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Frequently Asked QuestionsWe have collected a list of the questions which we are most frequently asked below.Who is Premark Property Ltd?Premark Property Ltd is a property investment company registered in New Zealand.What does Premark Property do?We source off-plan and newly built property with genuine discounts on true market valuations and/or other benefits for property investors. We gain discounts by negotiating with developers. Developers are happy to negotiate because of the collective buying power of our clients and also the relationship that Premark has with them.What types of properties does Premark Property source?Premark's primary focus is on off-plan and newly built developments in New Zealand and within the South Pacific.What does 'off plan' mean?Off plan property is a term used to describe buying a property before it is built. By buying property 'off-plan', you are purchasing a property based on the drawings, floor plans, impressions and proposals submitted by the developer. Often, building will not have started.Types of Off-Plan property include:
The benefit of using this form of buying is that developers are often keen to get their first property sold and will therefore offer a discount for buying off plan. It is normal to pay a deposit to the developer and complete when the property is fully built. This means that the investor pays a deposit but sees the capital growth on the whole of the value of the property. There are also the advantages of no mortgage to pay, no furniture to buy and no tenants to worry about during that time. Who buys off-plan property?There is no standard answer to this. You may be a first time buyer or a property investor with many other investments. You may buy because you see an opportunity to make money, because you would like a holiday home in an exotic destination or you may simply wish to buy a home at a discounted price.How can I be notified of property investment opportunities?When you subscribe to our investment opportunity alert service, you will be given advance notice of opportunities. When new developments become available, we'll send you an email. You will be able to go to our site and check out the information e-book that we compile for each development.What do I do if I see a property I like?Once you see an investment opportunity that suits you, you should reserve the property. This means that the property will be held for a fixed length of time for you. Properties are reserved for you as soon as the reservation fee has been received by us; credit card, Paypal or wired direct bank transfer are our preferred methods of payment as they are quick, secure and allow us to secure the property on your behalf in the shortest time.Can I negotiate on the purchase price and contract conditions?Premark Property Ltd. and it's lawyers negotiate the best possible terms with the developer many months before the development is launched. The purchase price and contract conditions are set.How do you get properties with discounts?Because we deal with multiple units in each development, we can negotiate good discounts and pass them on to you.How do I know the discounts shown are real?We will always provide the developer's selling price along with the discounted price.What is the reservation fee?When you want to officially reserve a property we ask for a reservation fee. Typically this is $2000NZD but it can vary. The reservation fee secures you the option to go ahead with the purchase of the property any time before the end of the reservation time period. Once a property is reserved, no-one else can reserve or purchase it in the reservation period. Because in effect the property is being held for you and not available to others, reservation fees are not refundable. Once a contract is signed, the reservation fee is credited against the deposit.What is the arrangement fee?The arrangement fee is the fee charged by us for bringing together property investors and quality developers offering genuine discounts. It covers all aspects of sourcing properties including compiling essential information about the development, the area it is in and the developer's track record, We visit the development, work to gather all the possible information you may need in your due diligence, and help you through the purchasing process. We earn an arrangement fee, 2% of the sale price of the property, each time you buy a property from us. This fee is non-refundable and is paid when the contract is signed by both parties (unconditional date).When are the contracts signed?Once you have reserved your property and made the decision to go ahead with the purchase of the property, a contract is entered into with the developer. This is generally within 28 days of the initial reservation.How much is normally required for a deposit?The deposit is usually 10% of the purchase price. Deposits for the property you are buying are always paid directly to the solicitor and held in trust.What Capital Growth can I expect?Capital growth will vary according to the local economy. In New Zealand, property prices have increased by an average of over 9% per annum over the last 15 years.What are the costs associated with buying an investment property?Costs associated with the buying of the property can include:
Can I have the property independently valued?Yes, in fact a professional independent valuation is often an essential part of obtaining a mortgage. It will also give you assurance that your investment figures stack up.How can I be sure that I am making a good investment?The long term performance of property as an investment vehicle makes it one of, if not the, best investment in terms of low risk and high reward. Historically, New Zealand property prices have risen on an average of over 9% a year for the last 15 years.How do I Finance a Property Purchase?Some form of cash deposit will be required when you purchase a property and there are also costs associated with buying a property including legal fees. As most will not have the cash to pay for the whole of the property there are various mortgage alternatives for financing the balance including:
How Much Can I Borrow?The amount you can borrow depends on many factors - rental income, personal income, your employment situation, your age and your other financial commitments. Typically a lender will lend up to 95% of the purchase price to a resident or citizen of New Zealand, and between 50 and 85% to non-residents.Will my property be freehold?Yes, all properties that we deal with are freehold properties.What do I do if I have a problem?We are committed to excellence in our service and are available to help you. Contact details are on our website.Is it true that there is no stamp duty in New Zealand?Yes.Are there laws governing building in New Zealand?In New Zealand, the building of houses and other buildings is controlled by the Building Act 2004. It applies to the construction of new buildings as well as the alteration and demolition of existing buildings.« Back |
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