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Despite this, there are a few things you should consider negotiating with the developer. Your solicitor should be well-versed in what to look out for in your agreement, but there are some things to consider that may seem frivolous now but will cause varying degrees of inconvenience down the track.

Here are 5 things we’ve learnt to watch out for when purchasing a new build as an investment property:

1. Healthy Homes Compliance

By law, all rental properties must comply with the Healthy Homes Standards. By building to the current building standards, a good property developer will have the healthy homes bases covered. However, it isn’t uncommon to see a property (even a new build) fail a healthy homes inspection - particularly in the heating department. To mitigate unforeseen costs down the line, ask your solicitor to insert a clause in your agreement that specifies that the property must comply with the Healthy Homes standards. This will ensure that if, for example, the heat pump installed is too small for the space, the developer will be responsible for covering the upgrade costs.

2. Lawn Condition

We’ve learnt from experience that “lawn” doesn’t necessarily translate to a well-manicured patch of grass. Sometimes it ends up being a patch of mud with some scattered greenery (think weeds and the odd tuft of grass) that has sprung up during the building phase! When buying a brand-new property, confirm with the developer what landscaping is included. If the plan includes a lawn, make sure to negotiate and agree in writing that it will be of good condition.

3. TV Aerials

Woohoo! Your awesome new tenants are about to move into your brand-new investment property, they’ve bought themselves a flash TV and have told you that they can’t wait to set it up and make the place feel like home. Suddenly, it dawns on you that you don’t recall seeing a TV aerial on the plans, let alone on the completed dwelling. To prevent potential “heartbreak” and inconvenience when your tenants move in, we recommend negotiating any desired TV aerials with the developer (before you sign the agreement).

4. Laundry Storage

The laundry may not be your favourite space, but it’s one of the most important areas to get right! We’ve seen more than our fair share of new builds that have missed the mark in the storage department. To ensure you don’t end up with a less-than-functional space, consider hiring a cabinet maker to take care of the laundry cupboards and benchtops.

5. Window Treatments

Unfortunately, new build plans often exclude window treatments (blinds and curtains). The best time to plan for window treatments is during the construction phase of a build. This way, the installation process can begin early, and everything will be ready by the time your tenants move in. Planning and negotiating window treatments with your developer is particularly important if you require special mounts for a “built-in” look.

Whether you’re a first-time property investor or looking to add more properties to your portfolio, buying an investment property can be a time-consuming and daunting process. Here at Propertyscouts, we’re trained negotiators who can help you with the purchase negotiations once you’ve decided to buy. Get in touch with your local Propertyscouts team for more information!

 

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DISCLAIMER: The above advice is written by Propertyscouts New Zealand (2020) Limited and is intended as a broad guide for educational purposes only. The advice should not be regarded as legal, financial or real estate advice. In all instances, you should make your own inquiries and seek independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.

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