Once you’ve found a home you’re interested in you’ll want to check it out carefully. It really is a case of buyer beware. You don’t want to end up with a lemon, or costs you hadn’t planned for. Here are some ways you can check out the place you’re interested in.
1. Check the place out
When you visit a place you like, take your time. Go back several times. Ask the agent lots of questions, and do a thorough check for things you may have to fix or want to change.
2. Contact the council
Ask your local and regional councils for information about the area and any future plans. Talk to the town planners (and ask them if there’s anyone else you should talk to). Ask about the district or resource plan. It sets out the rules for development in the area, including zones and building heights. You can also get things like drainage and building plans and copies of permits for the property from your council.
3. Apply for a LIM report
A Land Information Memorandum (LIM) from the local authority gives you all sorts of valuable information about drainage, roads, flooding, erosion, consents etc. There’s a charge for LIM reports and prices vary around the country but you can expect to pay around $150–$350 (costs are generally higher in the larger cities and you usually pay more if you need an urgent report).
While LIM reports can contain a lot of valuable information they may also be missing vital bits (such as accurate boundaries, or mention of Wahi Tapu or sacred sites), so it’s a good idea to also talk with the staff and try and find out what other information the authority may have about the property and its neighbours.
4. Get expert advice
Get a report on the property from a licensed building surveyor. Make sure you choose someone with a good reputation and ask them what their report will and won’t cover. Also ask them to give you an idea of what it might cost to fix any problems they find. If there could be any problems with the land or large structures you should also get a report from an engineer.
You my also want to check with the Weathertightness service (see the Useful contacts section) to see if there has been a leaky home claim for the property.
5. Check the title to the property
This will tell you if there are any restrictions that could affect your ownership or use of the property. The agent should have a copy of the title. Also talk to your lawyer about the title and any other checks they think you should do.
You might also want to ask your lawyer about title insurance. It could help protect you if you find later on that the boundaries are wrong or there has been illegal work done on the property.
Is the home in good order?
Before you buy a place you want to be sure it’s in good order, or at least know what repairs are needed and how much they may cost. Your best protection is to get a report from a building consultant. But you probably won’t want to pay for a report until you’ve done some checks yourself and are fairly sure it’s the home you want.
Here are a few pointers
When you check the home look for structural problems, or things like rotten wood or leaks that can be difficult and expensive to fix.
Signs of movement and sinking include cracks in walls and doors or windows that are crooked or jammed. Rotting or borer filled timber is soft and spongy. Rotting wood sounds ‘dead’ when you tap it and crumbles if you push a key or something sharp into it.
Signs of leaks include mould, mildew and bulges in the wall. Often the place will smell musty as well. Musty or unpleasant smells can also be a sign of problems with the drains or sewerage.
Be wary of fresh paint and plaster especially if only some areas have been done up – it could well be covering up a problem. Furniture and pot plants can provide good camouflage too, both indoors and out, so don’t be embarrassed to look behind or under them.
Some common problems include
• poor ventilation and lack of insulation
• lead paint and asbestos problems
• dangerous wiring
• deterioration in wall claddings and roofs
• rotting timber windows
• perishing seals on aluminium windows
• breakdown of silicon sealers
• leaky homes.
How much will maintenance cost?
The cost of repairs and maintenance depends on the age and condition of the home. But you’ll probably need to allow at least $3,000-$5,000 a year. It doesn’t mean you’ll spend this much every year. But over the years you will have maintenance costs, sometimes quite big ones, and you need to be prepared for this. Here are some rough estimates based on an average size home. 
|
Some typical costs |
$ Estimated |
|
New roof (steel) |
From $10,000 |
|
New spouting/gutters |
$3,000–$4,000 |
|
Re-wiring |
$12,000–$15,000 |
|
Re-plumbing |
$10,000–$15,000 |
|
Re-piling |
$10,000–$15,000 |
|
Outside paint job |
$5,000–$12,000 |
|
New switchboard |
$3,000–$4,000 |
|
Ceiling insulation |
$1,500–$3,000 |
|
Retaining walls |
$200–250 a metre |
|
Storm water drains |
From 10,000 |
|
Fencing |
From $100 a metre |
|
New kitchen |
$8,000–$20,000 + |
|
New bathroom |
$8,000–$20,000 + |
|
New shower |
$1,000–$,3000 |
|
New toilet |
$300-$1,000 |
|
New carpet |
$6,000–$15,000 |
|
Central heating |
$3,000–$10,000 |
|
New gas or wood fire |
$1,000–$5,000 |