Buying off-the-plan requires you to enter into a contract before seeing the finished product. It is an attractive option for those wanting to enter Niseko’s property market, but just what are the benefits?
BUYING off the plan can be considered risky for such a high-involvement purchase, but it’s also a buying strategy that can reap financial reward. Powderlife caught up with a few local agents and asked them to explain the benefits of off-the-plan purchases.
Ruskin McLennan of Niseko Property says, “Buying off the plan is simple: you are the first owner of the property; you may be able to influence the design and make changes with the architect and developer.And you only need to pay a deposit to get yourself into the market, the balance is not due until completion, the risk is mostly with the developer.”
in comparison to other international ski resorts. The market in the Niseko area is entering a new growth phase and is likely to see a rise in off-the-plan purchases due to the new major developments in the area recently coming onto the market.
This includes: Seseragi Residences – a selection of 2 x 4 bedroom houses close to the village and with views of Mount Yotei; The Rocks Edge and The Rocks Strata; Shiki Niseko in the middle village; Akazora, which consists of 26 condominiums; Niseko Riverside – 8 boutique apartments coming onto the market this winter; The Escarpment in the lower village; and the anticipated Capella in Annupuri. All of these properties offer something different for the buyer. This variety of developments will allow investors to get an off-the-plan opportunity that suits them.
Julian Bailey from Hokkaido Tracks Resort Development has a lot of experience with off-the-plan and explains that, “Properties can be designed and developed to innovate and improve on those previously developed, delivering better properties at better value.” Craig Meikle of Meikle & Associates takes into account the inevitable weakening of the yen, “Works are due for completion in two years time. This gives potential investors the opportunity to lock in an apartment with minimal deposit and wait for the yen to weaken over the next two years, which surely it will.”
As with any property purchase there are things to be mindful of when purchasing, particularly when you haven’t seen the finished product. Here are some things to consider:
– FIRSTLY you have to believe that what you see on the plan is what you’re going to get. How big are the rooms going to be? What level of quality are the furnishings and fixtures? Buy from a reputable developer that has other finished work to show you.
– ESTABLISH whether the asking price is fair and enquire about the price of property in the area – is it rising? Question rental guarantees. With all of the options available in Niseko, shop around and make a purchase that suits you.