3) Check if the ultimate shareholder lives in New Zealand.
It’s better if the development company owner lives in New Zealand.
If they don’t, it’s easier for them to pull their money out of a project when times get tough.
So head over to the NZ Companies Office, search for the company name, and check the address of the major shareholders.
If the company is owned by another company, keep clicking through until you get to the ultimate shareholder. If their address is not in NZ, that could raise a red flag.
To be fair, when I’m checking out a developer for Opes Partners investors, I run through more steps than this (23 steps, to be exact).
But if you are looking for an off-the-plan property on your own, these are three practical steps you can take to check out a company before investing.