Apartment buying in NZ

Buying an apartment is similar to purchasing a standalone home, but with a few unique twists. Here’s the lowdown:

• Deposits: Most apartment purchases will require a 20% deposit. Smaller apartments (under 50 sqm) may need a higher deposit, up to 40%.
• Mortgage pre-approval: Chat with a lender to get a handle on your budget and pre-approval.
• Get legal help: A property lawyer is your go-to for navigating settlements, contracts, and all the finer points.
• Buying options: You can buy an existing apartment, a new one, or go off-plan (meaning it’s not built yet). Here are the key things to know about buying off plan.

Learn more about home loans or finding your property team.

• Privacy: Apartment living means you’re sharing walls, so there’s a bit less personal space.
• Limited space: You might not get the spacious backyard, but hey, fewer rooms to clean!
• Personalisation: Your creative touches may be limited to the interior only, with rules on external changes.

Buying an apartment requires a bit of homework to make sure you’re getting the best deal:

• Ownership structure: Most apartments are either unit title (freehold) or leasehold. Unit title gives you ownership of the apartment and shared ownership of the land, while leasehold means you pay an annual ground rent.
• Body corporate: Most apartment buildings have a body corporate that manages common areas. You’ll pay a fee (around $5,000 on average) that covers maintenance, insurance, and amenities. Make sure to check the financial health of the body corporate and any special levies before you buy.
• Insurance: Body corporates usually handle building insurance, but you’ll need contents insurance for your belongings.

Read our full guide on due diligence.

To avoid future headaches, consider a pre-purchase inspection. This will flag any potential issues with weather tightness or structural integrity, giving you peace of mind before signing on the dotted line.

Check out the amenities on offer, too. While gyms, pools, and saunas are nice perks, they can also mean higher body corporate fees. Make sure the amenities suit your lifestyle without breaking the bank.

Read our buyer's pre-settlement inspection guide.

Since your neighbourhood will be your extended “backyard,” consider proximity to cafes, parks, public transport, and work. Spend a bit of time exploring the area before you commit.

Every apartment complex has its own set of rules covering everything from pet allowances to noise control. Ask your lawyer to review these rules to ensure they align with your lifestyle — and avoid any surprises later.

It’s generally easier to purchase an apartment that’s over 50m2 in total size. That’s because apartments under this size are seen as riskier investments by lenders and banks.

Your lender may decline finance on an apartment under this size, charge higher interest rates, or require a higher deposit of up to 40%. With that in mind, depending on your circumstances – it may be better to only consider apartments that are 50m2 or bigger.

Generally buyers who are based overseas and aren’t NZ citizens can’t purchase residential property in Aotearoa New Zealand, with a few exceptions:

Australian and Singaporean citizens can buy apartments in Aoteraoa New Zealand as long as they aren’t deemed to be on sensitive or commercial land.

Most foreign citizens can also buy new apartments that have an ‘exemption certificate’. They must buy directly off the developer.

Read our article on buying property in NZ as a foreigner for more information.

Depending on your personal preferences, the best floor to live on in an apartment may be the top floor. The top floor is usually quieter and less susceptible to break-ins than ground or floor one apartments. It could also receive more natural light and have better views.

These benefits usually come at a cost – apartments on higher floors are often more expensive.

With all that said, lower floor apartments can have their benefits too. Ground floor units may have more options for outdoor space such as courtyards. If your apartment doesn’t have lifts the ground floor could be easier to access.