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3 Must-knows for First Home Buyers in NZ

Buying a home is a big decision, but with some knowledge and preparation, it can be a great experience. As a first home buyer in NZ, there are a few things you need to know to make the process as smooth as possible. Arranging your finances is the foremost step. This means getting pre-approved for a mortgage and knowing how much you can afford to spend on your new home. Then you need to find a suitable home for you. It may take some time, but finding a place that meets your needs and budget is essential.

You need to do your research when buying a home. This includes knowing what property type you want and where you want to live. You should also be aware of the different types of homes available and their pros and cons. This research will help you make the best decisions for you and your family.

Home Buying Terminology

Buying a home can be confusing and complicated, but that is why we are here. We don't want you to feel lost and confused among all the jargon--we want you to get a great house at the best price. As a first-time home buyer in New Zealand, you must become familiar with some key terminology you will encounter during the home-buying process. Below are a few essential terms you need to know:

• Conditional agreement:

You must present and sign a sale and purchase agreement to purchase a home. If this agreement is based on the results of certain buyer checks or due diligence, it is known as a conditional agreement.

•Land Information Memorandum (LIM):

The Land Information Memorandum (LIM) is significant to buy a home. It contains details on all information and property-related issues your local council has. The types of issues included in the document are records of work done with a compliance code and any risks to the land, like flooding or erosion.

Extra Home-Buying Costs

The saying that buying a home costs much more than the current sale price is a cliché because this is an undeniable reality. Unfortunately, many first-home buyers never remember this when they buy and struggle to make ends meet.

To avoid surprises down the road, factor in all the costs of buying a home – not just the obvious ones. These can include:

•Lenders Mortgage Insurance (LMI):

If you are taking out a mortgage to buy your first home, you will likely need to take out mortgage insurance. The purpose of this is to safeguard the lender's interests if you are unable to meet your repayment obligations.

•Moving costs:

When hiring a removalist, one can expect to pay the price for it. If opting to do it oneself, one could spend far less.


Buying furniture when you move into a new home can be expensive. If you have more space than your flat, you might find it challenging to fill the space. When buying couches, beds, kitchen appliances and other pieces of furniture, don't forget about the budget too.


Insurance is a cost many consumers overlook when building their future homes. Some lenders will only approve your mortgage if you have home insurance, so it is best to get it before you start. The price depends on the cost of rebuilding your home, the risk associated with it and the insurer you choose.

•Lawyer's fees:

You will need to engage a lawyer to help with the purchase process and review the sale and purchase agreement. They will review your sale and purchase agreement, add conditions, register for property transfers, and more. Lawyers' fees can range depending on the complexity of the transaction.

Before purchasing a property, make sure you factor these costs into your budget, so you don’t end up struggling financially.

What Can You Afford?

Buying a home is a significant investment that requires careful planning. You should be sure you can afford it before starting the process. To work out what you can afford, look at homes you would be interested in buying, get an idea of their price, compare the prices, and then finalize the one that matches your budget.

Get professional help to start your road toward home ownership. Owning your first home is possible if you find the right agent and do your homework.

We have many projects that are perfect for first home buyers, check out our Current Projects to find your perfect first home.

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