Buying a Property in New Zealand

Property purchases are subject to several mandatory steps and, in the case of foreign investors, to clear rules on their residency status, along with other criteria. The attorneys at our New Zealand law firm can assist those who want to buy a property in New Zealand.

Quick Facts
How to find properties for sale in New Zealand	– real estate websites, – real estate companies, – newspapers, – online forums, – property auctions, etc.
Who can buy a property in New Zealand?	– New Zealand citizens and permanent residents (ordinarily residents); – foreigners with residence permit and consent from the Overseas Investment Office
Foreign nationals not allowed to buy property	– individuals with no visa on their name, – foreigners with temporary visa
Criteria for ordinarily resident for property purchase	– have a residence class visa, – reside in New Zealand for at least 12 months before purchasing, – spend 183 days in New Zealand in the previous year, – be a New Zealand tax resident
Exceptions for Australian and Singaporean citizens	Australian and Singaporean citizens can buy properties (category residential or lifestyle) without consent, even if they are not ordinarily resident (ordinary residence matters only for land that is also otherwise sensitive).
Lifestyle properties – characteristics	Often called lifestyle blocks, located in rural areas, but close to cities or towns.
Residential properties – characteristics	Located in cities and towns, where you can build a house or buy an existing one.
Buying property with a spouse or partner	Only one member of the family needs to meet the rules for buying property in New Zealand, even if the other partner doesn’t observe those rules.
Pre-approval from the Overseas Investment Office	Apply for consent early in the buying process, even before you find a property you want to buy. Pre-approval lasts for up to a year and doesn’t cost extra. Our lawyers in New Zealand can help you obtain consent.
Time for consent approval	10 – 30 working days
Residency by investment program (YES/NO)	YES – the old Investor 1 and 2 categories closed in July 2022 and were replaced by the Active Investor Plus visa (NZD 5 million Growth or NZD 10 million Balanced category).
Deposit requirement	Usually around 20% of the property’s purchase price
Local bank account	Our attorneys in New Zealand recommend opening a local bank account for smoother transactions and other payments.
Fees for buying property in New Zealand	– real estate agent fees (around 3.5-5% of the transaction value) + 15% GST, – public registration fee (80 NZD), – fee for Land Information Memorandum (varies on location)
Assistance	You can rely on our law firm in New Zealand for assistance in obtaining consent, drafting documents, negotiations, and registration regarding property purchase in New Zealand.
Property purchase by auction	Takes place in an open auction and the buyer needs to win the auction.
Buying property by negotiation	The seller negotiates the asking price with the buyers; both parties can stipulate their conditions.
Multi-offer buying	When there is more than one offer at a property purchase by negotiation.
Buying by tender	The buyer makes a confidential offer (with or without a price indication from the seller).
Property purchase by deadline	When there is an advertised end date for the sale period.
Conditional property offer	The buyer needs to have his/her financial situation approved before purchase, or other pre-purchase steps are required.
Unconditional property offer	When the buyer does not need to meet conditions before buying the property.
Property research	It is common to perform a title search and make other checks (property inspection report, council information on the property, neighborhood investigation, etc).
Property due diligence	Main issues to check about the property itself include ventilation and heating, leaks, or problems with building materials (i.e., asbestos).
Conditions that can be included by the buyer	In some cases, the buyer can specify some conditions, such as requesting a toxicology report, or an engineer’s report, among others.
Fixtures	Items permanently included in the property (the deck, for example).
Movable items	Personal property, not fixed to the property. It is only included in the sale if specified.
Tenanted properties	When the buyer purchases a tenanted property, the seller gives the tenant notice to vacate.
Legal advice for tenanted properties	It is advisable to seek legal assistance in these cases.
Problems with NZ property purchases	If you have a problem during the purchase process, you can reach out to our team of real estate lawyers.

Who can buy property in New Zealand?

The following can buy a NZ property:

New Zealand citizens and permanent residents who are “ordinarily residents”;
Those who are not yet “ordinarily residents”, but have a residence permit and have received the approval of the Overseas Investment Office;
Australian or Singaporean citizens (even if not ordinarily resident) who purchase certain categories of properties or land.

For the purpose of buying a property in New Zealand, a person is an ordinary resident when:

He has a residence class visa;
Has been living in New Zealand for at least 12 months before the intention to purchase the property;
Has been physically present in New Zealand for at least 183 days of the preceding 12 months;
Is a New Zealand tax resident.

What are the essential steps for buying a property in New Zealand?

If you are thinking of purchasing real estate in NZ, the research phase is essential. Our team lists some of the most important steps you will need to take into account:

Budget: you will need to have a clear understanding of what you can currently afford and what your loan options and limits are;
Location: some of the cities with the highest potential for property investment in NZ are: Auckland, Wellington, and Christchurch due to their growing economies and populations;
Due diligence: if you are a foreigner buying property in New Zealand, we advise you to engage in a proper research phase, as well as conduct a thorough due diligence verification. This is an essential step, and one that will allow you to check if the desired property has any issues;
Buying: this step will involve your lawyer, as well as the seller’s lawyer, and you will also need to receive approval for your finances (if applicable) before you can conclude the purchase.

Is it mandatory to work with a real estate lawyer in New Zealand?

It is advisable to seek the assistance of a conveyancer or a New Zealand lawyer, such as those on our team, to handle the many legal steps in the process.

You do not have to work with a real estate agent, however, if you do, they must be included in the register kept by the Real Estate Authority. Alternatively, you may choose to handle the following on your own:

Search for the most suitable property;
Negotiate the price.

We invite you to watch a video on this topic:

Are there special conditions for buying a property in New Zealand?

Consent is required for land purchases that fall into the residential and lifestyle categories. Another classification is in place for land located near beaches, rivers, or conservation areas. This is classified as otherwise sensitive and can also be subject to restrictions.

Overseas persons and holders of the following visa categories cannot buy property:

Work visa;
Student visa;
Work-to-residence visa;
Working holiday visa;
Visitor visa.

For those who intend to buy land, pre-approvals are available (valid for up to one year). In all cases, it is essential to check the category of land you intend to purchase in New Zealand.

You cannot participate in an auction to buy a property in New Zealand if you do not have pre-approval to purchase.

It is illegal to assign a New Zealand resident or citizen or a company to buy the residential property in the name of an individual who would otherwise not qualify for property purchases in NZ.

When do I need to obtain consent to buy property in New Zealand?

As early as possible as strict conditions can apply on making a purchase offer, and not having consent will not allow you to submit your offer application.

How fast can I obtain the required consent?

Standard consent applications have a processing time of 10 working days.

How long does it take to buy a property in New Zealand?

If all the documents are in order and if all the conditions are met, it can take as little as 3 or 4 weeks to complete the property purchase process.

You can contact our law firm in New Zealand as soon as you decide that you are ready to buy a property.