Investing in an off-the-plan Property:

When investing in an off-the-plans property, this is what we recommend looking for. DDL attempt to cater to the entire market of home buyers. In 1975, purchasing a home in New Zealand would have cost you $24K. By 2019, that number had risen to an average of $550,000. It is impossible to ascertain whether housing inflation in New Zealand will stop any time soon; and all signs point to further increases in prices.

Due Diligence

Due diligence can be defined as a check of a property undertaken by a prospective buyer to establish liabilities and assets, and to evaluate its potential. It is important to do your own research, but our sales team should be able to help you find potential in a DDL build for investment purpose. Finding a property that suits your needs can be difficult we recommend getting it under a conditional contract as soon as possible. DDL include a due diligence clause in all our Sales and Purchase agreements. This allows you to pull out of the purchase of this home if necessary. This creates time for you to create a deposit and ensures hold on your preferred home. With DDL products we have limited stock especially with our affordable price so putting a property on hold can be important.

DDL believe that when completing a due diligence Location, Costs and Specifications are important factors to consider.


Location can be a highly beneficial factor to an investment property, as this can increase the value of the property, especially long term. A few amenities that would be good to look for are:

  • Good School Zones
  • The property being in a sought-out area as opposed to a niche market
  • Easy access to public transport, alternatively easy access to motorways
  • Shopping Centres
  • Public Amenities (i.e. swimming centre, libraries and gyms)

Cost is the second most important factor when investing into a property. We believe that it is safest to provide a 20% deposit for an investment property purchase, however if you have existing property, you may be able to use your equity to cover the deposit. It is important to talk to a financial advisor to ensure you can purchase. Keep in mind the better the location the higher the value could be. To ensure you aren’t overpaying use sites such as REINZ or QV for comparison costs.

Another important cost to ask about is the Annual Rates whether it is an investment or a home this should be taken into consideration. Because of the size of an average property purchase, you’ll potentially must require some form of funding. Banks seem to give more favourable percentages to first home buyers and new properties. This could be beneficial as all DDL builds are new builds.

Rental Yield is an important consideration. Our team provides rental yields for properties we believe are going to be successful investments but an easy way to figure out your own yield is for every 100K worth of debt is $100 a week. An example is if you purchase a 500K home and get rent of $500 a week. You will receive a 5% gross yield.


The last important checkpoint is the actual details of the home. Understanding the type of ownership has a direct impact on what you can and cannot do with the property. There are four main types of ownership but if purchasing a DDL home we only use Freehold and Unit Title.

 A free hold also known as a fee simple is the most common type in New Zealand and means the property is fully owned by you and you chose what you can and cannot do with the property, there Is no Body Corporate either.

Unit Title is different and only makes sense for our apartments. This means you own a joint share of the land and common property and have exclusive ownership to a specific area. Apartments are considered Unit Titles meaning by law they require a body corporate. The body corporate is responsible for the insurance of the building as well as any common areas. The body corporate annual costs are shown in the Body Corporate Agreement our team will be able to explain further.

Build Specs is a perk of purchasing off the plans. It is super easy to gain access on all the build information and specs. Important building specifications could be:

  • Measurements
  • Cladding
  • Well-known Brands
  • Inner tenancy wall
  • The complexity of design
  • Insulation
  • Flooring
  • Landscaping

No matter what you are purchasing all property is required to use the same document the sales and purchase agreement. There is a 3-step process to consider:

  1. Conditional Contract
    After all the research and signing the contract it becomes a conditional contract and you will have 2 weeks to prepare a deposit and commit.
  2. Unconditional/Deposit Paid
    This means you have paid a deposit and the contract has gone unconditional. This is a legal document meaning you are now committed. Keep in mind for DDL the deposits paid will stay in our Lawyers trust account meaning it does not get spent and in any emergencies the deposit can be returned.
  3. Settlement
    This is where the money changes hands and so does the property ownership.