Your Next Property Move: A smart guide to buying your next home in NZ

So, you’re thinking about your next property move. Whether you’re a first-home buyer who’s ready to upgrade, a family needing more space, or you’re looking to downsize for a new chapter, congratulations! This is an exciting milestone.

But let's be honest, navigating the property market can feel daunting, even if you’ve done it before. The rules, finances, and your own goals have likely changed since you last bought a home.

At Naked Finance, we believe that clear, straightforward advice is the key to a successful move. So, let’s break down the journey for Kiwis looking to buy their next home.

Step 1: The big picture – defining your "Why"

Before you dive into listings or open homes, take a moment to get crystal clear on your goals.

• Upsizing: Are you needing an extra bedroom, a bigger yard, or moving to a better school zone? Be specific about what your current home is lacking.

• Downsizing: Is this about freeing up equity for retirement, less maintenance, or a lifestyle change? Your focus here shifts from "more" to "smarter."

• The "step-up" buyer: You've built equity in your first home and are ready for something that better fits your long-term plans.

Understanding your core motivation will guide every decision that follows, from the suburb you choose to the type of mortgage you need.

Step 2: The financial health check - It’s more than just a deposit

This is where the rubber meets the road. Your financial situation is different now, and understanding it is crucial.

1. Know your equity: This is your superpower as an existing homeowner. Equity is the difference between your home's current market value and the amount you still owe on your mortgage. For example, if your home is worth $800,000 and you have a $400,000 mortgage, you have $400,000 in equity. This equity can often be used as a deposit for your next home.

2. Get pre-approval revisited: Even if you have a mortgage, you need to know what you can borrow now. Lenders will look at your current income, existing debts, and living expenses. A new pre-approval gives you a clear budget and shows real estate agents you’re a serious buyer.

3. Understand the full costs: Don’t get caught out. Remember to budget for:

   • Legal fees

   • Building inspections & LIM reports

   • Real estate agent commission (if you're selling)

   • Moving costs

   • Potential mortgage break fees (if you're on a fixed rate)

   • Updating wills (let your adviser know if you need help with this)

Step 3: The logistics - The dance of selling and buying

This is the classic "chicken and egg" dilemma for most next-home buyers. Do you sell first, or buy first?

• Selling first: This is often the safer financial route. You’ll know exactly how much money you have from the sale, making you a cash-ready, attractive buyer with no conditions. The downside? You may need to arrange temporary accommodation if the dates don’t align.

• Buying first: This can be less stressful in terms of moving, but it’s riskier. It often requires a conditional offer (like "subject to the sale of my current property"), which can make your offer less appealing to vendors. You also need to be confident your current home will sell for the expected price.

There’s no one-size-fits-all answer. We can help you model the different scenarios based on your financial position and risk appetite.

Step 4: The search & the purchase - Doing your due diligence

Once your finances are in order, the fun begins! But stay vigilant.

• Look past the staging: Visualise the property for your life, not the seller’s décor.

• Get expert advice: A builder's report is non-negotiable. It can identify hidden, costly issues like leaky building syndrome, faulty wiring, or poor insulation.

• Understand the process: 

  • 1 - Make an offer (either by negotiation, tender, or auction)

  • 2 - Going through the due diligence period

  • 3 - Settlement day where the keys are handed over

Knowing these steps inside and out will make the process feel much less overwhelming.

How Naked Finance can help you move forward

Your property journey is unique, but you don’t have to navigate it alone. We’re here to help you:

• Understand your borrowing power and get a rock-solid pre-approval.

• Navigate the financial complexities of using your equity and managing two properties.

• Review your existing mortgage to ensure you’re not paying break fees unnecessarily or are at the best possible rate.

• Provide clear, Naked advice with no confusing jargon, just straight answers.

Ready to make your next move?

Get in touch with the Naked Finance team today for a no-obligation chat about your property goals. Let’s get you where you want to be.