Buying off the plan has always had its perks – but when you look at New Zealand’s highly competitive housing market alongside the sheer volume of new building consents, it’s easy to see why this is becoming an increasingly popular avenue for prospective homeowners.

So, what does buying off the plan mean? To put it simply, it’s when you purchase a property that’s not yet been built based on plans. Developers with houses or apartments underway sell them to people based on the perceived end result.

You may wonder why this is more appealing than buying an existing property, but the benefits are clear: you get a brand-new home, built to modern, high-quality standards; your deposit is lower (around 10%); it’s a fixed price (and on a first come, first served basis – meaning you avoid the unnecessary costs and stresses that come with auctions); and the construction period gives you plenty of time to get your finances in order. Plus, with the trajectory of property value, you’re likely paying less up front than you would if you bought it after completion.

Of course, there are a few horror stories out there. Not every project goes to plan – delays can hold up your life, and the finished property can sometimes be a far cry from what you expected.

Thankfully, these nightmare scenarios are entirely avoidable if you do your due diligence. Check out our five expert tips below to ensure everything goes smoothly.

1. Research developer reputation

At the end of the day, you’re buying a promise – and a promise is only as good as the person who’s making it. To avoid delays, financial mismanagement and subpar quality, it’s important to research the track record of developers. Look beyond their website and seek independent reviews – even check out some of their completed projects if possible.

Here’s a good example of transparency – the process is clearly laid out, there’s a catalogue of current and completed properties, testimonials from homeowners, and you’re encouraged to reach out and talk to the developers, so you can get a sense of how they do business.

Trustworthy developers will make or break your property, so this is by far the most important step.

2. Know your neighbourhood

It’s easy to get caught up in the intricacies of the plan, but don’t forget to research the area around your potential property. Check the amenities, transport links – education providers, if you have kids. If the neighbourhood is lacking, see whether there’s any investment in the surrounding infrastructure – this sometimes correlates with large-scale property development projects.

3. Scrutinise the size

Unless there’s a physical showhome to give you a sense of space, it can be very hard to visualise the actual layout based on listed measurements. Bear in mind that the square meterage also includes things like hallways, foyers and closets. Use your furniture as a reference – compare bedroom dimensions to the size of the bed you want, for example.

4. Interrogate the details

When buying off the plan, you have to think big and small. And there are plenty of little details that are easy to overlook when considering the overall picture. Check that soundproofing is above the minimum requirements, if possible; find out about safety features, such as fire escape access; consider the property orientation – is the property maximising sunlight?

5. Check the contract, then check it again (and again)

This cannot be stressed enough – get a lawyer to review it, if you can. Look at the sunset clause, which stipulates when the build has to be finished by; whether it’s a turn-key agreement (you pay a deposit up-front, and the rest of the agreed payment once the development is completed) or progressive payments. The contract also gives you an idea of the wiggle room a developer is given to deviate from the plan.

If you’ve engaged with a reputable developer, chances are there’ll be no hidden surprises in the contract – but by understanding as much as possible, you set yourself up for a seamless journey into your dream home.