Legal and Negotiation Processes
Preparation and Planning
Settlement and Post-Purchase
The Market and Compliance
Viewing and Inspecting Properties

How To Use The Step Guides
Buyer Introduction
Your Current Scenario
Understanding Real Estate Market Dynamics and Influences
Assessing the Benefits of Owning vs. Renting
Assessing Your Readiness and Financial Planning for Homeownership
Establishing a Budget for Property Purchase
Deciding to Work With A Mortgage or Financial Adviser
Deciding on Whether to Proceed with Home Buying
Analysing Financial Capacity for a Mortgage in New Zealand
Getting Pre-Approved for a Mortgage
Proceeding As a Cash Buyer
Attending Property Seminars and Workshops
Exploring Various Mortgage Options in New Zealand
Property Sale Types in New Zealand
Anti Money Laundering Rules and Regulations
Determining Long-Term Goals and Future Plans for Property Buying
Costs Associated with Buying a Property
Creating a List of Must-Haves and Nice-to-Haves
Potential Purchasing Partners for Property Buying
Researching the Housing Market in Your Desired Area
Location and Commuting

Understanding Property Taxes in New Zealand
How to Compare The Values of Similar Properties
Exploring Property Listings and Conducting Online Research for Buying Property
Interacting with Real Estate Agents
Arranging Private Viewings of Properties
Guide to Attending Open Homes and Viewing Properties
Arranging Professional Property Inspections
Seeking Comprehensive Legal Advice Before Making an Offer
Choosing the Right Conveyancing Lawyer when Buying Property
Understanding Legal Obligations and Rights as a Buyer
Considering Community Amenities and Infrastructure
Conditional Offers Versus Unconditional Offers
Formulating an Offer Strategy
Buying a Property at Auction
Buyer First Mover Advantage Offer Strategy
Engaging in Negotiation of Purchase Terms
Ensuring Compliance with Agreement Conditions When Buying Property
Discussing Agreement Details with Your Legal Advisor
Undertaking a Geotechnical Report
Reviewing Property Inspection Reports for Potential Issues
Requesting and Analysing a LIM Report
Requesting and Analysing a PIM Report
Things to Do During Due Diligence Period to Prepare for Move
Advantages and Disadvantages of Using a Moving Company
Organising Home and Contents Insurance
Settlement Day Procedures
How to Deal With Settlement Delays in Property Transactions
Planning Interior Layout and Design
Settling In and Post Purchase Steps
Purchasing Necessary Furniture and Appliances
Tools and Services To Help Manage Your Property & Finances Post Purchase
Re-evaluating Your Budget Three Months Post-Property Settlement

Previous Step
Do you need help with this step?
Next Step
Do you need help with this step?
Buy / Step 22 of 54

Location and Commuting

Making the smart investment: why opting for a pricier property closer to work pays off

One of the most significant considerations a potential buyer faces is balancing the cost of their new home against its location. While a lower-priced property might seem like a bargain at first glance, it is important to think about the long-term implications of your investment, including commute times and travel expenses. In this guide, we delve into why buying a more expensive property that offers lower commute and travel times can be a wiser financial choice than opting for a cheaper home with greater ongoing travel costs.

One vital aspect to consider when buying a property is its potential for value appreciation. Locations that are well-connected and offer short commutes to employment hubs often see faster property value growth than those in outlying or less accessible areas.

Initial Cost vs Long-Term Gain

While properties in prime locations often come with a higher price tag, it's wise to view this as an investment rather than an expense. Over time, these properties are likely to provide better returns on investment due to capital gains. It's not just about the present; it's about the future payoff.

The Power of Demand

The desire for convenience is a powerful driver in the property market. As demand for well-located, accessible properties grows, so does your property's potential resale value. This demand isn't just a trend; it's set to increase as more people prioritise:

  • Shorter commutes
  • Proximity to amenities
  • Easy access to public transport
  • Less travel-related stress
  • Energy Costs and Environmental Impact

Beyond personal finance, there's an environmental cost to consider with long commutes. Vehicles contribute significantly to carbon emissions but shorter commutes can better align with a more sustainable lifestyle. As environmental concerns become increasingly central to policy and lifestyle choices, properties with lower associated commute emissions may become even more desirable.

Living nearer to work often means being closer to social amenities such as cafes, restaurants, parks and cultural venues. These conveniences provide opportunities for socialising and recreation that can enrich your life. Being part of an urban community can offer greater networking prospects both professionally and personally.

Fuel prices are notoriously volatile. By living closer to your workplace or public transport hubs, you insulate yourself from some of this unpredictability. Fixed transport costs like public transport passes can be budgeted for more reliably than fluctuating fuel prices, making financial planning easier and more predictable.

The negative impact of long commutes on physical health is more significant than we often realise. Spending hours sitting in a car can increase your sedentary time, which, according to the World Health Organization, is associated with health risks such as obesity, heart disease and diabetes.

Moreover, longer commutes often mean higher exposure to pollution. Air pollution from traffic emissions can lead to respiratory problems and negatively affect overall health.

On the other hand, living closer to your workplace opens up healthier transportation alternatives:

  • Walking: If your home and office are within a walkable distance, this could serve as a daily exercise routine to keep you physically active.
  • Cycling: For slightly further distances, cycling is a great option. It's not only eco-friendly but also an excellent cardiovascular exercise that can help maintain physical health and improve mental well-being.
  • Public Transit: While still involving some sedentary time, it often requires some walking or standing, thus adding to your daily physical activity.

Having a shorter commute can surprisingly add more flexibility into your life. In today's fast-paced world, unexpected events at work or home are quite common. Whether it's an unforeseen family need or an impromptu work meeting, being nearby provides you with the ability to adapt quickly.

This proximity offers peace of mind knowing that you're always within easy reach if needed. You can:

  • Attend emergency situations at home without excessive travel time.
  • Respond swiftly to last-minute changes in your work schedule.
  • Balance professional commitments and personal responsibilities with less stress.

Insurance premiums can be higher for cars used extensively for commuting over long distances due to increased risk exposure. By reducing your commute distance, you may also reduce your car insurance payments – a saving that adds up over time.

The modern workplace is increasingly accommodating telecommuting arrangements. Living close by could mean more opportunities for partial work-from-home schedules since employers know you're nearby if needed at short notice.

Initially, cheaper properties on the outskirts of cities or in rural areas might appear to cut costs substantially. But the daily grind of commuting can quickly add up financially and personally. Long-distance commutes not only increase fuel consumption and vehicle maintenance but also often result in higher stress levels and reduced personal time. Put it all together and these indirect costs can surpass the savings made on the purchase price of a cheaper property.

Time is one of our most precious commodities and how you spend it has a profound impact on your quality of life. Living close to work reduces travel time, giving you more hours in the day for relaxation, family activities or personal growth. A shift towards greater work-life balance can enhance overall happiness and reduce stress-related health issues.

Previous Step
Do you need help with this step?
Next Step
Do you need help with this step?