Although buying off the plan is common around the world, it’s a fairly new concept here in New Zealand. If you are new to off plan developments, fear not! You’ve come to the right place.
At the Du Val Group we exclusively develop off plan property and are the second largest apartment developer in the country to do so. There’s a good reason we do it, and in this piece we’ll explain why.
We’ll start with the reason people buy property off the plan:
To make money!
And don’t worry – if you’re reading this because you’re looking to buy a home to live, keep reading because this applies to you too.
When it comes to gaining value on your property, it’s not about when you get into the market - it’s about the time SPENT in the market. What this means is that in places like Auckland where the market has seen proven growth for decades, it really doesn’t matter WHEN you get in – if you hold onto your property for the long term, it will grow in value. This forms the basis of off plan buying.
The best time to purchase off the plan is right at the beginning of the cycle, before it construction has begun. It’s at this stage that prices are the lowest they’ll ever be. Now because the full deposit doesn’t need to be paid until the project is complete, this gives you time during the construction process to put in place a financial strategy towards your deposit.
The great thing about purchasing early in the cycle is you’re able to retain the capital gains accumulated during the construction process. Because this process can take a couple of years, your property has time to build value before it is even complete!
The awesome thing about buying off the plan during the earlier stage of the project is you have greater choice of the properties and prices. As the project progresses, you’ll be amazed at how quickly each home will be snapped up. The best time to buy property is now, so don’t wait around!
Because you’re buying off the plan, your apartment is brand new! This means you benefit from your apartment being built to all the latest standards in construction and insulation. Because of this, brand new properties require much less maintenance and are much easier to manage and rent.