While it has previously been seen as a risky investment, now with all the information and expert advice available, off-the-plan investments are becoming increasingly popular in the rental property market. Here is what you should investigate before buying off-the-plans.
Location, Location, Location
Location is everything in real estate investing. If the tenant is living in Wellington on a job contract, they’ll value the location over views and sun. A typical tenant won’t have a car, so being walking distance to the main city and close to public transport is especially important.
Check Out The Local Transport
Proximity to the local transport system can be a significant influence on the popularity and profitability of Wellington rental properties.
Look into how close the investment property is to different forms of public transport and the frequency of the service, as many tenants rely on public transport so this can substantially influence how popular the Wellington property will be for future tenants.
This is particularly important when buying properties off-the-plan in the suburbs as it has a high influence of the overall enjoyment of the property.
What Makes The Development Stand Out?
Does it have unique features that other developments don’t have? These unique features can increase the property’s popularity amongst tenants and help you increase the rent value. To avoid misunderstandings double-check you understand how big the property will be in square metres, the property’s layout, and ask about the security and fire safety features.
Have they built it to the minimum NZBC standards or gone above and beyond? Check the seismic rating as this is very easy to compare numbers. Carefully check all the details, such as fixtures, fittings, wardrobe, floor finishing, balconies, parking, and communal spaces to make sure. Interior design is very important to tenants in the apartment market. We’ve seen apartments with great interiors consistently rent 20% more than the identical sized unit down the hall.
Background Check The Developer
Do they have a good reputation? You’re backing them to complete the project to the specification agreed so it’s a good idea to check out their track record of past projects to get a decent understanding on their standard of work and ability to finish on time.
When looking at off-the-plan investment properties chatting to a Wellington Property Manager can help you make a more informed decision. Not only can Property Managers give you a rental appraisal, they can also provide you advice on what type of tenants will be attracted to the property, and any potential issues the property may have when attracting tenants.
If you’d like a free rental appraisal, or help managing your properties, get in touch with one of our Wellington Property Management offices.