If you've always wanted to swap the city life for a lifestyle block in the country, now may be a good time to do it - provided you know what you're doing.

The number of lifestyle properties changing hands has dropped to levels not seen for a long time as the number of days to sell increases.

Upper Hutt lifestyle block owner Angela McLeod said, for a lot of people, the dream of owning a rural block did not match the reality.

She and her husband have lived on their 14.5 acre block for 20 years. In that time, she says, she has seen a lot of people get caught out.

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"If you want one just because you want a house in a nice quiet space and the kids want a pony, it often ends up not being what you expect.

"It can be a huge black hole that you keep flinging money down."

McLeod said her block "sometimes" offered a return. They aim to live off the land and raise sheep and pigs for food.

But many people underestimated the work required, she said.

"I don't want to put people off, I love the quiet and the space. But people come out with romantic notions, get 10 acres and don't know how to manage it and end up selling it again. It's sad."

There were a total of 8520 lifestyle properties sold in the year to June 2017, compared to just 6867 in the year to June this year.

In 2017 it took a median 54 days to sell a property. Now, it's 62.

Six per cent fewer lifestyle blocks sold in the three months to June than in the same period the year before.

In Canterbury, the number of lifestyle block sales was down 40 per cent in June compared to the previous month.

Real Estate Institute spokesman Brian Peacocke said sales volumes were at their lowest level in years.

He said there were reports from around the country indicating a much harder stance was being taken by the banks. "Strong equity levels and good healthy cash flow are not necessarily a guarantee of success in applications for funds."

Auckland's market was now deemed challenging, he said. Sales were harder to achieve in the top level of the market. Prices in the $2.5 million-plus category had dropped 5 per cent.

But prices seemed to be holding up nationwide - the median price in June was $690,000, $32,500 higher than last year. Trade Me reported the number of views for lifestyle properties was up 7 per cent, year-on-year, in July.

But the prices vary a lot. According to Homes.co.nz, the cheapest lifestyle blocks are in Waimate, Canterbury, where they are worth a median $466,000 compared to $245,000 for the rest of the area.

The most expensive are in Kumeu, on the outskirts of Auckland, where they are estimated at a median $1.87 million.

But a handful around the country had sold for less than $150,000 including one on Fairburn Rd, Kaitaia, for $140,000. By comparison, the most expensive sale registered on the site so far this year was for a property in Oneroa, on Waiheke Island, that went for $9m.

Homes.co.nz data suggests that lifestyle block owners tend to stick it out - the median length of ownership recorded on the site is seven years, three months compared to six years and four months for a standard dwelling.

Brad Olsen, an economist at Infometrics, said there had been significantly slowing in the lifestyle market through 2017 and 2018. He said the lack of activity probably reflected wider concerns about the rural sector.

The Tax Working Group's proposals had included a capital gains tax on the sale of most lifestyle blocks, which might have spooked some buyers.

Concern in the agricultural sector about the government's environmental plans, Fonterra's recent poor performance and economic uncertainty would affect rural confidence more generally, denting lifestyle property sales.

He said the decline in activity had been steep through 2017 and 2018 but, while sales numbers were still falling, it was not as dramatic as it had been - indicating the market could be levelling off.

Last June, sales numbers were down 19 per cent on the year before.

Real estate chief executive Bindi Norwell said a lifestyle property was still a dream for many people.

"There's certainly something appealing about moving out of a bustling town or city and into the country for a slower pace of life and more fresh air."

But she said there were several things that buyers had to think about that would not apply to a house in town, such as whether it was GST-registered, what could be done with the land and what facilities were in place for water, power and sewerage.

"As with any property purchase, it's important that you do your due diligence on the property and on the land. It's imperative that you seek legal advice as part of the process too. Last, but not least, talk to people in the local area to find out more about what it's like to live there, pick their brains about local schools, business opportunities, the local community or just to try and get advice on issues you might be unsure about."

Geoff Henry, who grew up in Auckland, moved to his Whangarei lifestyle block because his wife rode horses and wanted space to keep them. "We had been living in Cambridge and grazing was expensive. It was always a long-term goal for us."

Even though they had some experience of a rural environment, he said it was "still quite challenging". The property is five acres but required most of the same maintenance equipment that would be needed for a much bigger block. "And if you want to get the place sprayed it can be difficult to get contractors to do it."

He said there was always something that needed to be done, and during winter it could feel like a chore. But he said the family planned to stay put. "If anything we're looking to buy land from our neighbours because my kids have too many horses."

THINGS TO THINK ABOUT

• Understand the tax implications – if the property is currently used for a tax-registered business e.g. running a B&B or grazing stock then the vendor is likely to add GST to the selling price, which means unless you're registered for GST that you'll pay an additional 15 per cent for the property
• What are you able to do and not able to do with the land? Are there covenants on the land that you need to consider? Are you able to subdivide the land? Can you lease out spare land for livestock grazing? These are important areas to understand, and could be the difference between your lifestyle property purchase fulfilling a dream or creating a nightmare
• Think about the commute – if you're planning to head back into town on a regular basis, is the commute bearable at peak traffic times, or can you commute off-peak? It's also important to consider the cost of petrol – trips back to town to see friends and family can quickly add up over the course of a year
• Internet access – there are still significant pockets of New Zealand where broadband is either not available or where download speeds are very slow. If you plan on working from home, you'll want to make sure you can get good internet access, or this will likely become a source of frustration very quickly
• What is the state of the fencing on the property? Is it electrified, is it in a state of disrepair? Fencing can be an expensive to fix so it's worth taking this into account as part of your overall budget
• Facilities – are water, power and sewerage already connected to a site or is this something you would need to arrange yourself? Is there a bore on the property? If so, are there limits on how much water can be drawn?
• Easements – Are there any easements on the property in relation to access e.g. a shared driveway or restrictions about what you can do with the land?

Source: Real Estate Institute