Expats moving to New Zealand will find that there are many different options available in regards to accommodation. Most do choose to rent out a place although those who are staying long term will buy property. There is accommodation available for a short term which will give time to expats to look for a home.
There are different housing options available and prices do vary depending on the location:
- Free-Standing and Duplex Houses
- Apartments – These vary in size and can be found in the city centres. Majority of students and young professionals who work in the city choose to rent apartments.
- Home Units – These range from 2-3 bedroom houses around a driveway. You can purchased attached, detached and semi-detached.
- Town Houses – These are mainly found in larger cities
- City Centre Town Houses – Located on the outskirts of the city centre and are either cottage style homes or single storey houses. These are generally quite expensive.
- Blue Ribbon Sea View Home – This is the most expensive housing option which is located near the city centre with a waterfront which has a minimum of two bedrooms.
- Small Holdings – These are found away from the city and have land attached to them with a big amount of outdoor space, swimming pools and a large garden area.
- Larger Family Homes – These are located outside the city centre and have three-five bedrooms. These are suitable for families who have children.
How to find property
Many expats do find property before moving to the country, however for those wanting to rent a house or an apartment will be able find them online or in local newspapers. By looking before relocating it gives the chance to expats to see what type of properties are available in different areas and in their budget.
Estate agents and Rental agencies have offices located in the country which can help look for property and give you more information and choices on the properties available or for what you are looking for.
Rents for properties are usually advertised showing a weekly price and usually depends on the location and size of the property.
Expats who are renting or purchasing property in the bigger cities will find that it is more expensive and some properties are unfurnished with only basic equipment such as lights, carpets and a stove.
Renting
Renting property is a straight forward process; however expats must be aware that when renting, properties may be unfurnished with some just providing a fridge, freezer and washing machine. The housing legislation and processes are administered by the government agency which will provide a contract detailing the responsibilities for tenants and landlords.
Expats who are renting out property will need to pay for rental charges in addition to utility bills. It is your responsibility to connect with the electricity, water and gas company. If you require internet and a telephone line this will also be your responsibility.
Estate agents provide help in finding property, but they do charge a fee for this which is usually one week’s rent. The rent is paid twice a month in advance and expats will need to pay a deposit ‘bond’ which is equal to four weeks. This will be taken to the Bond centre by the landlord who will then be given a receipt which must be kept safely to claim the deposit back for when leaving the property.
A residential tenancy agreement will then be signed by both the landlord and tenant for a fixed term or until the landlord or tenant gives notice. A fixed term agreement cannot be ended before the time.
The agreement details the responsibilities of the landlord for maintenance, rental fees, property being kept to a good standard and notice periods. This is the same for the tenant who will get a list of responsibilities agreeing to pay rent on time, keeping the property tidy and ensuring no damage is done to the property.
The costs of renting property do vary and depends on the size and location, you must be aware that in the city centre, properties will be expensive.
The standard tenancy agreement is for 12 months however expats who require the property for a longer period can negotiate this with the landlord.
Buying property
Majority of the foreign nationals moving to the country for a long period of time do prefer to buy a family home after renting and exploring the choices. The process of buying property does usually take a few weeks to complete.
A list of properties can be found on the Ministry of Business website, estate agents and also in the newspaper. You may also drive around to look for property. It is important that you complete a viewing before purchasing the property. Expats wanting more information regarding this can look on the Real Estate Agents authority website which is run by the government.
Property owners are charged rates by the local council and can be quite expensive depending on the area.
Many properties can be bought via an auction and if you place a winning bid on the home, they you are obliged to go through with the purchase. It is expected that when attending and winning the auction a 10% deposit will need to be paid on the day.
Property Buying Process
Most expats do use an estate agent who will be able to provide assistant in the buying process and this is usually straight forward.
- Once you have found a house that you like and agreed the details with the seller such as price, this will be put into the contract
- Expats must meet some conditions and may need to provide proof of finance
- The contract will become unconditional once conditions have been met and the purchaser can pay a deposit of 10% to the purchase price
- Property is confirmed by the lawyer who will look at the transaction
- Before the initial offer is made, the buyer should have a building inspection and valuation carried out
- Sale of property can be completed within 4-6 weeks, but if more conditions need to be met this can take longer
- Buyer will pay fees to the solicitor and the solicitor will handle the purchase of a property
- The documentation for the property will be given
Mortgages in New Zealand
Expats wanting a mortgage will have no issues doing this through a New Zealand bank. You will be able to apply for a mortgage if you have the right to live and work in the country and have all the documents to prove this. There may also be financial criteria that you will need to meet.
The amount you can borrow can vary and the most they will lend will be around 4.5 times the amount of the gross household income, but this can be less.
The three categories when applying for a mortgage
- Category 1: This is for individuals who are permanent residents and will give the same rights as New Zealand citizens. A loan can be up to 95% of the value of the property
- Category 2: This is for expats who have a work permit although you may be able to give a larger deposit, a minimum of 20% of the purchase price.
- Category 3: This is for individuals who want to purchase a holiday home and don’t have a residency right. This category has the same rules as number 2
When making your mortgage application, you will be required to show:
- Proof of ID (Passport or Drivers License)
- Proof of residency status
- Proof of income (Payslips, Statements)
The process can usually be done within 2-6 weeks.