Buying property in New Zealand as an Australian

Kia Ora! From the South Island's snowy mountain peaks and breathtaking blue lakes to the cosmopolitan capital, caves and lush waterfalls found on the North Island, New Zealand is a nature lovers' dream.

Culturally rich, safe, friendly and packed with things to do, it is easy to see why New Zealand is so appealing to Australians seeking a new adventure not far from home.

If you’re an Aussie seeking to purchase a home and live in New Zealand long-term or buy property there as an investment, you may be wondering whether this is permitted or what is involved. In this guide, we’ll answer these questions and more so you can decide if your dreams of becoming an honorary Kiwi are achievable.

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Note: This article is purely for general information purposes and is not to be taken as financial advice. We recommend that you obtain independent financial advice before making any form of decision.

Can Australians buy property or real estate in New Zealand?

Yes, both Australian citizens and Australian residents can buy residential or ‘lifestyle’ property in New Zealand.

However, while citizens can do so with no virtually no restrictions and do not require consent from the overseas property office, residents may need to do so in certain circumstances.¹

What is reciprocity when it comes to buying property in different countries

Some countries have what is referred to as Reciprocity or a Reciprocity Agreement for buying property. Aimed at making these exchanges mutually beneficial for citizens of both nations, these agreements typically outline any protections and conditions that apply should they invest in real estate in the alternate nation.

In the case of Australian and New Zealand citizens, no formal reciprocity agreement exists in terms of property.

However, under the Trans-Tasman Travel agreement, citizens of both nations can move freely between Australia and New Zealand. This allows them to live and work in either country indefinitely and purchase property with minimal restrictions and no visas necessary.²

What’s the property market like in New Zealand?

Buying property in New Zealand is increasingly expensive with prices particularly high around its major cities – as of 2024 the average spend in Auckland sits at NZD$1.26 million for a residential property.³

Additionally, recent statistics also show that New Zealand, alongside Australia, now has one of the highest house-price-to-income ratios in the world.³ So if you’re seeking to work and buy in New Zealand to escape Australia’s challenging housing cost to wage disparity, it's worth noting that you may find yourself in a similar situation.

Of course, where you choose to live and the type of property will also greatly influence what you can expect to spend.

Residential property prices in different locations

With so many cities and beautiful regions to choose from, it can take time to figure out where to start. To help you on your way, we’ve gathered details of the average property prices in various locations around New Zealand to compare.

While apartments are available to buy, they are generally only found around major cities, so for this article, we’ve focused on houses to give a broader idea of what to expect in each city or region.

City/Region	Average Price³
Auckland	NZD$1.26 million
Wellington	NZD$780,000
Bay Of Plenty	NZD$780,000
Waikato	NZD$720,000
Canterbury	NZD$690,000
Nelson	NZD$650,000
Otago	NZD$625,000
Marlborough	NZD$620,000
Manawatu-Whanganui	NZD$535,000
West Coast	NZD$320,000

As seen on 17 July 2024

How to find property to buy in New Zealand

Finding a property to purchase in New Zealand is straightforward and follows much the same process as you’d expect in Australia. A heavily regulated industry, finding reliable information online regarding real estate listings and selling agents is also a breeze.

Property agencies and agents

Most property purchases in New Zealand are done through a property agent with private sales unusual.

Again, just like in Australia, real estate agents in New Zealand must be licensed. To check whether an agent is licensed and authorised to assist with your property purchased, you can review their credentials via the Real Estate Authority of New Zealand.

Property websites in New Zealand

The easiest way to browse housing types and prices throughout New Zealand, property websites are a great place to start in your hunt for a home or investment.

You may like to start your search on a site with nationwide listings or on the website of a local agent in your preferred area. For the former, we suggest visiting the following websites.

• Harcourts
• Century 21
• Realestate.co.nz

Using the filtering tools, you can quickly narrow down suitable properties for your needs and get a good idea of what you can expect based on your budget.

How to choose the right property to buy in New Zealand. What to consider

While a relatively small nation compared to Australia, New Zealand offers a diverse number of regions and cities to live in, each with its own pros and cons. What appeals to you and your circumstances could be vastly different to another Aussie also seeking to buy there.

Regardless, to help you narrow down your search it is best to consider a few things including:

• Which city or region you like
• Proximity to employment, schools, shopping, healthcare or similar
• If there is any public transport
• The preferred property features such as number of bedrooms and bathrooms
• Whether you want an apartment or a house
• How popular the area is with tourists (some areas on the South Island can be very busy during peak ski season)
• If you want your property to be close to the coast, mountains or major city
• Your budget range

As a nation with multiple active volcanos and regular earthquakes, it is also wise to consider the frequency of nature-related hazards and how safe an area is concerning these.

Can you get a mortgage in New Zealand as an Australian?

Yes, with no restrictions on how long you can live and work in New Zealand as an Australian and being permitted to buy property, securing a mortgage with a local lender is an option.

Again, just like in Australia, you’ll generally be expected to have 20% of the property price saved as a deposit, though depending on your circumstances or lender there may be variations to this.

Documents needed for buying a property in New Zealand as an Australian

Aside from the usual documents you’ll need to provide to your lender to gain finance approval, you’ll also need to give your solicitor or conveyancer one or more of the following⁴:

• Your IRD number (NZ Tax ID) and/or
• Your Australian TFN ( Australia’s equivalent of an IRD number)
• A completed Residential land withholding tax declaration - IR1101 form (if you’re buying as an offshore RLWT person)

What are the legal requirements for buying property in New Zealand as an Australian?

So long as you have obtained your Australian Resident Visa on arrival as an Australian Citizen, you have met the legal requirements for residency and property purchasing in New Zealand.¹

As noted above, you may also need to obtain an IRD number to complete the purchase, your legal representative will be able to guide you on this.

What are the taxes and fees usually levied on property purchases in New Zealand?

As with all property purchases globally, there are some associated fees and taxes that you’ll need to budget for when buying in New Zealand.

Below are some of the key fees to know about⁵:

• Conveyancer fees, typically around NZD$1500 but can vary depending on expertise and sale type
• Public Registration fee for property transfer NZD$80

Helpfully, there is no stamp duty in New Zealand, which is a huge point of difference in housing affordability when compared to Australia, saving you tens of thousands as a buyer.

Steps to take to buy a house in New Zealand

The exact process for buying a home in New Zealand will depend on whether you’re a citizen or permanent resident of Australia and the type of property you are hoping to buy.

However, the the basic steps involved can be summarised as follows:

• Determine your budget, including your deposit and the estimated amount you'll be approved to borrow and less any fees
• Decide on legal representation, either a solicitor conveyancer. Finding a trusted pest and building inspector is also advisable. This way you’ll have a team on hand, ready to go, when you find the right place to buy
• Research property options online and through your chosen real estate agent
• Once you have chosen a home, carry out a property inspection and procure a LIM (property report issued by the local council) to make sure there are no issues
• Get the contract of sale and have your legal counsel review it, if all okay, you can then make an offer. Once accepted you’ll likely need to pay a deposit soon after.
• Carry out pre-settlement requirements, including a final inspection
• Settle on the property and pay the final balance to transfer the legal ownership.

Avoiding scams when buying a property in New Zealand

While buying a property in New Zealand is usually straightforward and safe, it is still wise to do the following to avoid any potential scams.

• Only work with authorised real estate agents and qualified legal experts
• Always visit a property in-person to ensure it matches the listing
• Exercise caution if the price seems too good to be true
• Perform property searches using reputable real estate websites to reduce the risk of fake listings
• Don’t pay any fees or sign anything before seeking legal advice

Should you have any complaints about the real estate agent you’re using, or need advice or guidance, visit the Real Estate Authority of New Zealand’s website for assistance.

What else to keep in mind

It is advisable to speak with an Australian/New Zealand migrant tax expert when buying, selling or renting out property in New Zealand as an Australian citizen to ensure you fully understand your tax obligations.

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This article is purely for general information purposes and is not to be taken as financial advice. We recommend that you obtain independent financial advice before making any form of decision.

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Sources:

1. Land Information NZ - Buying Property In New Zealand
2. Parliament Of Australia - Trans-Tasman Travel Agreement
3. Statista - Property In New Zealand
4. Inland Revenue - Purchase Documents
5. Global Property Guide - Buying Costs

Sources checked on: 17 July 2024