For many New Zealanders, saving for a deposit is one of the biggest milestones on the journey to home ownership. But while the deposit often gets the most attention, it’s important to be prepared for the other costs that might come your way through the purchasing journey.

From legal fees and property reports to moving expenses and ongoing maintenance, the additional costs involved in purchasing a property can quickly add up, especially for first home buyers navigating the process for the first time.

Understanding these expenses early can help you budget more confidently, avoid unnecessary stress, and ensure there are fewer surprises once you’ve found the right home.

LIM Reports

A Land Information Memorandum (LIM) report is one of the most requested documents during the due diligence process.

Issued by the local council, a LIM report contains important information about the property, including:

• Building consents
• Flooding or natural hazard information
• Drainage and sewer details
• Zoning information
• Any known issues recorded by council

While not always mandatory, obtaining a LIM report is strongly recommended before going unconditional on a property. Costs can vary depending on the council, but buyers should generally allow a few hundred dollars for this report.

Building Reports

Even if a home appears well maintained, a professional building inspection can uncover hidden issues that may not be visible during an open home.

A building report may identify:

• Moisture problems
• Structural concerns
• Roofing issues
• Insulation or ventilation problems
• Deferred maintenance

For older homes in particular, this step can be incredibly valuable and may even help buyers negotiate repairs or pricing before settlement.

Solicitor and Legal Fees

Property purchases in New Zealand require legal support, and conveyancing fees are another important cost to factor into your budget.

A solicitor will typically assist with:

• Reviewing the Sale and Purchase Agreement
• Conducting title checks
• Managing KiwiSaver withdrawals
• Coordinating settlement
• Handling mortgage documentation

Legal costs vary depending on the complexity of the purchase, but buyers should expect to budget at least a few thousand dollars throughout the process.

In some cases, lenders may require a registered valuation before approving finance, particularly if you have a smaller deposit or are buying an unusual property type.

Insurance Costs

Home insurance is sometimes required before settlement can occur, especially when purchasing with a mortgage.

Depending on the property, insurance costs can vary significantly based on:

• Location
• Age of the home
• Construction materials
• Flood or coastal risk
• Sum insured

Some buyers may also need to factor in contents insurance and mortgage protection insurance as part of their ongoing household budget.

Rates Adjustments

Many buyers are surprised to learn that council rates are adjusted between the buyer and seller at settlement. This means you may need to reimburse the vendor for any prepaid portion of rates covering the remainder of the rating period. While not always a substantial amount, it’s another settlement cost worth planning for.

Moving Costs

Once settlement day arrives, there can be several moving expenses. Costs may include:

• Removal trucks
• Packing supplies
• Storage
• Cleaning services
• Utility connections
• New furniture or appliances

Even a relatively local move can become more expensive than expected, particularly for families or buyers moving larger households.

If there’s a gap between settlement dates, don't forget to factor in the cost of temporary accommodation. Planning ahead for any short-term living arrangements can help avoid unexpected expenses during the moving process.

Immediate Maintenance and Repairs

Very few homes are completely perfect from day one. Many buyers find themselves spending money shortly after settlement on:

• Painting
• Landscaping
• Heat pumps or ventilation
• Minor repairs
• Appliance replacements
• Curtains or flooring updates

Having a financial buffer set aside after purchasing can help make the transition into home ownership much less stressful.

Healthy Homes Compliance for Investors

For property investors, there can be additional costs associated with meeting Healthy Homes Standards requirements.

Depending on the property, this may involve upgrades to:

• Heating
• Insulation
• Ventilation
• Moisture drainage
• Draught stopping

Understanding these requirements before purchasing an investment property is essential when calculating potential returns and future expenses.

Final Thoughts

Buying a home is an exciting milestone, but preparation is key. Looking beyond the deposit and understanding the full scope of purchasing costs can help buyers make more informed decisions and avoid financial surprises later on.

Whether you’re purchasing your first home, upgrading, or investing, working with experienced real estate professionals can make the process far smoother.

At EVES, our knowledgeable salespeople will help guide you through every stage of the property journey, including helping you better understand the additional costs involved in buying a home, what to budget for, and who to speak with along the way.

If you’re thinking of purchasing a property in the Bay of Plenty, please reach out today for tailored advice depending on your situation.