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Buyer's Guide: The Benefits to Buying off the Plans
What is buying off the plans?
Purchasing a property “off the plans” involves committing to buying a home from a developer during the construction phase.
Since there is no completed structure to inspect, prospective buyers can assess architectural renders and plans (hence the term “off the plans”) to envision the final appearance of the property.
This article touches on six key benefits to buying off the plans.
1. Lower Deposit and More Time to Save
Typically, the initial deposit required when buying off the plans is only 10% with the remaining balance payable upon completion. This gives buyers more time to save before they move into their new property. New developments can take some time to be completed, which gives buyers ample time to get more funds tucked away for settlement.
2. What is buying off the plans?
Purchasing a property “off the plans” involves committing to buying a home from a developer during the construction phase.
Since there is no completed structure to inspect, prospective buyers can assess architectural renders and plans (hence the term “off the plans) to envision the final appearance of the property.
This article touches on five key benefits to buying off the plans.
3. You get a brand new home
Buying off the plans means that you get to move into a sparkly new home once completed! Everything will be untouched and you’ll get to enjoy modern furnishings and fixtures. You will also have peace of mind that everything has been built in line with the latest building standards. Your home will be equipped with excellent insulation, plumbing, electrical work as well as incorporate energy efficiencies. Unlike buying a used property, no repairs will be needed making it a lot less low maintenance in the first initial years.
Image above: Architectual Design
4. House value can increase
When you buy off the plans, the price for your new home is locked in as soon as the contract has been signed. This means that it remains fixed even if the property market goes up during the time that the property is being built. If you are lucky and have chosen a property that is being built in a good location, then you may see the value of your home increase before you have even moved into it. What’s better, is that the agreed price you are paying will generally not change!
5. Less Stress
Navigating the property market can be very stressful. Not only does it take a lot of time seek out potential homes you may be interested in, but when you do find the perfect place, you are then competing against other buyers in auctions or dealing with soaring prices. Any fun and excitement you might start out with, quickly disappears. However, when buying off the plans there is none of this. There is less competition, and you know the cost from the outset. The contract is also very upfront, so you will have a clear understanding of what is included in your property which limits any uncertainty.
6. Early bird prices
When buying off the plans (especially early), buyers can sometimes get a pretty good deal. This is because developers are required by the banks to pre-sell a certain number of properties before the project even starts which means they will often charge a little bit less in the beginning to get the ball rolling. This means buyers can take advantage of these early bird discounts and secure their new home for a great price.
Learn more
Want to learn more about the amazing new build investments that are under construction with Safari Group? Take a look at our Ellerslie, and Parnell opportunities, and then give us a call on 0800 790 790, or email us on sales@safarigroup.co.nz