BUYING A HOUSE CHECKLIST
By Trish Willis | Member of the Property Institute of NZ (IPAC)
This home buying checklist provides both seasoned and first home buyers with vital information about getting building reports, paying deposits, checking wiring, insurance, tax, legal advice, meth testing, Government schemes and much more.
It centralises the most trusted advice from multiple Government sources and NGOs, which all have a role in guiding you on what to look for when buying a house. It's all here on one page for your protection.
How much does it cost to sell a house?
Things to look for when buying a house
Non-disclosure of property problems by vendors and/or real estate agents continues to be an issue so it's important to know what to look for and what to be wary of.
Things to look for when buying a house will vary from property to property. Variables include age, cladding, zoning, property alterations, leaky home risk, whether an apartment, lifestyle block or section, or your first home or a mortgagee sale. Learn more about buying different property types here.
- DOES IT NEED WIRING? - Find out how to tell if a house needs rewiring. A super-easy checklist of things anyone can look for when viewing properties.
- HOW MUCH IS THE HOUSE WORTH? - The real estate agent selling the property can provide you with a list of recent sales at no cost to you - just ask. If in doubt, obtain a full property valuation from a registered property valuer.
- CAN YOU INSURE IT? - House insurance seems harder to get these days so don't assume you will automatically be covered. Check with your lawyer whether you need to add this as a condition of purchase. Electrical wiring pre-1935 may require a Warrant of Fitness for getting insurance cover.
- SHOULD IT BE METH TESTED? - Check that the property has not been exposed to methamphetamine production. You can add this as a condition of sale but a report conducted by the Office of the Prime Minister's Chief Science Advisor suggests it is a danger to occupants if used at a high level or is produced at the property.
- GET A BUILDING INSPECTION REPORT - The safest way to get a reliable pre-purchase building inspection is by using a specialist building surveyor. Surveyors who are members of the Building Officials Institute of New Zealand (BOINZ) have undertaken the institute's Accredited Building Surveyors programme ensuring they have passed their accreditation process.
- CHECK IT'S NOT A LEAKY HOME - Use the HOBANZ (Home Owners and Buyers Association) Guide To Buying a Home including its checklist to help ensure you don't purchase a leaker. See the bottom of this PDF for the checklist. HOBANZ also advises on Body Corporates and apartments.
- TRADES SERVICES ADVICE - If you're looking at budgeting for future improvements to the property, use a qualified tradesman and make sure they are registered with governing bodies overseeing standards, quality and training of their members. You can find advice about how to find a tradesmen here.
- PRE-SETTLEMENT CHECK - Make sure any building work that has been agreed by the seller to complete prior to settlement is actually done and done to industry standard.
- USE A PROPERTY LAWYER - Things like driveway easements, tree covenants, boundaries, Title, LIMS, PIMS should all be checked by a lawyer as should all your sale and purchase documentation. Not doing so puts you at risk.
Find out how to find a trustworthy property agent
How much deposit do I need to buy a house?
Amidst all the excitement of buying a new house, it is easy to get swept up and lose your perspective.
This is particularly likely when there are multiple buyers competing for the same house and you are hurrying to get the deal done quickly.
Sorted Mortgage Calculator a handy tool
If you want to assess your financial position first, Sorted has mortgage advice and tips. If you have your eye on a house, but aren't sure whether it's in your ball park or not, you can run some figures through the Sorted Mortgage Calculator.
Alternatively, visit your bank or mortgage broker and do yourself an honest household budget. Just because they will loan you the money doesn't automatically mean you can afford it for the long haul.
- TAX - Check the IRD to see if you need to pay tax. There will be varying advice depending on whether the house you are buying is a rental investment, a holiday home or for yourself to live in.
- LIFE & LOSS OF INCOME INSURANCE - It is likely you are going to need other insurance as well, for instance, loss of income, life, contents or otherwise. Insurance can help you cover any mortgage payments if you are unable to work and can be a condition of getting a mortgage from a bank.
Do you need to sell your house quickly? Find out how
Tips for first home buyers
Government schemes overview
You may be able to get government help to buy your first home if you’re a KiwiSaver member, a Kāinga Ora tenant and wish to buy the house that you live in, or are Māori and want to live on your ancestral land.
First Home Grant - If you're a first-time home buyer, or a previous home owner and you've been making regular KiwiSaver contributions for three-five years, you may be eligible for a First Home Grant of $5000 or $10,000 for couples.
KiwiSaver first home withdrawal - You can apply to withdraw money from your KiwiSaver to put towards buying your first home if you‘ve belonged to your KiwiSaver scheme for at least three years. You can withdraw your savings except for $1000 which must be left in your KiwiSaver account.
First home loan - With a First Home Loan (previously Welcome Home loan), you might be able to get a home loan with only a 5% deposit. How much you can borrow depends on where you live in New Zealand and what you can afford.
Kainga Whenua Loans For Individuals - You can borrow money to build, buy or relocate a home on your ancestral land.
Help to buy a Kainga Ora House - If you’re an existing tenant in a state house you can buy your home if it’s available for purchase.
Steps to buying your first home in NZ
Defects disclosure and conflict of interest checks
When buying a house in New Zealand, the real estate agent selling the property is obliged under the Real Estate Act 2008 to disclose to you any information they have been advised of, or made aware of by other means, if it may affect your decision to purchase.
That includes establishing if the real estate agent has a conflict of interest in the property. If you are in doubt, ask the agent outright if they know the buyer personally in any way and tell your lawyer.
If a company name is the purchaser on your sale and purchase agreement, you can check to see who the directors and shareholders are.
The Real Estate Authority has a range of guides, resources and downloads - all free and designed to inform and protect home buyers.
HOBANZ protects buyers
HOBANZ was set up by home buyers who were victims of leaky apartments so the association can provide reliable experts, services and advice.
House Inspection Checklist
If you're serious about buying a property, you can download a comprehensive property inspection checklist from Consumer NZ.
Consumer NZ also recommends paying attention to:
- protection orders on trees and buildings
- zoning restrictions
- property title caveats
- sewer or septic tank?
- talking to neighbours about any plans that may affect you
- is the property likely to flood in heavy rain?
Renovating a bathroom or kitchen?
Legal Advice For Buying A House
Buying a house can often seem straight forward on the face of it, but lawyers have a completely different perspective and will identify issues that when addressed will protect you.
Here are some examples of legal documents required for a property sale. Your lawyer should cover these with you.
Protect yourself when buying a house by using a property lawyer
You might also like:
- How to get a free property appraisal to sell first
- Conveyancing protects buyers and sellers
- Check before you sign a sale and purchase agreement
Wise Up NZ Awarded Most Reputable Property Advice Hub NZ 2021
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
Page updated December 1, 2022 by Trish Willis | Member of Property Institute of NZ (IPAC)
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