What do you need to know?

Owning a lifestyle block can offer the perfect blend of space, tranquillity, and freedom, away from the hustle and bustle of Christchurch city life. There are plenty of advantages to buying a lifestyle block – but there are also plenty of things to think about before you make that life changing decision.

Here are the top 5 things you need to consider before buying a lifestyle block:

1. Water Supply

In rural areas across Canterbury, many lifestyle blocks are not connected to the council’s water supply system. Instead, they often rely on private water sources such as wells or water tanks. There is increasing concern about water quality in the rural environment, and you should think about how important water quality is to you.

Here are some key considerations:

Water Quality:

• If water quality is important to you (for example if you have babies or vulnerable children/adults), we recommend that you arrange to have water supplies tested to ensure the supply is drinkable and meets water quality standards. This is especially important if the water supply is from a private well.

Source and Maintenance:

• It is also important to make sure that you understand where the water supply comes from – particularly if the supply is located on another property. Make sure you know where any easements go and understand the terms and conditions. Private water supplies can involve additional costs – e.g., to maintain pumps and water quality testing.

Water Usage Limits:

• Be aware of restrictions on local water schemes. Many council rural water schemes have limits on the amount of water able to be delivered to the property. If you plan on irrigating your land, make sure you have access to an appropriate water source and a resource consent to take and use water. In over-allocated water zones, like parts of Canterbury, securing a new water resource consent may be difficult and expensive.

2. Sewage Disposal

As with water, many lifestyle blocks in rural Canterbury are not connected to council sewer schemes. This means that sewage disposal is “on-site” – either through a septic tank or wastewater disposal system.

Before purchasing, make sure you:

Check Maintenance Records:

• Septic tanks and other wastewater disposal systems need regular maintenance. Make sure you understand the requirements for maintaining the wastewater system and consider requesting maintenance records from the vendor. If the property has an older septic tank type system, make sure that the vendor will empty the septic tank prior to settlement.

Understand Consent Requirements:

• Depending on the size of the property, a resource consent may be needed for the wastewater disposal system. If a consent has been granted, it may need to be transferred to you on settlement.

3. Land Covenants and Consent Notices

Make sure you know whether there are any land covenants or consent notices recorded on the title.

These covenants or notices may dictate how you can use the property including:

Subdivision or Building Restrictions:

• Many rural properties have covenants that prevent future subdivision or limit the number and type of buildings that can be built. Consent notices may require engineering or geotechnical investigations before building – or specify minimum floor levels for new buildings.

Animal and Property Use:

• Some covenants can limit the number or type of animals you can have or restrict certain activities – for example, whether you can plant trees, or use the property for commercial uses.

Maintenance Obligations:

• Covenants may also impose obligations on you to maintain or manage the property in a certain way or contribute towards costs of shared water supply schemes.

4. Surrounding Land Uses

Many people forget that the country can (at times) be a noisy, smelly, dusty place especially if the surrounding properties are working rural businesses. When you make the move to rural Canterbury, you might be affected by:

Farm Operations:

• Effluent spreading, harvesting, spraying, fertilizer application and frost protection are all common activities in the rural environment. However, these are also activities that can be noisy or smelly and can have an impact on neighbouring owners. Make sure you do your homework by finding out how the surrounding land is being used (or can be used) to avoid any unwelcome surprises.

Planning Rules:

• Councils try to minimise complaints about rural activities by planning methods such as setbacks on rural boundaries and zoning rules. The LIM for the property will often list consents granted for neighbouring properties and provide information on zoning. This can help understand what type of activities are able to take place on neighbouring properties so you can consider whether these will affect your plans.

5. GST and Tax Implications

Unlike residential property, buying lifestyle blocks can come with GST implications.

Make sure you get accounting advice before you sign on the dotted line and consider these points:

GST on Purchase:

• Understand the GST situation for the property. For example, is the vendor registered for GST in relation to the sale? Is the purchase price “plus GST (if any)”? You will need to check these details and talk to your accountant if you are not sure – the last thing you will want is an unexpected GST bill on top of the purchase price on settlement.

Running a Business:

• You might be thinking about registering for GST and running a business from your new home but you would be well advised to talk to your accountant first. There are many things to consider before making this decision and getting it wrong can be very expensive.

Why Legal Advice Is Crucial

Buying a lifestyle block can be complex, with many unique legal factors to consider. At Cavell Leitch, we specialise in rural property law in the wider Canterbury region. Our team can help you navigate the intricacies of land covenants, water rights, and other rural legal issues, ensuring your purchase goes smoothly.

If you're considering purchasing a lifestyle block, contact our experts for a consultation today. We’re here to guide you through the process and provide tailored legal advice for your rural property purchase.