Key Facts

  • Considering professional advice is crucial before buying a property that requires renovation.
  • Real Estate Authority’s Property Checker tool gives a starting point analysis of potential issues based on house’s basic details.
  • Critical conversations with the real estate professional are necessary to understand the condition of the property. Also, get written confirmation of any disclosed issues.
  • Perform a Land Information Memorandum (LIM) and a title search with Land Information New Zealand (LINZ) to understand the history and specifics of the property.
  • Professional advice from a lawyer, or conveyancer, can be engaged to help with documentations and the sale and purchase process. Also, consider obtaining a building report from a certified property inspector.
  • Before making an offer, it’s important to understand the extent of work involved in the renovation, including budget, timeline, and potential impacts on life.

Article Summary

Belinda Moffat, chief executive of the Real Estate Authority, provides advice for those considering buying a house to renovate. Moffat stressed the importance of having in-depth knowledge of a property’s condition before making a purchase to handle potential renovation costs effectively. She suggested the use of the Property Checker tool from the Real Estate Authority’s consumer information site as a good starting point for determining potential construction, condition, and environmental issues based on the given information about the property.

Moffat also advised having comprehensive conversations with the real estate professional handling the property sale to learn about the property’s condition. Crucially, buyers are also encouraged to obtain a Land Information Memorandum from the local council and perform a title search with Land Information New Zealand for detailed insights into the property’s history and specifics. Furthermore, employing a lawyer or conveyancer to assist with documentations and the sale and purchase process is recommended, along with getting a building report from an accredited property inspector.

Prospective buyers should consult a builder to gauge the renovation time frame and costs before finalizing their offer. Any financial or insurance arrangements should consider the results of these consultations. Lastly, Moffat encourages buyers to consider factors like budget, contingency plans, completion timeline and potential lifestyle impacts before proceeding with a renovation project. Understanding the condition, potential and risks of the property in advance can be key to a successful renovation project.

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