McLennan – investors need not apply

December 19, 2016
Media statement

McLennan – investors need not apply

Buying off the plans is a good option for prospective home buyers, but the sale price of a house within a development should not be taken at face-value alone. There is important due diligence buyers must do.

Barfoot & Thompson Projects Manager Matt Baird explains why all developments are not alike and what questions buyers should ask.

“When looking at buying as part of a new development, it’s important to look beyond the purchase price and give the other terms and conditions their due consideration as well as doing your research into the developer’s track record. A bit of upfront homework can save your skin in the long run.

“McLennan is a flagship example of a well-planned housing development designed to promote home ownership, create a vibrant community and address Auckland’s housing shortage.

“Purchase is only open to owner-occupiers and there are a number of homes that qualify for the Government’s HomeStart grants.

“The whole project has been mastered planned, resource consents have been issued and building partners have been carefully selected. This process gives certainty to buyers and the project, which in turn means costs are controlled,” says Mr Baird.

Development of McLennan is staged with phases 1A, B and C completely sold and some owners already moved in. Stage 1D is the next lot now on offer. Twenty-three quality two, four and five bedroom houses with insulation, double glazing, that have been designed by Studio Pacific are available.

“Building timeframes can range significantly between different developments. For example, individual houses in the McLennan development in Takanini are being completed within 6-9 months – buyers will be able to move into 1D in late 2017.

“It’s reasonable to expect shorter timeframes for master planned housing projects than large apartment buildings, but in either case large price escalations reflect poor planning.

“My advice to buyers is to triple check contracts, particularly around sunset dates, the technical term for when projects need to be finished and what happens if extra time is needed,” he concludes.

Barfoot & Thompson is involved in a number of successful, well-planned developments and offers the following advice for buying off the plans:
1. Research the reputation of the developer – inspect other projects they’ve done.
2. How does the development stand out from the rest?
3. Is it built to minimum standards (NZBC), or have they gone above and beyond?
4. Inspect the location - how close you are to local amenities, cafes, shops and education providers. Where are the transport links?
5. Find out about the soundproofing
6. Make sure you understand how big your house is actually going to be by checking the square meterage and understanding any ‘wasted space’ like hallways and cupboards.
7. Are you going to get plenty of natural light and sun?
8. Read the rules on the body corporates and/or residents’ society.
9. Ask about security and safety features etc.
10. Triple check your contract and get good independent legal advice. Ask where the deposit will be held, what is the length of the conditional period, and if there's a sunset date?

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