Recently there was an stuff article for this company: https://www.aera.nz/
Does anyone have thoughts or concerns about this. On the surface it seems like a good idea, but wouldn’t first time buyers normally enter the market with older homes rather than new builds? Are you more exposed to getting into negative equity with new builds and lower deposit?
As it applies to first time buyers it wouldn’t be appropriate for me, but I have relatives who it could potentially help.
@Spider. We didn’t know about this so thanks for letting our community know about it. I will share some of my experience here to help our community make their own minds up.
In Australia they suspiciously would call this a real estate marketing group (remg) as it follows a very similar pattern, but there is no proof that this is a remg.
Firstly, It seems, as you say, this could be very helpful to NZ first time buyers, housing builders and associated trades and suppliers and I applaud anyone trying to help first time buyers, especially from our community.
Secondly, I stress great caution to any buyer, before signing anything, you must carry out due-diligence, research real buyers experience and have a qualified lawyer (who understands legal property and conveyancing, and importantly new builds) it would also be very appropriate to investigate if there is any potential conflict of interest with any of the parties involved:
Thirdly, be alert for push or urgency (Example "If you don’t sign another buyer will buy it and you will miss out)
Some back ground to Australian remg:
In Australia at the time I was working there, it’s was not uncommon for the builder to say pay a marketing group a large amount of fees, commissions and rebates. (It was not uncommon to see fees paid of between A$20,000 to A$75,000 for a $550,000 new home. (Note this was between 2013-2015, and was focused on Kiwi and Australian interstate investors) and a rebate was given to the buyer as a means of being able to help affordability to make the purchase.
Most of the marketing groups that I came across were all about selling volume.
I understand from my Australian connections that approximately 95% of those
groups have close down for a variety of reasons.
A quick note on building a new home. It is not for the faint of heart. Many problems may and usually do arise in the construction process. I have come across so many clients who have said they will never build again. Lack of communication between all
parties is often the real problem.
Finally, I hope that they can do what they say they can because Kiwis first home buyers and the NZ construction industry need a lot of help. I look forward with interest to hearing their success stories.
Hi @chris-newkids, @Spider. This service could be a welcome change to first home buyers. I too would be telling any first home buyer to check out the fine print with a good lawyer and mortgage broker. I also agree with Chris on new builds.