It’s a dilemma facing many with money sitting in the bank: do they leave it there, earning next to nothing in interest or take the plunge and invest their savings in property?
For people who’ve traditionally seen banks as the safe way of growing their nest egg, the thought of sinking cash into real estate can be daunting – but it doesn’t need to be that way, says Simon Taylor, a director and senior development manager at property developers Safari Group.
“I can understand why it would seem a bit overwhelming when you’re used to leaving your money in the bank but, right now, it’s not doing anything for you there. Property will give you a much better return over time, especially as low interest rates mean low mortgage rates,” he says.
One of New Zealand’s leading property development and construction companies, Safari Group specialises in mixed residential/hotel developments throughout the country. Even in the middle of a pandemic, the investor-focused group is already well on the way to delivering three big developments: LQ Kawarau River, Ramada Newmarket & Ramada Wellington – and now The Residences at Central Park in Ellerslie.
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A large percentage of apartment purchasers are investors, says Taylor: “While we have an amazing volume of repeat customers, we’re seeing record numbers of people approaching us who haven’t invested before – people who can see their money isn’t working for them in the bank, so want to take advantage of extremely cheap borrowing.
Buying off the plans means you don’t even need a 20 per cent deposit to get started, he says, as Safari Group only requires 10 per cent up front. The Residences at Central Park in Ellerslie can be secured for an even more palatable initial payment of just $20,000.
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“Next year, when we get close to financing requirements, we will come and tap you on the shoulder for the top-up to 10 per cent; 18 months later, when construction is completed, you’ll have saved up the additional 10 per cent for the 20 per cent bank deposit,” says Taylor.
“Doing it this way allows people to break up the 20 per cent deposit into bite-sized chunks over a period of time, while securing their unit of choice at today’s prices and without the frustration of a competitive auction.”
Low-maintenance apartments make excellent investment properties. However, some potential purchasers may be wary of buying off plans due to concerns that the development might not go ahead. That would mean their money will have been tied up in the deposit and they’ll have nothing to show for it or even worse, that the developer will ask for more money further down the track due to cost overruns.
“You’ve got to do your due diligence,” advises Taylor. “Look at the developer’s history, their values and how they operate. For example, our track record speaks for itself – as a company, we’ve been around for nearly 25 years and we have never ever gone back to a purchaser and said: ‘By the way, our costs have gone up and we need an extra dollar, let alone $50,000 or $100,000.’
“We always deliver and we deliver on time. We commit to a start date and construction starts on that day, no matter how many apartments remain to be sold. We are confident in our product and the value it represents, so starting on the back of our own equity gives our purchasers further confidence their building will get built and their valuable investment delivered on time.”
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Work will start on The Residences at Central Park in Ellerslie in June next year; Taylor is confident the apartments will be move-in ready in the first quarter of 2023.
One of the reasons he knows the whole process will run smoothly – and what makes Safari Group different to other developers – is that the company is responsible for every stage of the project. From acquiring the land and overseeing the planning, architecture and design, through to construction and then sales and marketing, every step is taken care of in-house by specialist teams.
“This allows us to have control every step of the way, making quick decisions as needed to the benefit of our customers. It gives us a huge competitive edge.”
There are also options to buy furniture and appliance packages: “At completion, your apartment can have everything from a couch and TV down to champagne glasses, cutlery and a toilet brush,” says Taylor. “We can provide this at a price you couldn’t match if you bought everything yourself because we bulk buy and pass on the discount.”
He’s expecting continued interest in The Residences at Central Park from new investors as well as seasoned ones – and first-time buyers looking for somewhere to live.
The location in Ellerslie’s Central Park precinct is a drawcard: “It’s a five-minute walk to the train station and you are at Britomart in 15 minutes, Newmarket in eight. Ellerslie village has its bars, cafes, convenience stores – everything you need – in less than 10 minutes walk. The motorway is right there. We fell in love with this spot because it is just so accessible.”
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The apartments are either studio or one- or two-bedrooms; there are also “dual key” options – a one-bedroom and a studio apartment together on one title, that allow you to live in one and rent out the other, rent out both or use the space as a two-bedroom home.
Interior design is by Outline Design of Newmarket and combines elegant style with practicality and offers two colour options. Features include a rooftop garden podium and a gym.
Taylor says anyone still feeling unsure about investing in property should bear in mind that they will own an asset that will not only increase in value, but by the time the apartments are ready to be occupied, rental rates are likely to have increased also.
“Our slogan is investing in your family’s future and that’s exactly what you’re doing when you invest in a Safari property.”
For more information visit theresidencesbysafari.co.nz
This content has been created in partnership with Safari Group.
