New Zealand Housing

New Zealand Housing – Unlike Europeans and North Americans, New Zealanders in general prefer to own rather than rent.

First time home owners or those new to New Zealand may find that home ownership is becoming increasingly expensive (relative to the New Zealand dollar) and so need to rent longer in order to save for their deposit. The result is that the ratio of rentals to home ownership is increasing.

For some, renting is the best solution, especially if you are new to the country and need time to settle. It is generally recommended that you do rent for the first six to twelve months to give you time to get to know your new city and surroundings, and become familiar with the area, schools, shopping, public transportation, proximity to work, and all other amenities of importance to you.

Assuming you are coming to New Zealand with a job offer already in hand, your housing options will perhaps be dictated by, but not limited to, the proximity of your workplace. Many areas are supported by good public transport options, more especially in the cities, and it is not unheard of for people to travel for more than an hour each way to their place of work.

There are rental properties on the market that come fully or semi-furnished but they are few and far between. New Zealand Law requires that all rental properties must contain a stove with oven and most rental properties will be carpeted.

You will be responsible for arranging for your utilities to be connected.

Most cities have letting agencies that list properties on behalf of the landlord. New Zealand law requires that any person or company who charges a commission for letting residential property must be a licensed real estate agent and a member of the Real Estate Institute for New Zealand (MREINZ).

Once you have found a suitable property, you must then sign a contract to rent, known as a Tenancy Agreement.

Once you have agreed to rent a property, you will need to pay a fee to the letting agency (if applicable) or real estate firm if you have used one, as well as a bond and rent in advance.

In addition to a payment for rent in advance, most landlords will require you to pay a bond.

Buying a house at any time can be stressful, confusing and time consuming and even more so when you are looking to purchase your home in a new country. Ownership law may be different to what you're used to, real estate agents may operate in a style unlike those back home and the style of housing may be quite different.

Most houses in New Zealand are sold through real estate agents on a commission basis, whether it be by negotiation with the seller, via tender or through an auction process. Commission is generally 2-4%% of the final sale price of the property and is paid by the seller.

It is a legal requirement that all changes in home ownership (conveyancing) within New Zealand be conducted by a solicitor. Both the seller and purchaser need to have separate representations to ensure that each party is not legally disadvantaged and your interests are protected.

Annually, New Zealand's local councils set rating values for the properties in their district or region in order to set the 'rates' paid by homeowners.

For more information you can Purchase a Guide to New Zealand Housing.