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City Sales is A Specialist in Selling 'Off the Plan'

Wednesday 26 July 2017, 3:02PM

By Beckie Wright

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City Sales is Auckland’s leading specialist agency, providing expert consultation and representation regarding apartment sales, property management and housing investment, and they recently held an event focused on the Auckland property market in general, and purchasing CBD apartments off-plan specifically.c

The evening was by registration only, with over 40 peope attending in City Sales’ new rooms, and many stayed for some time following the formal presentation. City Sales promote only those projects and developments in which they have complete confidence, and they had a Mortgage Broker and a Solicitor present for Q and A’s. They were delighted with the attendance and follow-up is in progress with serious interest expressed.

The essence of purchasing off-plan is it is only necessary to put a 10% deposit down now, and no more to be paid until settlement, which in some cases can be up to two years or more away. What was explained in the presentation is a combination of Auckland’s unique physical landscape, council planning intentions and a predicted on-going shortage of dwellings all adds up to a compelling story.

Buying a property 'off the plan' means exactly that - purchasing property at today's prices prior to construction being completed. Most developers of strata projects are required to secure a number of pre-sales as a condition of bank finance. They may even offer discounts to early purchasers.

In most cases you pay 10% of the purchase price and are entering into a contract with the developer. The balance is paid upon settlement when the building is completed. This can be anywhere from a few months up to two years after the initial contract is signed. Most 'off the plan' purchases are apartments but townhouses, villas and land packages are also available.

The benefits of buying a property at today's prices and settling later is a tempting proposition, especially in a rising market. If the buyer isn't willing to assume the risks associated with off the plan purchases, they may end up paying more for the same property when it is completed and the best apartments in the building may have already sold.

Delayed settlement gives you more time to save for your deposit and plan for mortgage repayments. Another benefit for buyers purchasing new strata units off the plan is the ability to select or vary finishes and fixtures, giving you the opportunity to make certain changes to suit your own taste.

For more information on City Sales and their property management in Auckland please go to http://www.citysales.co.nz .