If you’re planning on buying a home in New Zealand in 2025, there are some critical pitfalls you need to be aware of before signing on the dotted line. Navigating the property market can be overwhelming, especially for first-time buyers, but understanding what to watch out for can save you thousands of dollars and a lot of regret down the track.
Drawing on extensive experience working with buyers and sellers in New Zealand’s real estate market, this guide highlights five major red flags that often appear during property inspections and how to approach them with caution. Whether you’re searching in Christchurch or elsewhere, these insights will help you make informed decisions and protect your investment.
Buying a home is one of the most significant financial decisions you will ever make. With the current market dynamics in 2025, buyers are more cautious than ever, and rightly so. It’s not just about finding a property you love; it’s about understanding what lies beneath the surface and ensuring the home you purchase is safe, sound, and a good long-term investment.
In this article, we will explore the five real estate red flags every buyer should watch out for when buying a home in New Zealand. These red flags have emerged from years of working closely with buyers and sellers and reflect some of the most common issues encountered in today’s market.
One of the biggest traps in real estate is falling in love with a property at first glance and overlooking underlying issues caused by poor renovations. This is especially relevant in Christchurch but applies across New Zealand.
When inspecting a home, keep an eye out for:
These subtle signs can indicate rushed or unprofessional renovations that may lead to bigger problems later.
Most importantly, always request a LIM (Land Information Memorandum) report [^1]. This document will reveal if any renovations were done without the proper consents from local councils. Unconsented work can become your problem as the new owner, and rectifying it could be costly.
If you have any doubts, hiring a qualified builder or professional building inspector to conduct a thorough building inspection is essential. This is especially true if you’re considering an "as is, where is" property, which often comes with no guarantees and potentially hidden defects.
Remember, a fresh coat of paint can hide a multitude of sins but won’t fix the structural or compliance issues beneath. A detailed building report, ideally addressed to you rather than the real estate agent, will give you peace of mind and a clearer picture of the property’s true condition.
Natural hazards are a serious consideration when buying a home in New Zealand, especially in areas like Christchurch, which is prone to flooding, slope instability, and other environmental risks.
Christchurch City Council identifies several hazards affecting the city [^2], including:
Parts of Christchurch such as New Brighton, South New Brighton, South Shore, and Red Cliffs are particularly susceptible to coastal inundation and tidal flooding. As sea levels rise over the coming decades, these risks are expected to increase.
When inspecting a property, look for signs like:
Don’t rely solely on legal or council advice. Speak directly with neighbours and locals to get firsthand accounts of flooding or drainage issues in the area. Neighbours can often provide valuable insights that official reports might miss.
Requesting a LIM report and a stormwater report is crucial if you’re buying in a flood-prone area [^3]. These documents will highlight any known issues and help you assess the property’s vulnerability to flooding. Remember, if your home floods, it becomes your problem—not the previous owner’s.
In Christchurch and some other regions, many homes were built before the 2010-2011 earthquakes and have not been fully updated or repaired since. Some owners took EQC (Earthquake Commission) compensation but didn’t complete the necessary repairs or upgrades, leaving homes in an "as is, where is" condition.
Before purchasing such a property, ask the following questions:
Obtaining this information is vital because homes without proper earthquake repairs can be difficult to insure and may have reduced market value. Insurance companies can be reluctant to cover properties that haven’t met modern seismic standards, which could leave you exposed to significant risk [^4].
Buying a prequake build without updates means you are accepting a level of uncertainty about the home’s structural integrity and future insurability. It is critical to weigh these factors carefully before making an offer.
In the rush to meet housing demand post-earthquake, many quick-build townhouses and homes have been constructed using inexpensive materials and cladding that may not stand the test of time.
When assessing a property, research the builder’s reputation and track record. Ask yourself:
Poor quality cladding can lead to leaky homes, which are notoriously difficult and expensive to repair. Direct-fix homes, for example, are known for their insurability challenges, and cheap or no insulation can affect comfort and energy efficiency [^5].
It’s important to evaluate not just how a home looks today but how it will perform and age over the next 5, 10, or even 20 years. A home built to last will provide better value and fewer headaches in the long run, whereas a home built to merely look nice may become a costly burden.
The design and layout of a home play a significant role in your day-to-day comfort and the property’s future value and rental appeal.
Everyone has personal preferences, but some layout issues can universally affect a home’s desirability:
When considering a property, review the floor plans carefully and think about how the space will function for your family’s needs [^6]. If you’re planning to rent out the property in the future, consider what tenants might want as well.
Ask yourself:
Sometimes buyers fall in love with a home but realize the layout isn’t quite right. This can lead to regret or expensive renovations later on. Being realistic about the flow and functionality of a home upfront is key.
If you’re a first home buyer, here’s a simple but critical checklist to follow when buying a home in New Zealand:
Following these steps will help you avoid costly mistakes and give you confidence in your purchase decision.
If you’re selling a home, it’s just as important to address potential red flags before listing. Buyers in 2025 are cautious and well-informed, so small issues can deter interest or reduce your final sale price.
Listen to your agent’s recommendations for minor repairs or improvements. These might include:
Taking these simple steps can make a significant difference in attracting buyers and achieving a strong sale price.
Buying a home in New Zealand in 2025 requires vigilance, patience, and careful research. By watching out for poor renovations, flood risks, unupdated prequake builds, cheap materials, and poor layouts, you can avoid many common pitfalls.
Always do your homework, get professional inspections, and seek advice from trusted local experts. Your home is not just a place to live—it’s a major investment, and protecting it starts with being informed.
Whether you’re a first-time buyer or an overseas investor and would like guidance on helping to purchase a property in Christchurch, please feel free to contact our Christchurch-based team via our contact page.
A LIM report provides detailed information about the property’s legal and council status, including any unconsented work, zoning, hazards, and restrictions. It helps you identify potential issues before purchase.
Look for structural integrity, evidence of unconsented renovations, quality of materials, signs of water damage or leaks, and any safety concerns. The report should be comprehensive and addressed to you personally.
Check for local council hazard maps, request a stormwater report, inspect the property for signs of water pooling, and talk to neighbours about flooding history in the area.
This means the property is sold in its current condition without any guarantees or warranties. Buyers must accept any defects or issues present at the time of sale.
Review floor plans carefully, consider how you and your family will use the space daily, and think about future resale or rental appeal. If possible, visit the property multiple times at different times of day.
Sellers should address minor repairs, provide clear documentation, ensure the home is well-presented, and listen to agent recommendations to mitigate red flags that may deter buyers.
Yes. Unconsented renovations can lead to costly compliance issues, difficulties obtaining insurance, and expensive repairs. It’s the buyer’s responsibility once the property is purchased.
Homes that have not been properly repaired or updated since the earthquakes may have reduced market value and be harder to insure, which can impact future resale and living conditions.
When the report is addressed to you, it ensures the inspection was conducted independently for your benefit, reducing conflicts of interest and ensuring you receive unbiased information.
Signs include thin or cheap cladding, lack of insulation, visible wear or damage shortly after construction, and finishes that look rushed or unprofessional.
[^1] Consumer Protection NZ – Building Reports and Red Flags
[^2] NIWA – Floods
[^3] Environment Canterbury – Natural Hazards
[^4] EQC – Managing Your Home Repair
[^5] Real Estate Authority NZ – Weathertightness Issues
[^6] Settled.govt.nz – Property Checker