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Thread: Buying a house - how much is the initial deposit?

  1. #1
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    Default Buying a house - how much is the initial deposit?

    Hi everyone

    Just wondering - when buying a house in Auckland - what is the expected deposit to secure the purchase after you win the bid at an auction? What percentage is it of the property price and how much are usual interest charges for loans ? Is there a website that perhaps someone can share that gives me this info? Also is there a website that shares the last transacted prices for homes in any particular estate in the same period? Last thing is there an annual property tax and other fees like council and conservancy that go into home ownership in Auckland?

    Thanks for any help or advice that you can offer.

    EY

  2. #2
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    Deposit is usually around 10% of purchase price.
    Interest rates vary, you can look at bank websites.
    There's info about buying a house here
    http://www.reaa.govt.nz/ForBuyersAnd...ndSellers.aspx
    https://www.sorted.org.nz/guides/buying-a-first-home
    http://www.realestate.co.nz/resource...urces/auctions
    You can look up council rates on a property here
    http://www.aucklandcouncil.govt.nz/E...tesSearch.aspx

  3. #3
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    10% deposit is the minimum but is rarely offered to many borrowers. The exception is for those with high income or are getting a new build house. You are most likely to need a 20% deposit if you are buying a complete house.

    NZ doesn't pay "property tax" per se but do pay rates. And rates are determined by the government valuation of the property you owned. Generally the more expensive the property you own, the more you pay in rates.

  4. #4
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    Thank you so much for the info and the links - much appreciated!

  5. #5
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    Thank you so much - noted - I guess there are also stamp duty and lawyers fees to add on to the deposit. Thanks for the answer on property tax - and the rates. I will go look them up. Much appreciated.

  6. #6
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    Quote Originally Posted by eyky View Post
    I guess there are also stamp duty and lawyers fees to add on to the deposit.
    there's no stamp duty in NZ

  7. #7
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    Legal conveyance fees by lawyers is typically around $1000 for the buyer.

    I prefer the term 'property tax' than 'rates' as it's more descriptive to taxes relating to the ownership of property. The term 'rates' is synonymous because local councils assess a tax to property owners based on a valuation. However no matter which direction the valuation goes - it seems the amount of 'rates' or tax you pay always goes up and it's not spelled clearly what % tax 'rate' they use on the assessed value. It's a moving target.

  8. #8
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    Thanks for the legal cost estimate. In Singapore where I come from - they have conservancy rates which are fairly reasonable and on a monthly basis (these are town council rates for estate maintenance) and property tax rates (4% of the annual valuation if its owner occupied and 10% if its tenanted) so wanted a rough gauge as to what kind of annual cost we are in for if we buy. Guess will have to cross that bridge when we come to it. Thanks so much for replying! Much appreciated!

  9. #9
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    Quote Originally Posted by eyky View Post
    they have conservancy rates .. and property tax rates ...so wanted a rough gauge as to what kind of annual cost we are in for if we buy.
    you pay rates to the Council, and there is no (other) property tax. As an example, the annual council rates on my home in west Auckland is $2500. You can pay annually, or in quarterly, monthly or weekly instalments so you don't have to come up with the whole cash amount at once.

  10. #10
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    Aside from the rates, there is the monthly cost of paying for water (some charges are fixed), and of course property maintenance on your house which is your own doing.

    As pointed out, rates are tied to the government valuation of your property, the region and suburb you live in etc but generally you can expect to pay around $2000 per year or more for a medium, average house in Auckland.

    Many banks pay off the legal fees when you obtain a loan. However you need to be a resident of NZ or at a minimum, work visa holder with a full employment contract in order to purchase a house in NZ with a bank loan.

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