What should I buy off the plans?
If buying off plans you should be looking for at least 100sqm and at the high end of the, market for top quality apartments.
Buying off plans can be an expensive – so if you are going to go ahead with buying off the plans, you should be buying big, at least 100sqm. When it comes to re sale the bigger you go the better.
Location is key, ensuring you are getting a view or premium area due the amount you are paying.
These investments are perfect for owner/occupiers and particularly for the older generation in terms of there being little to no maintenance and up keep of the property.
With high quality and larger apartments, you will have two bathrooms and the space will more than likely be used well.
Good day, Andrew Murray here from the Apartment Specialists. When would I buy off the plans?
If you look at what is selling off the plans, it is very expensive. It is already away from the masses to a degree. A good off the plan, say two bedroom apartment, you are looking at about $800,000. Sure you can buy ones for about $600,000, but they are generally the cheaper ones in the worst part of the building, or the lower floors with no view.
When I am looking at that demographic, you really want to go big or you want to go large. People who are going to be buying these expensive apartments, and the values are going to go up, they are not that different to the price of houses. The key thing would be size and I would want to be buying at apartment. If it was off the plans at, at least, over 100 square metres and the bigger the better.Probably, maybe even towards 150 square metres.
This is because I see the Baby Boomers, where they're going to be moving out of their houses and looking for an apartment to live. They are not ready to go into an old person's home, it is happening later. Sorry, I don't mean to cause offense in that way. So, that's another one, size.
Then number two is location. It has to be either in the French suburbs, like the high quality suburbs where houses are expensive, or towards the bottom of town. It maybe towards the centre of town, where Aotea Square is, or on the western side towards Wynyard Quarter and around that area. In towards Ponsonby and all that kind of thing, but that's obviously the fringes. That's number two.
Number Three, obviously, the floor plans that's using every square metre. That means it is going to have two bathrooms and not to have too many in a complex. It is about the owner-occupier and that is when I would buy off the plans. This is because I see that is really moving. Although it is expensive now, you are going to be selling to a market where there isn't enough quality stock out there in apartments. An elderly couple can't live in the family home for the rest of their life. There is too much upkeep and there is too much to do. The kids have left home and they are sitting there sort of with their dog.
So, that is what I would be looking for if I was going to be buying off the plans. The reason why I would disregard all the other stock is because you can buy it for so much cheaper in the secondary market. The market that is already been built, and as long as you do your due diligence properly. You go and do building inspections, you look at the developer and the history - you cannot go wrong in the secondary market. Otherwise you are just paying too much.
My opinion is you just are not going to get your money back and I mean you will long term, because obviously property always goes up, but not short term.
Anyway, thank you. Cheers.