With a range of new build homes at competitive prices, buying an Onward Homes property makes great investment sense. Each of our properties gets a full rental appraisal and valuation offering security for investors to forecast future yield.
When you buy from Onward Homes you deal directly with the company building your property, not some third-party contractor. This means you’ll have the guidance of our Sales team to help you find the build that’s right for your investment purpose.
While we believe in delivering value for money across all our constructions, many buyers find the value of their home has increased upon completion. And there are financial incentives for buying new as well – with smaller deposits required, and future tax incentives that tilt the balance in favour of new builds.
When you find the Onward Homes property that meets your needs, we recommend getting ii under a conditional contract as soon as possible. This ensures you can ‘hold’ that home and gives you time to arrange finance and satisfy any other conditions that may be subject to your purchase. At Onward Homes, we insert a ‘due diligence’ clause into all our Sale and Purchase Agreements, which allow you to pull out of the purchase of a home if necessary.
With a new build home, you may not need to address some typical due diligence aspects such as a building inspection. However, we believe location, cost and specifications are important factors to consider.
Location is key to real estate and for investment properties in particular. A popular and well-serviced location with good amenities will always keep your property in demand. It may also mean your property increases more in value, relative to other properties in less-desirable areas.
When considering location, look out for:
Easy access to public transport and motorways
Price is the second most important factor when investing in a property. If you want to buy an Onward Homes property as an investment, you are likely to need a 20% deposit. However, if you have an existing property, you may be able to use existing equity to cover the deposit.
It is important to talk to a financial advisor or mortgage broker to find out how much you can purchase. Remember, a better location will generally result in a higher purchase price. Banks have different restrictions for different categories of buyers and types of properties, with some having more favourable lending policies on new builds. All Onward Homes builds are new builds.
Other factors to consider when arranging finance for an investment property are annual rates, insurance, and rental potential. Our Onward Homes team can provide you with a projected rental yield assessment on an investment property.
The last important checkpoint is around the actual details of the home. Understanding the type of ownership structure for the property has a direct impact on what you can and cannot do with it in future.
While there are four main ownership structures in New Zealand, at Onward Homes we only use two: Freehold, and Unit Title.
Freehold
Freehold is the most common and simple form of property title. Under freehold, you can use the house, land and anything attached to that title as you like it.
Unit Title
Unit Titles are extremely common with modern apartment buildings. This means you own a joint share of the land and common property but have exclusive ownership to a specific area.
As Unit Titles, apartments require a body corporate, which is responsible for insurance of the building plus common area maintenance etc. Our Onward Homes sales team can explain how body corporates work and associated annual costs.
It wasn’t that long ago that we all had our sights firmly set on a typical quarter acre section. The ‘Kiwi Dream Home’.
Even at the bottom end of the scale finding a house and land package for under $650k is like finding a needle in a haystack, even in the furthest outskirts in Auckland.
The impact the Corona Virus lockdown has had on New Zealand’s housing market is that of accelerated growth. Higher demand. Higher prices.
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