How high are realtors’ and lawyers’ fees in New Zealand? What about other property purchase costs?
|Registration Fee||NZD21 (US$18) – NZD50 (US$42)||buyer|
|Legal Fee||NZD700 (US$584) – NZD2,000 (US$1,667)
NZD600 (US$500) – NZD1,000 (US$834)
|Real Estate Agent´s Fee||3.5% - 4% (+ 12.5% GST)||seller|
|Costs paid by buyer||0.21% - 0.74%|
|Costs paid by seller||4.04% - 5.00%|
|ROUNDTRIP TRANSACTION COSTS||4.25% - 5.74%|
| See Footnotes
Source: Global Property Guide
Nonresidents are allowed to buy a house in New Zealand. It should be noted, however, that the purchase of property does not give the buyer any right to live permanently in New Zealand.
If the investment involves less than NZ$10 million, no official clearance is needed; otherwise, authorization from the Overseas Investment Office is required if a non-resident wants to acquire sensitive areas such as agricultural land exceeding 5 hectares in area, or exceeding NZ$10 million in value. Authorization is also needed for the acquisition of islands, or land containing or adjoining reserves or heritage areas, and foreshores or lakes in excess of 0.4 hectares.
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Land Title Lodgement Fee is NZD21 (US$18) via electronic lodgement and NZD50 (US$42) via postal or drop box lodgment. Fee for new titles is at NZD106 (US$88).
A lawyer or conveyancer certifies that documents are correct and in order for registration. Conveyancer´s or lawyer´s fee is negotiable, usually ranging from NZD600 (US$500) to NZD2,000 (US$1,667). It is typical that the buyer and the seller hire their own lawyers.
#1 JAMES LIVINGSTON | March 01, 2013
My company is interested in purchasing up to 100 rental properties in the Auckland region.
These would be preferably in the lower end of the market. Any advice from readers??
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