Property Ownership: The Reality of Property Rates and Related Costs

When it comes to purchasing a property, most first-time owners will think that the cost of the property, which includes paying the purchase price and loan repayments, is all that needs to be calculated in fortnightly or monthly payments. However, they quickly realise that this is not the case, as property rates and other related costs become apparent.

Marie Castle, an Aucklander who had bought two empty land sections in 2012, was forced to sell her properties after failing to pay property rates (as reported in Stuff NZ). Castle had failed to pay property rates, a form of property tax levied by a local council that is used to help fund council operations and benefits such as rubbish collection, public transport improvements, reserve or park maintenance, and so on.

Castle owed the council $12,185.53 by February of this year, which had racked up from outstanding rates and penalties that were unpaid.

Property rates and other related costs are a part of property ownership. Depending on the type of property you intend to own – whether that’s a commercial, industrial or residential property, or even a section of land – you’ll need to be fully prepared for what’s to come.

Related ownership costs not only include local property rates, but also maintenance, insurance premiums, cleaning, pest control, accidents or emergencies, and general upkeep.

Purchasing a property is a large financial and legal commitment that will need careful planning and advice to ensure you have all the tools you need to afford the costs of property ownership.

For more information on property law, asset protection, and more visit the Gillespie Young Watson Law website today at https://gywlaw.co.nz/.