Buying your first home is an exciting milestone – and having worked with many first-home buyers over the years, I know it can also be overwhelming. From navigating legal documents to understanding market trends, there’s a lot to consider before you even start attending open homes.

Once you do start showing up to viewings, you’ll quickly find yourself dealing with vendors and their (often pushy) agents. To help you feel more confident and prepared, here are five essential things every first-home buyer in New Zealand should know before diving into the property market.

1. Know Your Budget and Get Pre-Approval

It sounds obvious, but when you finally find the one – the home you’ve been searching for – all reason can go out the window. That’s why it’s so important to:

• Get pre-approval from your bank or lender. A good mortgage broker who knows and cares is essential.
• Factor in additional costs like legal fees, building inspections, LIM reports, and moving expenses.
• Explore support options like KiwiSaver withdrawals and bank cash contributions (often called “cashback”) to help boost your deposit.
• Having a clear budget helps you stay focused and avoid falling in love with properties that are out of reach.

2. Consider Engaging a Buyer’s Agent

A buyer’s agent works exclusively for you – not the vendor – to help you find the right property, negotiate the best price, and guide you through the process. They can:

• Provide market insights and suburb comparisons.
• Give access to off-market properties.
• Assist with paperwork and liaise with your lawyer and mortgage broker.
• While not essential, a buyer’s agent can be especially helpful if you’re short on time or unfamiliar with the property market.

3. Check the Property’s Legal and Physical Status

Every property has a story – and it’s your job to uncover it. Before making an offer, make sure to:

• Review the title for easements, covenants, or cross-leases.
• Order a LIM report from the local council to check zoning, consents, and flood risks.
• Get a building inspection to identify any structural issues, leaks, or deferred maintenance.
• Confirm that you’re eligible to purchase residential property under the Overseas Investment Act – your lawyer can guide you through the process if needed.

Your lawyer will play a key role in interpreting these documents and flagging any red flags.

4. Understand Your Rights as a Purchaser

When you make an offer, you can include conditions to protect yourself, such as:

• Finance approval
• Building inspection
• LIM report review
• Or a broader Due Diligence condition that covers all of the above and any other investigations you want to undertake.

If you’re buying a new build, be aware of sunset clauses, when your deposit is due, and your rights under the Consumer Guarantees Act. Don’t hesitate to ask your lawyer to explain anything unclear.

5. Research the Area and Think Long-Term

It’s easy to get swept up in a beautiful kitchen or sunny deck – but don’t forget to look beyond the property itself. Consider:

• School zones, public transport, and future developments.
• Recent sales data and trends in the suburb.
• Whether the property suits your long-term plans (e.g., space to grow, resale potential).
• A well-researched purchase is more likely to serve you well for years to come.

Buying your first home is one of the biggest financial decisions you’ll ever make. With the right preparation and a team of competent professionals around you, it can be a rewarding and empowering experience. Surround yourself with trusted advisors, ask questions, and take your time. The more informed you are, the more confident you’ll feel – whether you’re making an offer or settling into your new home.

Disclaimer: This article is general commentary only and is not legal advice. Always seek tailored legal advice before making investment or immigration decisions.