Hidden Costs of Buying a House in NZ

The Deposit Isn't the Only Cost

Most buyers budget carefully for their deposit and then get caught out by everything else. As a rule of thumb, plan for an extra 1–2% of the purchase price in additional costs on top of your deposit — for a $700,000 property, that's roughly $7,000–$14,000 you'll need in cash before or around settlement, separate from your mortgage.

calculator and house model representing buying costs

Legal / conveyancing fees

Typically $1,500–$3,000 for a standard purchase, covering agreement review, title checks and settlement.

Building inspection

Usually $500–$1,200 depending on property size — the cheapest insurance you'll buy in the whole process.

LIM report

Ordered from the local council, typically $250–$400, and takes 1–2 weeks to arrive.

Rates and insurance adjustments

You reimburse the seller for rates they've prepaid past settlement day, and need home insurance in place before settlement.

Cross-lease and unit title properties often cost more in legal fees due to extra checks on the flat plan and body corporate documents — budget accordingly if you're buying one of these.

Get a fixed-fee legal quote

Ask your lawyer for an estimate covering both fees and likely disbursements.

Set aside inspection money upfront

You'll pay for the building inspection and LIM during due diligence, before you even know if the deal will proceed.

Get home insurance quotes early

Insurers may decline or price higher for older homes or flood-prone areas — confirm cover before you're locked in.

Budget separately for moving

Movers, connections, and the incidental costs of setting up a new home add up quickly.

Quick Summary

Budget 1–2% of the purchase price beyond your deposit.
Legal fees: $1,500–$3,000. Inspection: $500–$1,200. LIM: $250–$400.
Don't forget rates adjustments, insurance and moving costs.

Hidden Costs of Buying a House in NZ (Beyond the Deposit)