Disclaimer:
The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions. All investments carry risk and past performance is not indicative of future results.
Key Takeaways
- Off-plan apartments can involve different contract, settlement, body corporate, and market risks from an existing-home purchase.
- Confirm freehold versus leasehold and the long-term cost impact.
- Review body corporate fees, rules, and maintenance obligations.
- Check developer reputation, plans, and build specifications.
- Location and nearby amenities can influence liveability and future demand, but they do not guarantee value growth.
In New Zealand, particularly Auckland, apartment living can be an appealing and more realistic option for some first home buyers. Any property purchase is a big decision, and buying an apartment off the plans can be more manageable when buyers understand the contract, development, ownership type, body corporate position, finance timing, and settlement risks.
For some buyers, apartment living close to amenities and public transport links can be attractive. Some eligible buyers may use KiwiSaver first-home withdrawal or a First Home Loan pathway when buying an apartment, but eligibility, lender approval, property criteria, timing, and deposit requirements must be checked before relying on those options. Buying off the plans can also involve market risk: the value at settlement may be higher or lower than expected, and buyers should avoid relying on capital gains before construction is complete.
6 Things To Look For When Buying An Apartment Off The Plans
1. Is Your Apartment Freehold or Leasehold?
It is important to find this information out as it directly affects your ownership. Apartments are often unit-title properties. Some unit titles sit on freehold land and some involve leasehold land. Check whether the apartment is freehold/unit title or leasehold, what land or common-property interests are included, and any ground rent or lease terms.
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 usually manages common property, insurance, levies, rules, long-term maintenance planning, and shared services. Compliance responsibilities can be shared between the body corporate, owners, developer, and contractors depending on the issue.
3. Location, Location, Location
Research the specific location, nearby amenities, transport links, council information, planned development, and any body corporate or building context that may affect liveability. Infrastructure and amenities can influence demand, but they do not guarantee price growth.
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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 these points in mind can help you ask better questions before buying an apartment off the plans and reduce the chance of surprises during the purchase process.
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