Buying property in New Zealand

Buying and selling property in New Zealand is a surprisingly simple and inexpensive process. The vast majority of property in New Zealand is sold through real estate agents. A good agent will work with you to find the right property – taking you through the process in a professional manner.

Frequently asked questions:

What is the property purchase process in New Zealand?
Many international purchasers are surprised when first buying property in New Zealand how easy the process actually is. You don’t even have to be a resident to buy property. Once you have agreed on the conditions of the sale with the seller (such as a price and a time frame), this is drawn up in a contract. Once any conditions are met (typically within five -10 working days), the contract goes unconditional. A deposit is then payable (generally 10% of the purchase price) and both parties are committed to the sale. Once the agreed ‘settlement date’ is reached and the respective solicitors confirm all terms have been met, and that there is clear title, the property ‘settles’ (when the buyer pays the remainder of the purchase price and in return receives the keys for their new property).

How long does it take to buy a property in New Zealand?
Once you find the property you would like to purchase, a sale can typically be transacted and you can be living in the property within four to six weeks. Many people who purchase property in New Zealand choose to take short-term accommodation such as a serviced apartment or short-term lease to give them time to have a good look around before they buy. Some properties may take longer due to the complexity of the transaction or the need for approval to purchase ‘special’ land.

How much should I expect to pay for a property in New Zealand?
As with any country, prices vary considerably around New Zealand – from major metropolitan cities to regional or provincial towns, from beachside suburb to entry-level housing. You can find latest property research reports on our website as well as a selection of recent sales to give you an indication of what New Zealand property is worth.

How do I find a property in New Zealand?
The web is a great place to start your search process. www.bayleys.co.nz lists more than 5,000 New Zealand properties. You can use the site’s search function to narrow down your selection criteria and find your dream home or investment property. You can then contact the agent marketing the home for additional information.

Agents are here to help you with the process. As a purchaser, there are no fees payable to agents for this help – estate agent commissions in New Zealand are typically paid by the seller.

Are prices clearly indicated on all property for sale in New Zealand?
There can be significant variations in property values from one property to another within the same street, let alone within the same suburb, town or city. For this reason it can be difficult to put a set price on a property. However because of the various sale processes operating in the New Zealand real estate market - such as auction, tender, or expressions of interest – it is commonplace that prices may not feature on all listings.

How do I apply for a mortgage in New Zealand?
Banks and financial services organisations in New Zealand offer a wide range of mortgage options and combinations, which can be tailored to your individual requirements. Bank processing of mortgage applications is highly efficient, and mortgage finance can be arranged within as little as 24 hours – with most major banks even providing ‘mobile lending managers’ who will come out to visit you in your place of work or residence (in New Zealand, that is).

The value of your mortgage and rates of payment are dependent on your financial circumstances such as savings, earnings, existing assets, and outgoings. As a guideline, mortgages are usually capped at 95% of the property’s sale price. New Zealand’s mortgage market is highly competitive and it is well worth shopping around for the best deal, as banks will offer a range of added-value incentives to secure your custom.

Can I rent a property when I arrive in New Zealand?
Absolutely! Just like the real estate market, there are all types of rental property available in all locations - from inner-city apartments in the major metropolitan centres, through to beachside mansions and even rural properties deep in the countryside. Prices vary accordingly – taking into account such primary factors as location and size. Factors such as proximity to transport, shops and schools, as well as the general feel of the neighbourhood, also need to be taken into account. Most rental properties are unfurnished apart from an oven, laundry facilities and basic chattels such as curtains and carpet. However, there are fully furnished properties on the market, and your rental agent can access these on your behalf. Demand for good quality rentals is always high. It may take some time to find a suitable property, and as a result it is best to make your moving decision quickly.

Article provided by Bayleys

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