Buying a Property in New Zealand
Articles > Buying a Property in New Zealand
There are many different styles of property in New Zealand but some of the descriptions may be unfamiliar to you, so here’s a guide: –
What to do once you’ve found your dream house
It’s really important that you get an accredited property inspector to produce a property inspection report, so you don’t get any financial surprises after you’ve moved in. This report will include things such as signs of damp, conditions of boundary fencing, roofs, wiring and plumbing and retaining walls.
Financing your Purchase
An excellent way to show you are a serious buyer is to get conditional pre-approved finance from your chosen financial institution (usually free and valid for 3 months). Also, this is needed if you intend to buy at an auction.
Most financial institutions in New Zealand insist on a 20% deposit for first time home buyers: 30% in Auckland. As you’ll have no credit rating in New Zealand, it’s important to bring documents from countries where you’ve owned property, which show you have a good credit rating and have never defaulted on a loan.
Once you have found your property, your bank will need to know the details of the property you are buying before they confirm your loan. They will also insist that insurance is in place before the settlement date.
The Sale and Purchase Agreement
This is the contract between you and the seller. It’s important to employ a lawyer to see you through the whole process. Before signature, any conditions in the sales and purchase agreement can be negotiated, after signature, you and the seller are bound by any conditions within the agreement. Once the conditions are met, then the agreement becomes unconditional. A deposit is paid either on signature of the agreement or when the agreement becomes unconditional.
Buyers are given the opportunity to inspect the property shortly before the settlement date. This gives you the chance to ensure the property is still in the same condition as when you first viewed it and also to check that any conditions in the sale and purchase agreement have been met.
Fast Process and Additional Expenses
Once your offer has been accepted, it only takes three to four weeks to complete. Beware that there are many additional expenses to take into account: –