Property Buyers Guide to New Zealand

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Guide to Buying Property and Real Estate in New Zealand

Buyers Guide Overview

Buying a property in New Zealand can be both rewarding on a personal level as well as an investment level so long as you follow some basic rules. The legal process is not complicated but it there to protect everyone so please read on below and do not hesitate to contact us should you require any further details.

Purchasing Procedure - Sourcing Suitable Properties

Our agents negotiate the best possible set price with the developer for our clients on properties which meet our strict criteria. This ensures that our clients are offered below market or at market property prices. These are then offered first to our members (ie you) via our newsletters and property updates.

Reserving a Property

If you are interested in a property most agents have the ability to reserve it for three days with no obligation to invest. This effectively takes the property off the market while a decision is made on continuing the purchasing process.

We understand that the three day period is necessary for us to make contact with you to talk through further details about the investment choice you are making. Being an overseas investor this time is essential for you feel comfortable and confident with your investment and understand the process from here on out.

Sales and Purchasing Agreements and Due Diligence

When a decision has been made to proceed with the purchase of a property your agent will take you through the purchasing contracts called a Sales and Purchase Agreement in NZ. The contracts are sent to you for review and signing, and then sent back to be counter signed by the vendor.

For your piece of mind all of our contracts carry a clause stating that for what ever reason you can terminate the agreements within 10 business days, with no obligations. This stage of the process is known as due diligence. At this stage your New Zealand lawyer reviews all documents. Whilst this is taking place you may also need to liaise with a New Zealand mortgage consultant to discuss financing options for the settlement of the property


At the end of the 10 business days due diligence period, your lawyer will confirm that you wish to proceed. You are then required to pay the necessary deposit which is usually 10% of the purchase price of the property. The remaining transaction payment is required at settlement or upon completion of the property.

It’s important to note that in New Zealand deposit monies never go to the vendor or developer until completion/settlement of the property. All monies are held in a Trust account and at no stage can a developer access this money until settlement. It provides piece of mind for purchasers knowing that their money is safe and secure during the build process. If for whatever reason the development does not get completed the 10% deposit monies are returned to the purchaser.

Construction and Settlement

During the construction of you investment our agents will keep you updated with photos and commentary.

If you are looking to source financing in New Zealand or by Multi-currency lending, three months before completion of the property our Mortgage Consultant will initiate financing process with you.

Around two months before completion we will put you in contact with a local property management group who will look after your investment and find suitable tenants.

Upon completion we can organize an independent building inspector to view your property and give you feedback. Once everything is satisfied and all requirements have been met, you pay the remainder of the contract price and your new New Zealand investment is all yours.

Our agents in New Zealand have these steps and systems in place to make sure all clients are happy and confident with their purchase decision before they make their final commitment.

The following expenses are incurred when purchasing a property in New Zealand:

  • Legal Fees - $1,300NZD
  • Valuation on completion - $450NZD
  • Building report - $350NZD
  • Total costs - $2,100NZD

It is important to note that when purchasing property in New Zealand there are no associated stamp duty or mortgage broking fees - if using a New Zealand bank loan.

These costs are seen as relatively cheap when compared with many other countries and should be seen as a major cost benefit when purchasing an investment property in New Zealand.

Buying property requires New Zealand legal representation. Employing a lawyer who's experienced in all facets of New Zealand property law brings confidence to any buying process.

Our agents in NZ understand that many overseas clients don't have access to a lawyer in New Zealand, so we have established relationships with several leading lawyers who understand your needs and concerns as an overseas property investor.

Lawyers associated with our agents offer independent advice on all aspects of property purchasing, ownership structures and associated issues. You will have the opportunity to have face-to-face, phone and/or email meetings with the lawyer of your choice.

One of the most critical parts of transferring ownership of property is the conveyancing. This process includes such things as checking land boundaries, ownership, zoning, and that all renovations or extensions have council building approval. Our lawyers will review and prepare the agreement of sale and purchase prior to signing, along with all the other legal documentation associated with the purchase.

This provides further confidence in knowing the contracts have professionaly reviewed and amendments have been made for the purchasers benefit.

Data courtesy of NZ Property Solutions

Mortgage Options

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