7 Reasons to Buy off the Plans in 2023

The property market has changed a lot for investors over the last few years and while some things have become a lot harder with old properties, there are more and more reasons to go brand spanking new and you don’t get much more brand spanking new than off-the-plan. 

Here are 7 reasons why investing in an off the plan new build property in 2023 could be a great investment:

1. Lower Deposit Requirements: With off the plan purchases, developers often require a lower deposit upfront, usually around 5-10%, which can make it easier for first-time investors to get started. This means you have more time to save and pay off other debts before your final payment is due.
   
2. Reduced Maintenance Costs: One of the biggest advantages of a new build property is that it requires minimal maintenance in the first few years. This means you can focus on building your investment portfolio rather than worrying about repairs and maintenance.
3. Potential for Capital Growth: Off the plan properties are often purchased at a lower price than the market value at the time of completion. This provides the potential for capital growth as the property value may increase during the construction period and beyond. Additionally, investing in a new build property in a growing area can further increase the potential for capital growth.
4. Tax Benefits: The Government’s recent tax changes have made it clear that investors can no longer claim interest deductions and have extended the bright line tax period to 10 years. However, to stimulate the property market and encourage developers to keep building new properties, the Government has implemented measures that provide benefits to buyers of new builds, including off-the-plan purchases. This includes a shorter bright line period of five years and the ability for off-the-plan investors to claim interest deductions. In addition, some councils offer incentives to further incentivise new builds.
   
5. Energy Efficiency: New build properties are built to meet higher energy efficiency standards, which can save investors money on energy bills and help to reduce the carbon footprint of the property.
6. Warranty Protection: Most new build properties come with a builder’s warranty or defects guarantee, which can provide peace of mind to investors in case any issues arise during the construction or early stages of ownership.
7. Higher Rental Yields: New build properties are often more attractive to tenants due to their modern design and energy-efficient features, which can result in higher rental yields for investors.

Safari Group, one of New Zealand’s premier property development companies, offers a range of off-the-plan investment opportunities, particularly for those looking to enter the Auckland property market.

One of Safari Group’s notable off-plan options is the Augustus Park development located in the prestigious suburb of Parnell in Auckland. This residential development offers freehold apartments starting from $440,000 and is highly desirable due to its location within the Double Grammar Zone, close to the inner city, and with convenient access to public transportation. The development also offers a unique investment opportunity, with a special offer of furnished studios and one-bedroom apartments that provide a modern and convenient living experience.

 

Book an appointment to find out more about Safari Group’s offering.