An indicative starting point — not an exact buying-cost estimate
The $3,000–$5,000 guide is not a quote or a reliable total for every property. Legal fees, due diligence, reports and other costs vary. Moving costs are additional. You must obtain quotes from the relevant providers to establish what you will actually need to have available.
$3k–$5k
Before you set your budget
Get quotes to know your actual costs.
We can help you identify the costs to plan for, but Traction cannot give you an exact figure for the funds you will need to purchase a property. The amount depends on the property, your circumstances and the providers you use. Ask your lawyer, building inspector, insurer and any other relevant providers for quotes, and check council fees and lender requirements before relying on a budget.
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These costs cannot come from your KiwiSaver.
Your KiwiSaver withdrawal can only be used toward your deposit — not for legal fees, building inspections, or any other purchase costs. You need to have these funds available separately in cash savings. This is one of the reasons it is important not to put every dollar of savings toward your deposit.
Upfront costs before and at settlement
Your lawyer handles the legal side of the purchase — reviewing the sale and purchase agreement, checking the property title, managing the settlement process, handling your KiwiSaver withdrawal if applicable, and liaising with the vendor's lawyer. Legal fees vary depending on the complexity of the purchase. A standard freehold property is at the lower end. A leasehold, cross-lease, or property purchased under a trust can cost more. Get a quote from your lawyer before engaging them — fees vary between firms and it is worth knowing upfront what you will be charged.
This is not optional — you need a lawyer to buy a property in New Zealand. Budget toward the higher end to be safe.
A licensed building inspector assesses the condition of the property — checking for structural issues, moisture problems, weathertightness, plumbing and electrical concerns, and anything else that could require costly repairs. A building inspection is not legally required but is strongly recommended for every property you are seriously considering. The cost of an inspection is small compared to the cost of buying a property with unknown issues. Get a quote from your building inspector before booking — costs vary depending on the property size and type. If you are attending multiple auctions, you may pay this cost more than once without a successful purchase, so factor that into your planning.
Choose an inspector with professional indemnity insurance and check they work to the NZ Property Inspection Standard (NZS 4306).
A Land Information Memorandum (LIM) is a report from the local council containing everything the council knows about the property — building consents, zoning, any known hazards (flooding, erosion, subsidence), rates, and any unconsented work. Your lawyer will usually recommend getting one, and it is an important part of your due diligence. The cost varies by council and whether you request standard or urgent processing.
A registered valuation is an independent assessment of the property's value, ordered to confirm the bank is lending against an accurate figure. It is typically required when you have less than a 20% deposit, when buying a new build, or in a private sale — but a lender can request one at any time if they feel it is needed. The valuation must be ordered through the lender's approved platform — you cannot arrange your own independently. The cost varies depending on the property location and type. Get in touch and I can let you know whether your situation is likely to require one.
You need house insurance in place from the day before settlement. Your lender will require evidence of cover before releasing funds. The cost varies significantly depending on the property, its age, construction type, location, and the level of cover. Get quotes from multiple insurers and compare — some properties (particularly those with certain construction materials or in flood-prone areas) can be expensive to insure or hard to insure at all. It is worth checking insurability before going unconditional on a property.
Older homes, homes with certain cladding types, and homes in high-risk areas may attract significantly higher premiums. Always check before you commit.
Moving costs are on top of the $3,000–$5,000 figure above — budget for these separately. Whether you hire professional movers or rent a truck and do it yourself, there will be costs involved in getting your belongings to your new home. Professional movers for a standard house typically cost between $1,500 and $2,500 depending on distance, volume, and how many helpers are needed. Moving on a weekday is often cheaper than weekends. If you need storage between moving out of your rental and into your new home, factor that in too.
Ongoing costs to budget for as a homeowner
Beyond the upfront purchase costs, becoming a homeowner comes with ongoing expenses that renters do not pay. It is important to factor these into your budget before you buy — not after.
| Cost | What it covers | Rough guide |
|---|
| Council rates |
Local council levies charged on all properties — covering rubbish collection, infrastructure, and local services. Rates vary significantly by region and property value. Settlement adjustment: If the current owners have paid council rates in advance, you may need to reimburse them for the portion covering the period after settlement. Your lawyer can confirm the adjustment and the amount payable on settlement, so allow for this in your available funds. |
$2,000 – $5,000+ per year |
| Contents insurance |
Covers your belongings inside the property. Separate from house insurance, which covers the building itself. |
$600 – $1,500+ per year |
| Body corporate fees |
If you buy an apartment or unit in a multi-owner development, body corporate fees cover maintenance of shared areas. Costs vary widely — always check before buying. |
Varies — check before buying |
| Life and income protection insurance |
Not legally required, but strongly recommended when you have a mortgage. If you cannot work, income protection ensures your repayments continue. Speak to an insurance adviser. |
Varies by cover and age |
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Test your budget before you buy.
A good way to stress-test your readiness is to calculate your future mortgage repayment plus rates and insurance, then subtract your current rent. Whatever the difference is — that is what you should be saving every week right now. It proves you can afford the repayments and builds your deposit faster at the same time. Use the budget planner to map out your full income and expenses and see where you stand.
Want help planning your buying costs?
We can help you plan for the different costs, but only quotes from the relevant providers can give you a realistic estimate of the funds you will need.
Get in touch →
All cost figures on this page are indicative only and are not quotes or an exact estimate of the funds needed to purchase a property. Actual costs vary by property, location, provider and individual circumstances. Traction Financial Services cannot provide an exact figure for these third-party costs. Obtain your own written quotes and confirm relevant fees before deciding how much money to set aside. This guide is general information only and does not constitute financial or legal advice. Speak with a Traction adviser for personalised advice.
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