10 questions to ask before buying real estate in New Zealand

A real estate purchase is certainly one of the most important expenses you will make in your lifetime.To avoid stress and unpleasant surprises, it is strongly recommended to ask you certain questions before committing to a property.In New Zealand, the steps to be taken to buy real estate are different from those of France.It is therefore important to be well surrounded and advised throughout your purchasing process!New Zealand Services, partner of all your projects in New Zealand takes stock of essential issues before any real estate investment.

During the visit

1 / Is the property part of a condominium?

If you are interested in an apartment, a "Town House" or a "unit", the property will probably be part of a condominium.In this case, remember to ask the minutes of the last three general or extraordinary assemblies of the condominium.This will allow you to know the annual amount of charges and also to find out more about the general management of the condominium.

2 / Is the property healthy?

Real problem in New Zealand: the quality of housing!Before committing to long-term, there are several checks to be done absolutely such as house insulation or humidity.It is also strongly recommended to check if there is a ventilation and/or heating system in place in the property.

3 / Was there any damage on the property?

During the visit of the property, ask the real estate agent if, to his knowledge, there was special damage (fire, water damage, flood, infiltration).The goal is to find out more about the history of the house and to predict any problems to come.

4 / The work carried out on the property was all approved?

Another verification point: ensuring that all constructions and renovations have been carried out according to the rules of the "Council" ("Resource consent" and "Building consent").This can in particular concern the bathrooms, the toilets, the laundry rooms, the terraces, the chimneys or wood stoves ...

It is possible to verify this type of information by consulting the "Property File" of the property with the "Council".

Before making an offer

5 / Have you taken stock of your budget and your borrowing capacity with your bank?

That's it, you have found one or more goods that you like!Before making an offer, it is imperative that you make the point with your bank to know your borrowing capacity.You will need to contact your bank (or more banks) to obtain an agreement in principle on the loan request.

It will also be necessary to ensure that it is sufficient financial contribution (called "deposition").The amount of this contribution is generally 20% of the home purchase price.

6 / Have you found a lawyer to accompany you in the purchase of your property?

A lawyer is a key player in buying your house or apartment.Get closer to a law firm that will accompany you in the legal transaction.

Your lawyer may help you check all the legal documents relating to the property (in connection with the title deed).Do not sign any offer and do not engage on auctions without having seen it beforehand.

Allow around $ 2,500 for legal support on all of the procedures related to a purchase.

"Due diligence" (list of important points to check before purchase)

7 / How to avoid unpleasant surprises when buying a property?

Several approaches can avoid certain disappointments once become owner:

Send all the documents relating to the property that interests you to your lawyer, in particular the "Property File" and the title of property.It is on this last document that he can check if the property offers you full property or if the house is involved in a dispute.Your lawyer can also verify that any work in the house has been done in good and due form (with consent of the Council in particular).

Try to learn more about previous occupants of the property (owners or tenants), the reasons for the sale, or even on relations with the neighborhood.

Order a “Building Report” with a dedicated organization.This document will allow you to have an objective report on the state of the property and to anticipate any problems and work to be carried out.This process will cost you several hundred dollars.

8 / Should we proceed to a "method test" before buying a property?

Contamination of property with metappehetamine is a relatively common problem in New Zealand, which is why some buyers choose to have the property tested before the purchase becomes unconditional.However, the risk of buying a property where "method" would have been produced or consumed in large quantities, is low.

For information, a property tested below 15 micrograms / 100cm2 is considered non -dangerous for the health of its inhabitants.

Zoom on the auction

9 / How to properly prepare for an auction?

One of the major specificities in New Zealand is the purchase of real estate through auction.This purchase being unconditional, prepare well upstream!

Set yourself a price limit.It is necessary to know your limits and to determine your ceiling price for each property.

Prepare your “Deposit”.It is imperative that the amount of the “Deposit” is available on auction day, in the event that you win the sale.

D -Day, bidder with confidence and determination.

10 / Is it possible to make an offer for a good before auction?

In some cases, the seller may accept "pre-auction offerers".If you wish to make an offer before the day of the auctions, it is possible that the date of the sale is advanced and that the auctions open with the amount you offer for this property.It is also possible that the seller accepts your offer and cancels the auctions, if it suits him.

If a property put up for auction is interested, it is advisable to let the real estate agent in charge of the sale.In the event that another buyer makes an "pre-auction offered" accepted by the seller, he is obliged to warn you.