typically 5-10% of the purchase price is required as a deposit when signing a sale and purchase agreement.
    • Legal Fees: Expect to pay legal fees for conveyancing, generally ranging between NZD $1,500 to $3,000.
    • Mortgage Repayments: Understand what your mortgage repayments will be and how interest rates may impact your monthly budget.
    • Rates: Property owners in NZ pay annual council rates, which vary based on the location and value of the property.
    • Insurance: You’ll need home insurance and possibly mortgage insurance to protect your investment.
  • Foreign Buyers
    • Overseas Investment Restrictions: Non-residents may face restrictions when purchasing residential property due to New Zealand’s Overseas Investment Amendment Act. Foreign buyers need approval from the Overseas Investment Office (OIO) in most cases.
  • KiwiSaver for First-Home Buyers
    • KiwiSaver Withdrawals: First-home buyers may be able to withdraw their KiwiSaver funds (excluding the $1,000 government kickstart) to use as part of their deposit.
  • Tax Considerations
    • Bright-line Test: If you sell a residential property within 10 years of purchase (except your primary residence), you may have to pay income tax on any capital gains.
    • Investment Property Taxation: If you’re purchasing an investment property, be aware of tax obligations, including claiming deductions for property expenses and understanding tax laws related to rental income.
  • Regional Variations
    • Auckland vs Regional Areas: Property prices in Auckland are significantly higher compared to regional areas like Wellington, Christchurch, or Dunedin. Regional markets may offer better value but also less competition in some cases.
Visit FAQs PageContact Us

This list provides a good foundation for someone looking to buy property in New Zealand, covering financial, legal, and market-related aspects of the process, but should not replace legal advice.  We recommend you seek legal advice to satisfy your own peace of mind.