If you’re returning or moving to New Zealand from the UK, you may be considering buying property sooner rather than later.
In the second of our three-part series on Looking for a home in New Zealand, we talk about some key things to know when buying your first home. Not ready to buy yet? Then you may find our recent guide to renting in NZ quite helpful. Also, watch this space for our third guide, focusing on investment properties.
Remember, we’re here to help: While our team at Pension Transfers don’t provide advice on mortgages, property investment or renting, we have long-standing partnerships with experts in these areas who can help you make informed decisions along the way. And of course, if you’re considering a UK pension transfer to New Zealand, get in touch: we have over 20 years’ experience in assisting returning New Zealanders and UK ex-pats with this complex and often lengthy process.
1. Familiarise with the property market
Over the past ten years, house prices have been on a steep growth path, so make sure you set your expectations appropriately before kicking off the house hunt.
If you’re not familiar with the local housing market, educating yourself on how the market works and keeping up to date with the latest data is crucial. REINZ’s monthly residential market data is a good place to start, as well as TradeMe Property, QV and CoreLogic.
2. Work out your budget
Once you have an idea of what the market looks like, you can start taking a good look at your budget and identify areas that are within your price range.
You may want to talk to a mortgage adviser early on, to understand what your options for finance are, how big a deposit you may need, and also how much you might be able to borrow, based on your financial circumstances.
3. Find listings
So, you know how much you’re comfortable spending? Then it’s time to narrow down your search. Once again, you’ll find property listings on websites like Trademe.co.nz, Oneroof.co.nz and Realestate.co.nz, as well as on the real estate agencies’ websites.
4. Research properties
If you’ve found a property you’re interested in and would like to gather more information about it, Homes.co.nz is free to use. Simply enter the property address to view property estimates, capital valuations, past sales data, and council records. You can also do a search by suburb or city.
5. Attend open homes
Attending open homes is one of the most fun parts of buying a home, but it can also be quite stressful. With a shortage of property supply in most regions, be prepared to compete with other buyers for the same homes.
While anecdotally some returning Kiwis are buying property sight unseen, purchasing without looking is not for the fainthearted. Remember, photos don’t necessarily show the ‘whole picture’ (no pun intended). Seeing a property in person will give you an opportunity to really have a feel for it and notice potential issues. Plus, you can ask the agent as many questions as you like.
Whether you’re buying sight unseen or not, make sure you have a strong support team in your corner, including a mortgage adviser, a lawyer, and a builder.
6. Get a builder’s report
While not mandatory when buying property, if you find a house you like, getting a builder to inspect it inside and out makes good sense. For the cost of a few hundred bucks, a builder specialising in building inspections can assess that the property is structurally sound and there aren’t any hidden issues with it.
Click here to find out more about building inspections. You can also use Settled.govt.nz’s Property Checker to highlight potential areas to research further: for example, if the house was built between the late ‘80s and 2004, check that it’s weathertight to avoid buying a ‘leaky home’.
7. Do your due diligence
Are you satisfied with the builder’s report? Before making an offer, make sure you read the official documents about the property (e.g. LIM report, title search etc.). Importantly, get a lawyer to check that there are no hidden legal issues involved: they will be able to explain this part of the process in more detail.
8. Make an offer
Have you sorted out your finance, either directly or through a mortgage adviser? Have you researched the property thoroughly? Then, you may be in a good position to make an offer.
In New Zealand, there are essentially four selling methods – auction, tender, deadline and negotiation. It’s a good idea to understand early on what each of these methods entail: click here to learn more.
Like to make New Zealand ‘home’?
As you can see, there’s a lot to unpack. Buying a house is a complex and often daunting process, but taking that first step onto the property ladder can also be very rewarding. So get a support team, wear a pair of comfortable shoes, and be prepared for an interesting ride.
And if you’re moving (or have moved) to New Zealand from the UK, keep us in mind: we’re UK Pension Transfer specialist. Click here to learn why early planning is key when pondering a UK Pension transfer, or give us a call on 0800 UK 11 NZ if you have any questions.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Past fund performance is no guarantee of future returns.