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Buying Property in New Zealand's Cities

The majority of those under retirement age who immigrate to New Zealand head for the suburbs of cities like Auckland, Christchurch and Wellington. It is in these cities that the majority of job opportunities can be found and where the social side of life in New Zealand really comes alive!

This article focuses on buying property in New Zealand and in particular in its main cities of Auckland, Christchurch and Wellington.

With over three quarters of New Zealand residents owning their own homes the entire property buying process in the country is sophisticated and geared to smooth running as are the mortgage arrangement processes.

The first thing to note is that foreign residents do have a restriction placed upon them in terms of the size of a plot of land that they can purchase. The restriction isn’t so bad though as the piece of land on which the property stands cannot exceed 4,074 square meters unless you have obtained the express permission to purchase a larger plot from the District Land Registrar.

If you’ve immigrated to New Zealand and are therefore counted as a citizen or resident of the country you don’t have to worry about this restriction and you’re free to purchase whatever you want! In the suburbs of the cities, in the towns, villages and more rural areas of New Zealand expect to find houses constructed from clapboard, weatherboard, tin etc., the methods of construction differ greatly to what Europeans are used to in particular but tend to suit both the climate in New Zealand and the economy.

In the cities of Wellington, Christchurch and in particular Auckland, building methods are similar to what you’d expect to see in any other major world city as buildings are often high rise in construction and tend to be packed in and more densely populated. Outside the cities people tend to live in large houses on expansive plots of land, in the more densely populated towns and cities apartment living is popular. Auckland is the most expensive city in New Zealand but it also has a lot of potential for any property investors out there! With the massive growth in both employment and student numbers in the city the demand for quality rental accommodation in Auckland has gone through the roof. Quite simply demand is massively outstripping supply right now and there is room to profit in the buy to let market in New Zealand’s largest city.

Because Auckland is such a prosperous city it has enjoyed a very healthy 12% rise in property prices over the past couple of years. This has been fuelled by the fact that the city is growing economically and attracting more inward migration this rise in property prices is set to continue at least for the short term.

Christchurch property prices are a lot cheaper on the whole and have slowed down from their peak at the turn of the Millennium, they are now rising steadily as demand for property in Christchurch remains steady. The majority of those attracted to this city are drawn to its location and proximity to beaches, vineyards etc., and because it is quite simply one of the nicest locations in New Zealand in which to live.

Wellington is New Zealand’s capital city and as a result there is a lot of business and commercial activity in the city that attracts workers from across the country and beyond. Property in the city is desirable, rental accommodation is tricky to source and on the whole the real estate market in Wellington is strong with international investor confidence at an all time high.

If you’re interested in a particular property for sale in New Zealand it’s usual to make an offer in writing to purchase the property at a given price. This formal offer can be accepted conditionally by the vendor at which time all surveys, searches and pest inspections are conducted. If these processes are concluded satisfactorily you then agree the purchase price formally with the vendor, sign a contract to purchase and part with a non-refundable 10% deposit.

If you need a mortgage to buy you can borrow up to 90% of the asking price although the amount you can borrow will be restricted by your income and outgoings and your mortgage repayments must never exceed 30% of your disposable income. Once you have finance arranged and you move towards the completion date you’ll be required to make final payment and register as the new owner of the property.