What Value Does Opes Offer Developers?

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Laine Moger

Journalist and Property Educator for 6 Years
Introduction

Developers need to pre-sell a high proportion of their development, around 75 to 100%, before the banks will approve finance and construction starts.

This means selling off-the-plans before these would-be homes exist in bricks and mortar. To get these pre-sales, a developer can either use a standard real estate agency or they can use a specialist property investment company like Opes Partners.

In this article you’ll learn what Opes Partners offers developers in terms of getting fast, unconditional contracts and finding the right buyers to invest in those properties.

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Opes' Value

How Does Opes Partners Differ From Other Agencies?

Right Properties

Developers have a vested interest in where they build properties. Not only will they need to find buyers, but they often keep some of the properties for their own investment once built. There’s also a significant amount of money at risk.

Opes conducts economic research to identify the best areas to build for investors. So they know where and what type of properties to build.

We analyse every town in the country with more than 10,000 people living in it - all 44 of them - and fashion these timely insights into a 6-monthly report.

This report includes analysis of what properties are being bought in different price ranges, and what the rental demand is for each type of property.

It also provides data to developers about the types of properties being sold and which properties are forecast to be developed in the next 12 months.

All this combined data puts developers in the best informed position to build the right properties in the right place.

For instance, if there are a significant number of 2-bedroom townhouses being built in Christchurch over the next 6 months, a developer might decide against building more of the same due to too much supply for demand expected in that period. This is turn means securing buyers, providing properties for their long-term investment strategies.

Put simply, Opes helps developers build properties people want.

This half-yearly data is provided to developers free of cost, so we can secure the best investment stock possible for our investors. And, frankly, so developers are willing to meet us and have a conversation.

Right People

Increasingly, developers care about more than just building and selling properties – they also care about the long-term quality of the development and the future community that will make it their home.

Developers want the future community to make these properties their home, and in turn the premises will be well-maintained. Developers want to be able to showcase the project as a success story, while being proud of what they’ve created every time they drive past.

For this reason, Opes helps to build communities within each development by filling properties with a variety of people.

This happens through the three brands we use to find a diverse mix of buyers:

  • Opes Partners (works with property investors)
  • Opes First Home (only works with first home buyers and KiwiBuild)
  • Opes Real Estate (only works with existing owner-occupiers, like a regular real estate agent)
  • It provides confidence that potential buyers are looking at your projects
  • You know what the feedback is on your development

This three-brand setup means we can attract a range of buyers to a specific development, which helps create a diverse community.

We also own Venture Management, a property management company, which finds tenants for most of the developments we work on.

Opes doesn’t want to just find buyers for each new-build project, we also want to make sure the properties are maintained and sustainable.

Venture helps us to stay on top of maintenance and ensures the most suitable tenants are sought for each development, giving us a long-term stake.

Right Process

Opes provides a paper-free process for finding buyers for each project.

As soon as an investor or first-home buyer says they want to put a property under contract, the developer will get an email notification. This gives the indication of an up-and-coming contract on its way, so you can keep an eye out.

Once the buyer has signed the contract online, it is then sent through to you, the developer, to sign electronically too.

A completely electronic process enables the whole affair to move more quickly, rather than signing and sending paper contracts between offices, which is still the case for some.

Opes also has a Development Manager, who will track the number of times our adviser team has presented each property per week, and will note the feedback given from investors and first-home buyers.

This has two benefits for developers:

This allows you to make immediate changes if needed, and it also lets you know what to note down and keep doing right for the next development - and what to change in the future.

Right Pace

Altogether, the way Opes Partners targets investors results in quick, unconditional contracts.

Developers need properties sold - fast. It’s not enough to only get the contract signed; the value resides in getting the contract unconditional.

Opes achieves this by getting investors into the position to make a purchase. We work with them to create a property investment plan, and then we match them with properties that will fit that plan.

This way, buyers will only ever be looking at properties they can logistically and financially afford, and therefore drop-offs are minimised.

Opes has an inhouse mortgage brokerage - Catalyst Financial - which means we are able to ensure our investors and first-home buyers are able to secure finance.

Investors benefit from this process as well.

Because Opes deals specifically in off-the-plan new-builds, we can secure good quality deals from developers with a proven track record.

And by providing this service for the developer we are able to secure good quality developments for our investors.

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Laine Moger

Laine Moger has been a journalist and reporter for the last 6 years. She previously worked for Stuff, The North Shore Times and Radio NZ. She has a Bachelor of Communications (Honours) from Massey University and a Diploma of Journalism from the London School of Journalism.