Buying property in New Zealand as a Brit

Dreaming of a new life in New Zealand? If you’re planning a big move from the UK, you might want to look into buying a property - even if you’ll be renting at first.

Alternatively, you might be looking for a holiday home, somewhere to stay when you visit family and friends in NZ. Or perhaps you’d like to buy an investment property over there.

Whichever is the case, read on. We’ve put together a complete guide to buying property in New Zealand as a Brit. This includes what to expect from the buying process, the latest info on New Zealand property prices and everything else you need to know.

We’ll also show you a cost-saving way to transfer funds between the UK and New Zealand using the money services provider Wise. You can send secure international payments with Wise, for low fees and mid-market exchange rates. It could save you a bundle compared to using a bank.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Table of Contents

What’s the property market like in New Zealand? Can foreigners buy property in New Zealand? Can you buy property in New Zealand and get residency? Buying property in New Zealand as a foreigner - a step-by-step guide Can you get a mortgage from a New Zealand bank as a non-resident? Taxes and fees for owning property in New Zealand How much are the property prices in New Zealand? Where is the cheapest place to buy property in New Zealand? How can you find a property in New Zealand? Property agencies and agents in New Zealand Property websites in New Zealand What are some of the pitfalls of buying property in New Zealand? How do you choose the right property in New Zealand? Condition of the property Moving into your New Zealand property Insurance Setting up utilities Energy efficiency renovations

What’s the property market like in New Zealand?

The New Zealand property market has experienced a recent decline, with prices falling nearly 18% between November 2021 and May 2023.¹

The market has started to pick up as of mid-2023 though, with prices rising 1.25%. The number of properties for sale has also increased by a huge 85% between August 2021 and August 2023.¹

All of this is pretty good news for buyers, especially first-time buyers and those looking for more affordable options. Although it depends on which region you’re house hunting in, there could be an opportunity to snap up a bargain before prices rise further.

Can foreigners buy property in New Zealand?

Foreign nationals can buy property in New Zealand, but you’ll usually need to have a New Zealand residence class visa and be living in the country most of the time.²

There are some exceptions though. For example:

• You may be able to apply to the Overseas Investment Office for consent to buy residential land to build more houses on³
• You may be able to buy apartments off the plans in large apartment developments⁴
• You may be able to buy other commercial or investment property, but the rules are complex.

The New Zealand Immigration website has a handy tool here for assessing your housing situation and providing information.

Can you buy property in New Zealand and get residency?

New Zealand used to offer an investor visa, which granted residency for overseas nationals making a minimum investment in a New Zealand business, bond, equity or other investment. Crucially, investments in residential or commercial property were also considered valid under the terms of the visa.⁵

However, this visa closed to new applications in July 2022.⁵ It was replaced by a new Active investor plus visa, where property was not included on the list of valid investment types.⁶

Unfortunately then, this means that as a UK citizen, you can’t get a residency visa by investing in property there.

📚 Read more: Retiring to New Zealand: Step-by-step guide

Buying property in New Zealand as a foreigner - a step-by-step guide

Before you start your house hunt, it can be useful to know a little about how the process of buying property works in New Zealand. Here’s a quick overview of the steps involved:

1. Find a property and arrange viewings

We’ll run through some tips for where to look later in this guide, including online property portals and local estate agents.

2. Research the property before making an offer

It’s important to read the Land Information Memorandum (LIM), which provides a summary of key property information. You should also instruct your conveyancer to do a title search, which can provide more information. Lastly, use the property checker tool on the government’s Settled.govt.nz website.⁷

3. Make an offer

The offer process can vary depending on the method of sale chosen to sell the property. For example, it could be a multi-offer process where more than one potential buyer has submitted an offer in writing. The seller will choose the best one. In this case, you need to put your best offer forward first, as you may not have an opportunity to increase it.

If your offer is conditional on a property inspection being carried out, you can arrange this and then finalise the offer after you get the results.

4. Sign the sale and purchase agreement

Once your offer is accepted, the next step is for both parties to sign the sale agreement. This makes the offer legally binding. You’ll usually pay the deposit at this stage too.⁸

5. Confirm your finances

With the paperwork sorted, you’ll need to contact your bank or lender to finalise your mortgage offer.

6. Work towards settlement day

This is the day that the property purchase will be completed, as agreed between all parties. It’s the equivalent to the completion date in the UK. There are a number of contract conditions that both parties will need to meet before the funds and keys are exchanged, including getting insurance.

Can you get a mortgage from a New Zealand bank as a non-resident?

As we’ve already looked at, you might find it difficult to purchase property in New Zealand unless you have a residency visa and are living there. The same goes for getting a mortgage from a New Zealand bank.

Even if you are living there, if you’re a new arrival you may not have a credit rating. This can also make it difficult to get a property loan.⁹

Taxes and fees for owning property in New Zealand

As well as the purchase price, you also need to factor in the relevant fees and taxes for buying property in New Zealand. This is important, as it can affect your overall budget.

Here are the essential costs you need to know about:

• Conveyancing fees - these are typically around $1,500 NZD¹⁰
• Land Information Memorandum - varies by local authority, but you can expect to pay around $400-500 NZD to apply¹¹
• Registration fee - this is a fee of $80 NZD to transfer the title of the property to your name.¹⁰

The great news though is that New Zealand doesn’t have real estate taxes, which means you won’t have to pay any stamp duty.¹²

📚 Read more: The cost of living in New Zealand

How much are the property prices in New Zealand?

Generally speaking, property in New Zealand is more expensive than in the UK. Average prices are nearly 20% higher if you buy in a city (based on buying an apartment), while the difference shoots up to 34% for apartments outside of city centres.¹³

The average property price in New Zealand is $767,000 NZD.¹

Where you buy will also affect the property price, based on what’s happening in the local market. Here’s a guide to what you can expect to pay per square metre in some of New Zealand’s major cities:¹⁴

City	Average apartment price per sq.m - city centre	Average apartment price per sq.m - outside city
Auckland	15,575 NZD	13,763 NZD
Wellington	12,795 NZD	11,540 NZD
Christchurch	5,905 NZD	4,281 NZD

Remember though that property prices will also vary depending on the type of property.

When it comes to sending over money for your deposit and the final balance, Wise could be the ideal solution. It’s safe, secure and fast, even for sending large transfers.

What’s more, you’ll get mid-market exchange rates and low fees when you send money with Wise. This could save you a small fortune compared to using your bank.

Learn more about sending money with Wise 💰

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Where is the cheapest place to buy property in New Zealand?

In terms of the major cities in New Zealand, Christchurch is the cheapest. But taking the country as a whole, the following are the cheapest places to buy property in New Zealand at the moment:¹

• West Coast - average price $332,389 NZD
• Southland - average price $449,000 NZD
• Manawatu-Wanganui - average price $545,000.

How can you find a property in New Zealand?

There are a few ways you can find property to buy in New Zealand - namely, real estate agencies and online property portals.

Property agencies and agents in New Zealand

You don’t have to use an estate agent to find a property to buy, but it can be helpful. This is especially the case for people who are moving to New Zealand from the UK. An agency will be familiar with the local property market and can help you find suitable properties.

If you’re looking for a buyer’s agent, you can choose a UK agency that specialises in international property (with expertise in New Zealand). Or you can find a NZ agent - find one through the online public register managed by the Real Estate Authority (REA).

Property websites in New Zealand

You can also search for property in New Zealand yourself, from anywhere in the world with an internet connection. Here are some of the most popular property websites for New Zealand real estate:¹⁵

• OneRoof
• Real Estate NZ
• Property Value
• Barfoot & Thompson
• Ray White

What are some of the pitfalls of buying property in New Zealand?

There are a few things you should be aware of when buying a home in New Zealand:⁸

• Leaking buildings, heating and ventilation problems. Some of the country’s buildings, built between the 1980s and 2000s, have a high risk of leaking. Additionally, some have issues with mould, damp and ventilation, or do not have central heating.
• Problematic materials. Make sure to get a property inspection to look for unreliable materials such as asbestos, Dux Quest piping and Weatherside cladding.
• Natural hazards. It’s worth checking out whether natural events such as earthquakes, floods, landslides or volcanic eruptions have affected the property in the past - or could have an impact in the near future.

How do you choose the right property in New Zealand?

The right property for you will all depend on where you want to live, the type of home and of course, the price. If you’re not already living there, it’s worth making a trip to check out the local area and view properties. Pay attention to local transport links and amenities, and try to get a feel for the area.

Condition of the property

It’s crucial to do as much research as possible before committing to purchase a property, making sure it’s in good condition and that there are no major issues.

The Land Information Memorandum (LIM) will be very helpful for this, but you can also order additional property inspections. If you have any concerns, it could be an expense well worth paying.

Moving into your New Zealand property

As you look forward to getting the keys to your new home, you’ll have a final few tasks to check off your list.

Insurance

You’ll need to get suitable insurance before you can legally own the property. This will be required by your mortgage lender, and perhaps under the terms of the sale contract too.

Setting up utilities

If you’ve got your settlement date, it makes sense to get some essentials set up in advance of moving in. A prime example is utilities, such as heating, power and water. Get these sorted earlier, and the moving process should be a little smoother.

Energy efficiency renovations

Bought a property with no central heating, an old heating system or no insulation? One of your first priorities might be to carry out energy efficiency renovations. This will be especially important if you’ve moved to an area of New Zealand which experiences extreme weather.

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And that’s it - your complete guide to buying property in New Zealand as a Brit. We’ve covered the lot, from the buying process to fees, taxes and property prices.

After reading this, you should have a better grip on how it all works, and be ready to start house hunting.

And, if you need an easy, low-cost way to handle your finances in both the UK and New Zealand, consider checking out the Wise account.

Sign up with Wise today 💰

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

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Sources used for this article:

1. Opes Partners - New Zealand house prices | Property market (2023)
2. Land Information New Zealand - Buying residential property to live in
3. Land Information New Zealand - Investing in residential land to develop
4. Land Information New Zealand - Investing in apartments
5. New Zealand Immigration - Acceptable investments: investor visas
6. New Zealand Immigration - Active Investor Plus visa
7. Settled.govt.nz - Buying a home - Doing your homework
8. Settled.govt.nz - Buying property in New Zealand
9. New Zealand Immigration - Buying a Home
10. Global Property Guide - Buying Real Estate in New Zealand: Process and Costs
11. Wellington City Council - Land Information Memorandum (LIM)
12. Global Property Guide - Tax on property income in New Zealand
13. Numbeo - Cost of Living - Compare Countries
14. Numbeo - Cost of Living - Prices by City
15. SimilarWeb - Most Visited Real Estate Websites in New Zealand

Sources checked on 11-Oct-2023.