Home Buyers Guide

A few months agMarcusB+o Marcus Beveridge, Queen City Law principal, authored a brief guide to buying a home in Auckland. The guide was based on over a decade of conveyancing work in the Auckland property market. Queen City Law has often had to represent clients who have had property deals go sour, or property deals that have become far more expensive than the purchaser originally intended.

To read more about hidden costs to home buyers please read our earlier post Auckland Conveyancing.

There are a number of hidden costs for home buyers these can include:

1. LIM Report

A Land Information Memorandum or LIM report can be obtained from the relevant city council, the price varies depending on the council and the urgency but is generally between $250 to $400. It is an important condition to include in sale and purchase agreements as a LIM report contains all the information the council has on file for the property including resource and building consents, zoning and more.

2. Structural Building Report

Always obtain a building inspection report to ensure the property is structurally sound and weather tight. A report obtained from a qualified building inspector will cost in the region of $350 to $900 depending on the size of the house and depth of service.

3. LMI and Loan Application Fees

Some banks charge loan application fees of around $400. Also if you are borrowing more than 80% of the value of the property the lender is likely to charge a Lenders Mortgage Insurance Premium (LMI) fee which varies depending on the perceived risk and amount you are borrowing. This is often added to the amount you are borrowing so you don’t have to come up with the funds upfront.

4. Conveyancing Fees

For a standard residential purchase conveyancing may run between $650- $2000 while you will also have to cover LINZ registration costs, search fees and associated costs.

SOld-QCLTo read more about hidden costs to home buyers please read our earlier post Auckland Conveyancing.

Queen City Law  is a law firm based in Auckland. We are specialists in providing legal services for conveyancing and property transactions of all descriptions. Our lawyers speak Spanish, Korean, Chinese, Filipino, Indonesian and English. We are extremely experienced in conveyancing in the Auckland region, but for that matter have acted on property deals throughout the country.

To read more about Marcus click here. To find out more about our conveyancing services contact us.