1. KiwiSaver Withdrawal for First Home Buyers

If you're a member of KiwiSaver, you may be eligible to withdraw most of your savings to help buy your first home. To qualify:

• You must have been in KiwiSaver for at least 3 years
• The home must be your principal place of residence
• You must not have owned property before (with some exceptions for previous owners in similar financial situations)

2. Check for Land Contamination or Environmental Risks

Before buying, find out if the land or property has a history of contamination, such as:

• Use for industrial or agricultural purposes
• Old fuel tanks or chemical storage
• Neighbouring properties with similar risks

Request a Land Information Memorandum (LIM) from the council and consider a site investigation if you have concerns. You may be able to negotiate with the seller for clean-up work or legal protection if issues are found.

3. Understand the Legal Contract

Any agreement to buy a home must be in writing and signed by both parties to be legally binding. It’s essential to:

• Have a lawyer review the sale and purchase agreement before you sign
• Understand all the conditions, such as finance, builder’s report, or LIM approval
• Make sure everything agreed verbally is recorded in the contract

4. Do Your Due Diligence

Don’t skip the basics. Check:

• The building’s condition (get a professional building inspection)
• Zoning rules (can affect what you can do with the property)
• Code compliance (was any work done without council consent?)
• Resource consents (check there is no on-going compliance monitoring as this passes on with the title)
• Body corporate rules (if you’re buying a unit or apartment)

Tip: Your lawyer can help request and review the LIM report and the title to identify any red flags.

5. Be Aware of Misrepresentation

Sellers and agents must not mislead buyers. However, you should not rely solely on what you're told by the vendor or real estate agent. Always:

• Get independent building and pest reports
• Ask direct questions about any known issues
• Document everything in writing

If you're misled and suffer a loss, you may have legal remedies, but prevention is always better than a dispute after purchase.

6. Plan Your Finances Carefully

Understand your financial position and get pre-approval for a mortgage before you start house-hunting. Consider:

• How much you can really afford (including rates, insurance, and maintenance)
• Whether you’re eligible for the First Home Grant
• The impact of interest rate changes on your repayments

Buying your first home is a major milestone. With the right guidance, legal support, and careful planning, you can avoid common traps and feel confident about your purchase.

Thinking of buying your first home? Talk to one of our experienced property lawyers today. We’ll guide you through the process and help protect your investment.

Disclaimer: The information in this article is intended for general guidance only and should not be relied on as legal advice. While we aim to provide accurate information, it is not a substitute for professional advice specific to your situation. Please consult a qualified lawyer before taking any action based on this content.