Buying a new home?

Buying off the plans may look good on face value but it’s a risky financial move, says author and former business journalist Maria Slade.

New Zealand homes are changing from being stand-alone houses to units and apartments where neighbours are ‘‘joined at the hip’’, Slade says.

In her recently published book, Buyer Beware A New Zealand Home Buyer’s Guide, Slade offers tips and advice for those wanting a slice of the Kiwi dream.

The Auckland author says it is particularly tough for those venturing into the market for the first time.

Buyers are attracted to buying off a plan because it seems like a good idea.

‘‘The pictures in the glossy brochures, they are just that. They are no more than plans.’’

Slade says the contracts are usually heavily weighted in favour of the developer and investors should have a good lawyer helping them out.

One of the most important items to check is the sunset clause, she says.

It allows the buyer to cancel and have their deposit returned if the developer does not make an agreed amount of progress in a specified time frame.

Most people are unaware that developers also reserve the right to alter the project plans by up to five per cent.

Slade says there have also been instances where developers have asked buyers to pay extra one year after they have paid a deposit because costs have gone up.

Buyer Beware A New Zealand Home Buyer’s Guide is $30 and is available at penguin.co.nz or Paper Plus, Whitcoulls and The Warehouse.