What Should You Be Looking For When Buying An Apartment Off The Plans?
In New Zealand, particularly Auckland, the growing population and rising house prices have resulted in apartment living becoming an appealing and more realistic option for many first home buyers. Any property purchase is a big decision but buying an apartment off the plans doesn’t need to be a stressful process.
Today's need for an urban lifestyle close to amenities and public transport links makes apartment living a popular choice. Generally, apartments bought off the plans provides an easier entry onto the property ladder through increased KiwiSaver HomeStart grants and lower deposit requirements. Buying off the plans can also prove to be a high performing investment through the capital gains achieved from purchasing prior to construction completion.
Here are 6 things to look for when buying an apartment off the plans to help you along this exciting step in life!
1. Is your apartment Freehold or Leasehold?
It is important to find this information out as it directly affects your ownership. Freehold means you own your apartment and a share of the land it stands on. Where with a leasehold, you are renting the land on a fixed term and need to factor in annual ground rent on top of your mortgage repayments.
2. What do the Body Corporate do?
Each Body Corporate is different so it is important you get an idea of what the ongoing costs and maintenance of your apartment will be. As an owner, you are a member of the Body Corporate and have the opportunity to get involved and take responsibility for the future of your living space. The Body Corporate looks after the insurance, maintenance, landscaping, cleaning of common areas, and ensures the property complies with all regulatory requirements.
3. Location, location, location
Location really is the key, so research what suburbs are on the rise. As the population grows, the city fringe expands and it’s good to know what areas are up and coming. Are there plans to gentrify the suburb? Has council notified plans for development of the area or surrounding suburbs? Where investment infrastructure happens, property prices tend to rise.
4. Reputation of Developers
Check out the developer’s experience. Is this their first build or do they have a history in property development? Is this their primary business activity? Do they have a good record of build quality and completion?
5. Plans & Specifications
Another key aspect to look out for is the floor plan and specifications. Does the floor plan show a layout that makes the most of the space that is functional and liveable? Is there adequate storage? Review the specifications which informs you on the build materials, appliances, finishes, services that are part of the apartment and overall building.
6. Amenities
Is what you enjoy and need in life near you? This can include anything from shops, schools, cafes, gyms, parks and good public transport links. It is a good idea to check out what is close by.
Keeping in mind these 6 things when buying an apartment off the plans will help to reduce the stress factor from the process of purchasing your first home.
Auckland Housing Developments
Realising the challenge first home buyers face finding affordable housing in Auckland's property market, The First Home Buyers Club have compiled a list of Auckland Housing Developments including options for first home buyers.
