Buying property in New Zealand

Purchasing a house or apartment in New Zealand is a lengthy process, and perhaps the best advice is to not rush into anything. Deciding where you want to live depends on many factors, including commuting time to work, the closeness and quality of schools and whether you want a rural or urban setting. Of course, price will also be a factor.

Where do I start?

Browsing property sites online can be a good way to get a feel for the house prices in the area you are interested in. Real estate offices can also provide you with plenty of information about properties for sale in their region. It may be worth requesting a tour with a real estate agent.

I've found a home I'm interested in – what next?

Research into the home and the surrounding area is the next important step. You can do the first stages of investigation yourself, checking with the agent and the seller about any existing issues with the house. Consumer Online has an excellent checklist that will help you ask the right questions and to know what to look out for.

Getting professional advice

Professional advice may seem expensive, but it can save you a lot of money in the long run. Homebuyers can obtain a Land Information Memorandum (LIM) report from the local council.

This document may cost up to NZ$400 and takes around 10 days to process, but will inform you of any permitted alterations that have been made to the home. It will also contain information such as the area zoning or environmental issues, as well as outlining any proposed changes to the area or the property.

A cheaper option is to request to view the property file at the local council. This will show you the original specifications and drawings. A pre-purchase inspection by a professional building surveyor is definitely advisable, as it will detect any hidden faults in the property.

Making an offer

'Fixed' house prices are usually negotiable, and you can make an offer through a real estate agent. It's worth remembering that the real estate agent has been employed by the seller. Once the buyer and seller have agreed on a price you can opt for the sale to be 'conditional' upon factors such as a satisfactory building inspection or the sale of your existing home.

Remember that when purchasing a home an informed decision is more important than an emotional decision. It's easy to fall in love with a place, but make sure you know the inside story.

It may be also helpful to consult a checklist for homebuyers from the Department of Building and Housing.