Buying a Property in New Zealand

New Zealand retains its position as one of the most desirable countries in the world in which people wish to live, work or retire - and as a result the number of applications received in recent years by the New Zealand immigration service has surged as has the number of investors and purchasers entering the country’s real estate marketplace.

Buying a property in New Zealand can represent an excellent investment opportunity for those who wish to tap into the increasing demand for accommodation across the country and this is a guide to the property hunting and buying process in New Zealand for international property investors.

For all those who wish to own real estate in New Zealand as an investment it is of course neither necessary to be in the country to hunt for property nor to purchase it.  However it is important for any buyer to get a good feel for the specific location in which they are considering purchasing. 

As is the case with all property markets, different areas of New Zealand are more or less popular with home seekers and properties in a given location are valued accordingly.  By spending a certain amount of time doing due diligence on the country and then a specific part of that country an investor can determine what his or her budget will comfortably afford them, what property types are most in demand as rentals or resales and where to look for the right type of property to suit specific investment objectives.

With a clear idea of which property types and which areas of the country suit the investor clearly identified, the next step is to find a reputable estate agent to assist with the search for the best property to purchase.  An agent will be able to supply an investor with details of properties that may suit and to arrange viewings or, if the purchaser is not in the country, to arrange to view the property and report back answers to any specific questions raised by the potential buyer.

Once a suitable property has been targeted an investor needs to determine whether the property is going to auction or being offered for sale at a fixed price.  If the former situation is the case the buyer can make an offer to purchase before the auction takes place but they have to be in a financial position to honour that offer within days if it is accepted as such an offer is taken as if it were made at auction.  An offer should only be made once all inspection reports and title searches have been conducted satisfactorily by the buyer’s solicitor.

If the property is for sale at a fixed price an offer can be submitted which, if accepted, can be conditional to satisfactory searches, surveys and inspection reports being completed.  A purchaser in New Zealand should budget for an additional 5% of the purchase price to cover all purchase related costs and fees.