Home Property in New Zealand
How to buy a house in New Zealand?
Here you will find the detailed information about real estate purchasing in New Zealand:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in New Zealand;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in New Zealand and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
You can leave a comment and give advice to other visitors planning to buy a home in New Zealand.
Detached houses remain the primary option on the real estate market of New Zealand. Until recently, almost any owner of a private house could easily keep a small garden, but now only wealthy people or citizen of provincial towns can afford such a luxury.
Housing prices vary considerably based on the building quality, the area of attached land, location, interior decoration, availability and size of garage and utility rooms and a variety of other factors. Beside all the other conditions, the number of storeys does not have a significant influence property value.
House size in New Zealand, just as in many other countries, is mainly determined by the number of bedrooms, rather than rooms in general. A regular house with three bedrooms usually has a kitchen, a dining area (often combined with the kitchen), a living room, a toilet (sometimes more than one), a laundry room or utility room.
Nearly every house is provided with water supply and electricity systems. Gas supply may not be available; however, the owner can easily solve this problem, in case you are interested. Many houses, especially in the north of New Zealand and small towns, feature swimming pools.
The second most valuable property in New Zealand is the so called townhouses, which are usually small houses, combined into one building. Any such house has a separate entrance and a little land lot (which is often just a lawn) in front or behind the house.
In spite of their size, townhouses may cost just as much as fully detached ones. The thing is that they are often built in resort zones or places with extremely high land value. Quality of life in such houses is no worse than in big mansions and may be even higher than quality of life in a flat.
Apartments in New Zealand take up a small share of real estate market. It may seem strange, but local apartments are often synonymous with either very cheap or very expensive housing. New-built tower blocks, located in major cities’ downtowns as well as New Zealand resorts, offer apartments that cost no less than an average house. At the same time, apartments in other buildings may as well offer affordable lodging for students or people with low income.
Execution of property sale and purchase agreements
According to the law of New Zealand, all property sale and purchase agreements are only valid if made in writing. It is common practice to apply a standard form, drafted by the Real Estate Institute of New Zealand and the Legislative Assembly of Auckland. It is designed in order to solve any legal issues that may arise during the transaction process, ensuring its satisfactory execution for both parties.
In order for contractual requirements of both parties to be fully observed, a contract should include particular terms and conditions:
Financing. According to the contract, buyer has some time in order to confirm and transfer the transaction amount to seller. Under any circumstances, payment end date should be specified. Buyer’s lawyer can also submit an application for deadline extension before the specified end date.
There may be some cases, when a buyer needs to sell his or her property prior to purchasing the new one. Fulfillment of this stipulation may also require some time. In such a case, parties negotiate specific terms, so that buyer has enough time to sell previous property. Under such conditions, there is a possibility of deal cancellation. While the purchase process continues, the seller may consider other, possibly more competitive offers.
Property assessment. If the price has not yet been agreed upon, buyer may inspect and carry out an assessment of purchased property. For this reason, construction workers, electricians, plumbers or professional assessment officers can be hired. Before proceeding with the assessment, all aspects for examination should be specified in the contract.
Subsequent actions of the parties. When all the terms are fulfilled, the agreement becomes binding and absolute. The transaction must be carried out strictly under the terms of the signed contract. At this moment, a deposit payment has to be made. In case the deal involves a third-party participant (such as a lawyer or a real estate agency), the deposit has to be transferred to a trust account for the period of ten days. Yet, if buyer is satisfied with purchased property, it is also possible to skip all the arrangements and enter into a binding agreement directly with the seller. Having signed the binding agreement, buyer should pay a deposit. The deal has to be closed on the day specified in the contract, with the remaining amount already transferred to seller’s account. In order to sell real estate in New Zealand, the seller must present a document, confirming their title of ownership.
Closing the deal. On the final day of contract execution, the value of purchased property has to be paid in whole. The remaining amount is usually transferred to seller by a lawyer. Buyer receives the keys to new property and becomes it rightful owner. All the legalities (such as money transfer, title of ownership transfer, etc.) are handled by a hired lawyer.
Additional expenses. Real estate acquisition in New Zealand involves moderate expenses. Lawyer’s fee is about 200–400 Euros and may vary depending on a region. Any required assessments of property are covered by the seller.