Guide to Buying a House in New Zealand: A Beginner's Manual

So, you’ve decided to buy a house in New Zealand. Congratulations!
You’re about to enter a journey filled with open homes, awkward small talk with real estate agents, and the emotional rollercoaster of falling in love with a house that someone else buys first. Fun times.

But don’t worry — here’s a step-by-step guide that keeps it simple (and sanity-friendly).

1. Figure Out Your Budget (AKA Reality Check Time)

Before you start planning your Pinterest mood board, it helps to know exactly what you can afford.
Sort out these basics:

Deposit: Most lenders require at least a 20% deposit. Yes, it’s a lot. Some first-home schemes allow less, but the bank may require the bank valuation to be higher than what you're paying for the house.

Pre-approval: Talk to a bank or mortgage broker to get a home loan pre-approval. Mortgage brokers are free in NZ (they get paid by the bank), and they can simplify your life significantly.

Extra costs: Consider additional costs such as Lawyer fees, Building and Inspection Report, LIM (Land Information Memorandum) Report, Council Rates, Home Insurance… basically, all the “surprise” bills adulthood likes to throw in.

Calculate approximate mortgage repayments at different interest rates. Once you see the numbers, take a deep breath. Then another one.

2. Decide Where You Want to Live

This part requires deep reflection (and maybe Google Maps)! Ask yourself:
Do I want to hear tui birds… or traffic? Do I want quiet, suburb, or city life?

How long am I willing to sit in traffic before I lose my will to live?? Do I need to be near work, family, transport, good schools?

If schools matter (now or later), check zones.
If lifestyle matters, consider proximity to parks, lakes, beaches, or your favourite café.

When we were house hunting, we didn’t have kids yet — but we still considered school zones because we knew it would matter down the line. We also wanted to be near the lake, close to work, and in a safe neighbourhood. I even checked recent crime stats… because porch furniture deserves safety too! Thankfully, we're in the province, so these were all achievable. 

Also, understand property types:
Freehold - You own everything (land and house). The most straightforward.
Leasehold - You own the house but pay rent for the land. Like owning a car but paying to park it forever.
Cross-lease - Shared land. Need neighbour approval for changes. Can be fine — but do your homework.
Unit Title - Apartments/townhouses. Comes with body corporate fees and occasional group emails about rubbish bins.

If unsure, ask your lawyer to explain. A good lawyer is worth gold here.

3. Start House Hunting

This is the emotional part.
Where to look:
Trade Me
Real Estate
And open homes - Do not be afraid to bring a measuring tape!

Just remember:
Real estate photos are basically Instagram filters for houses.
Rooms are not that big. Wide-angle lenses are liars.

4. Do Your Homework (Yes, More Adulting)

Before making an offer, check the house’s actual condition.
You’ll need:
LIM report - Council info. Is the land okay? Is the deck legal? Is the house secretly sitting on future-swamp?
Building inspection - Finds leaks, rot, and other surprises.
Insurance - Some areas are high-risk (earthquakes, floods, etc).

If something feels off?
Walk away. There are always more houses!

5. Making an Offer

There are a couple ways this goes:

Private Sale/Deadline Sale
You can negotiate, and add conditions.
Your lawyer reviews the Sale & Purchase Agreement.
Offer can be conditional (e.g., depends on finance approval, building report, LIM, etc.).

Auction
No conditions allowed.
You must do all checks before bidding.
Try not to sweat visibly.
Bid with confidence (or pretend to).
Emotion management required. Deep breaths help.
We’ve been through both.

At our auction, we actually had the highest bid — but we did not met the reserve price (the sellers wanted $40k more). So we walked away empty-handed and lighter in the wallet, because we’d already paid for the building inspection and lawyer review, even before winning the house.

If possible, lean toward Private or Deadline Sales, where you can make a conditional offer. (Example: X purchase price conditional to financing, building report, LIM, for solicitor review within Y number of working days.)

6. Settlement Day

Once everything is signed and paid.

Your lawyer transfers the funds.
The property gets registered under your name.
You get the keys.

This is followed by:
Realising you need curtains.
Realising curtains are expensive.
You go to Bunnings multiple times in one weekend.
Welcome to homeownership.

Final Thoughts

Buying a house in New Zealand isn’t just a financial decision — it’s a journey of patience, spreadsheets, and emotional stamina. But you don’t have to rush. Take your time, learn the process, ask dumb questions (everyone does), and trust that the right place finds you too.

Once you’re settled in, sitting on your deck, or lawn, or concrete patio, or just the floor while you wait for furniture, it’s worth it.

You did it. You’re a homeowner.
Now go find a drill. Or call someone who owns one!