Costs Of Buying | Briana McDonagh

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These costs cannot come from your KiwiSaver. Your KiwiSaver withdrawal can only be used toward your deposit — not for legal fees, building inspections, or any other purchase costs. You need to have these funds available separately in cash savings. This is one of the reasons it is important not to put every dollar of savings toward your deposit.

Upfront costs before and at settlement

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Legal fees

Your lawyer handles the legal side of the purchase — reviewing the sale and purchase agreement, checking the property title, managing the settlement process, handling your KiwiSaver withdrawal if applicable, and liaising with the vendor's lawyer. Legal fees vary depending on the complexity of the purchase. A standard freehold property is at the lower end. A leasehold, cross-lease, or property purchased under a trust can cost more. Always agree on fees upfront before engaging a lawyer.

This is not optional — you need a lawyer to buy a property in New Zealand. Budget toward the higher end to be safe.

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Building inspection

A licensed building inspector assesses the condition of the property — checking for structural issues, moisture problems, weathertightness, plumbing and electrical concerns, and anything else that could require costly repairs. A building inspection is not legally required but is strongly recommended for any property. The cost of an inspection is small compared to the cost of buying a property with unknown issues. If you are attending multiple auctions, you may pay this cost more than once without a successful purchase — factor that into your planning.

Choose an inspector with professional indemnity insurance and check they work to the NZ Property Inspection Standard (NZS 4306).

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LIM report

A Land Information Memorandum (LIM) is a report from the local council containing everything the council knows about the property — building consents, zoning, any known hazards (flooding, erosion, subsidence), rates, and any unconsented work. Your lawyer will usually recommend getting one. Always check the date on any LIM provided by the vendor — if it is more than a few months old, request a fresh one. The cost varies by council and whether you request standard or urgent processing.

Some real estate agents include a LIM in the property documents pack. Check before ordering your own.

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Registered valuation

Your lender will typically arrange a registered valuation to confirm the property's value before approving your loan. This is particularly common when you have a deposit below 20% or when the property is unusual. The valuation must be ordered through the lender's approved platform — you cannot arrange your own independently. You will usually pay this fee, which is added to your loan costs. Not every purchase requires one — your mortgage adviser can tell you whether your lender will require it for your situation.

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House insurance

You need house insurance in place from the day before settlement. Your lender will require evidence of cover before releasing funds. The cost varies significantly depending on the property, its age, construction type, location, and the level of cover. Get quotes from multiple insurers and compare — some properties (particularly those with certain construction materials or in flood-prone areas) can be expensive to insure or hard to insure at all. It is worth checking insurability before going unconditional on a property.

Older homes, homes with certain cladding types, and homes in high-risk areas may attract significantly higher premiums. Always check before you commit.

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Moving costs

Whether you hire professional movers or rent a truck and do it yourself, there will be costs involved in getting your belongings to your new home. Professional movers for a standard house typically cost between $1,500 and $2,500 depending on distance, volume, and how many helpers are needed. Moving on a weekday is often cheaper than weekends. If you need storage between moving out of your rental and into your new home, factor that in too.

Ongoing costs to budget for as a homeowner

Beyond the upfront purchase costs, becoming a homeowner comes with ongoing expenses that renters do not pay. It is important to factor these into your budget before you buy — not after.

Cost	What it covers	Rough guide
Council rates	Local council levies charged on all properties — covering rubbish collection, infrastructure, and local services. Rates vary significantly by region and property value.	$2,000 – $5,000+ per year
Contents insurance	Covers your belongings inside the property. Separate from house insurance, which covers the building itself.	$600 – $1,500+ per year
Body corporate fees	If you buy an apartment or unit in a multi-owner development, body corporate fees cover maintenance of shared areas. Costs vary widely — always check before buying.	Varies — check before buying
Life and income protection insurance	Not legally required, but strongly recommended when you have a mortgage. If you cannot work, income protection ensures your repayments continue. Speak to an insurance adviser.	Varies by cover and age

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Test your budget before you buy. A good way to stress-test your readiness is to calculate your future mortgage repayment plus rates and insurance, then subtract your current rent. Whatever the difference is — that is what you should be saving every week right now. It proves you can afford the repayments and builds your deposit faster at the same time. Use the budget planner to map out your full income and expenses and see where you stand.

Not sure how much you need to have saved? Get in touch and I can help you work out your total buying budget — deposit, purchase costs, and what you need to keep in reserve.

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Cost ranges on this page are indicative only and based on general NZ market data. Actual costs vary by property, location, provider, and individual circumstances. Always obtain your own quotes before budgeting. This guide does not constitute financial or legal advice.

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