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Buying a house in New Zealand

You may look at dozens of houses before you buy or only a few. Either way, you can find the right home with thorough research. We look at the important matters to investigate.

Buyer beware!

Before you buy a new home, whether it is not yet built, newly built, or an older home, it is important to research it thoroughly.
For most people, buying a house or an apartment is the biggest investment they will ever make, so it is wise to go into it knowing as much as possible, including any defects or potential problems.

When you purchase an older house you are likely to be buying into some problems. Homes that have been neglected can have problems with the structure, roof, plumbing, electrics and gas, which can pose a risk to the overall integrity of the building, as well as your safety and wellbeing after you move in.

Even if the house has been well maintained, you can expect a few matters will need to be dealt with, even if it is simply a need for redecoration.

For newer and newly built homes, the problem of weathertightness failure, or at the extreme end, leaky building syndrome, has been a concern for some home owners. Some homes built in the period from early to mid 1990s until around 2003 have shown failures in construction, design, supervision and material installation. You need to take particular care if you are in the market to buy a home identified as being prone to leaking.

When you find a home you are interested in buying, make sure your money will be well spent:

1. Do your own initial research into the area, and the state of the home.
2. Before you sign a sale and purchase agreement, make it conditional on getting a satisfactory:

• Title search.
• Land Information Memorandum.
• Valuation.
• Property inspection.
• Finance.

Property inspection checklist

Before engaging a professional inspector (who is qualified in the building industry and can give you expert advice),carry out your own investigations. It might help you to rule out properties before getting too far through the purchase process.

It is important to be confident that the home you are looking at is structurally sound. Organise a time with the real estate agent or owner and allow a couple of hours to go through this checklist:

• On the outside examine the general condition of the cladding, drainpipes and roof. Look for damaged paintwork, rotten wood, rust, holes, cracks and crumbling mortar, and broken roof tiles. Be careful of cladding susceptible to leaking. You will need a ladder to look at the roof.
• Check around the house to make sure the cladding is at least 225mm above the ground (grasses or garden) or 150mm from the floor level to paved surfaces. Check whether the garden may have been banked up against the house over the years.
• Under the house, check the piles. You can check wooden piles by poking a screwdriver into the wood, just below ground level, to see if there are any soft areas. Does it smell or seem damp under the house? Look to see if there have been makeshift repairs on the piles.
• From a ladder, look into the ceiling space. Does the header tank look secure? Does the bathroom fan vent directly into the ceiling space with no outlet for steam?
• Inside, test the floors by jumping up and down to see if the floorboards feel springy or squeak. Does the floor feel like it is sloping? Check for cracks in the walls and windows, or doors that don't close properly. It may be an indication of problems with the piles or settling.
• Does the house smell damp or are there indications of dampness such as stained ceilings and walls, mould, bubbling or stained paint, bulges in the walls and rotting skirting boards?
• Check all the power points are working by using a power-point tester, which you can buy from a hardware store. Take note of problems with the electrical system like scorch marks on power points.
• In the kitchen and bathrooms, check for broken tiles, damp around sinks and showers, mould and missing sealant.
• Check that built-in appliances, for example, the dishwasher and stove, are working.
• Turn on every tap in the house and check the water pressure and any strange noises in the plumbing. Check the age of the hot water cylinder.
• Check for insulation where possible, for example, underfloor or in the ceiling.
• Around the section, check the condition of fences, paving and driveways. Large trees can be a problem sending roots under the house and into drains.
• Look over the boundary fences for any potential issues with neighbours, such as overhanging trees, car wrecking, or noisy dogs.
• If the house was built after 1 July 1992 find out from the council if it has a code of compliance certificate.

If you are reasonably satisfied with your own inspection, and decide to take it to the next stage, it is recommended that you still have a professional inspection.

More help

An expanded house inspection checklist is available on consumer.org.nz - it will take you around the property point by point to see if the house suits your needs. You can print this checklist and take it with you when you are looking at homes to buy.

Another helpful source of information is BRANZ Home Series Bulletin 4 - Pre-purchase inspections which examines six areas you should research before buying a home:

1. Neighbourhood and environment.
2. Site.
3. House design.
4. Floors and foundations.
5. Exterior walls.
6. Roofs.

You can purchase this from BRANZ.

More detailed information about Property Inspections can be found HERE!.

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