Buying an apartment off the plan can be a fantastic way to get into the New Zealand property market. However, there are a lot of choices out there and finding the right option for your needs can sometimes be a little daunting. To help you on your property investment journey, here are a few tips to keep in mind.

1. Location, location, location

It is a cliche, but it is the most important aspect of real estate. Consider where the off the plan development is located and whether it is (or will be) close to schools, shops, cafes and other amenities. Will potential tenants be able to access public transport? How safe and friendly is the neighbourhood? Can potential tenants walk to most things that they need?

2. Double check the floorplan and layout

Check over the plans very carefully to make sure that you understand exactly what you will be getting, pay particular attention to the size of each room's floor space. Will the bedrooms fit a queen size bed? Can you fit a table on the balcony? It is crucial to understand how well the apartment's floorplan translates into reality. Pay close attention to the plans and specifications, not just the artist's renderings.

3. Research the developer’s background

You are going to be investing a lot of money with this company, so look into them as carefully as you can. What is their track record? What other projects have they done and have they completed them successfully? If you have time, why not go and visit one of their more recent developments? 

4. What is the draw card?

The unique selling proposition of the apartment is the characteristic that makes it stand out from comparable properties. This could be the size and layout of the apartment, the location, or a particular amenity such as parking, a swimming pool, or a private outdoor area. Keep this in mind, as these draw cards will be important later when you are selling the apartment or finding tenants.

5. What about safety?

Make sure that the developer isn’t compromising on safety in order to save money. All regulation safety features should be installed in the apartment, including fire escapes, sprinklers and extinguishers. Make sure that the developer is licensed and has liability for their construction.

6. Get independent legal advice

Understanding all of the legal jargon in your contract can be a challenge, so make sure that you hire a lawyer to help you. Ask them to make sure there is a solicitor’s approval clause within the contract and get them to explain the contract to you so that you understand it. 

7. How will the deposit be kept?

Buying something off plan requires a leap of faith. You will be purchasing something that doesn’t exist yet, based on a few artist’s renderings. When you pay the deposit for the property make sure that it is paid into a Solicitor’s Trust account and that the settlement isn’t paid until the development is built and pre-settlement inspection undertaken. Or, you can use a deposit guarantee bond to ensure that your money is kept safe until completion.

8. Does it meet New Zealand standards?

The NZBC standards set a basic level of quality for fittings, fixtures, floor finishes, balconies, communal spaces, and parking. A good quality apartment should at least meet all of these standards. The best apartments will meet the standards and go above them.

9. What about soundproofing?

Check to see whether the apartment will use the minimum required soundproofing. The New Zealand standard is 55 STC and IIC (sound transmission class and impact insulation class). However, if you can get an apartment with a higher than minimum level of soundproofing, such as 65, this will be much better. It means that you can enjoy peace and quiet in your apartment without hearing the thumping and bumping of your neighbours overhead or next door.

10. Don’t forget the view

What view will the apartment have? Will that view change in a few years with future development? Of course, the nicer the view the more expensive the apartment.

These are just a few important things to consider when buying an off the plan townhouse or apartment in New Zealand. For more information about the ins and outs of apartment living download our free guide.