Points to consider when buying off plan
Category Principal's Message
With the plethora of new housing developments springing up it has become increasingly common for home owners to buy off plan.
The advantages of buying off plan include being able to select a house design ideally suited to your family circumstance as well as being able to choose your own fittings. If you get in at the building stage you also will pay far less for your home compared to buying in an established complex.
With more buyers entering the market and a scarcity of existing housing stock in many areas, developers are moving to fill the gaps in the market as evidenced by the huge number of development properties listed on our website.
In recent years, more and more buyers have shown a preference for these development properties and this trend looks set to continue in 2015.
Financial
You can save a significant amount of money by choosing a development property. You avoid paying transfer duty on the property. Vat is included in the price and transaction costs are paid by the developer. Initially there is only a 10% deposit and the rest of the payment is only due on completion Furthermore, profits from off-plan properties can be free of capital gains tax if the property is sold before completion.
Maintenance
A newly built home will require little to no maintenance for the first few years. No nasty surprises with a burst geyser, faulty electrics or broken gutters. Your weekends will be spent enjoying your new home rather than doing DIY jobs around the house.
Customisation
With a development property you get to choose your property layout, size and finishes. You won’t need to live with someone else’s unfortunate décor choices.
Modernisation
New developments make provisions for the latest technology and enhancement. Things like wiring for your high speed internet connection, alarm systems, sound proofing and insulation are taken into account and added to your property.
Peace of Mind
You have a 5-year major structural defect warranty as well as a 1-year roof leak warranty from a building contractor registered with the National Home Builders Registration Council (NHBRC).
Safety and Security
A big selling point for most new developments is the security they offer. Controlled access, security guards and high walls allow residents to relax while their kids are free to play outside.
Upkeep
Other properties around you are new and well maintained which has a positive effect on the value of your property. In addition, developments will usually have rules regarding building works, gardens, pets and conduct that everyone needs to abide by so that disputes with neighbours are kept to minimum.
So it all sounds fantastic so far but as with anything in life you also need to be savvy and aware of potential issues that could affect your property purchase.
Prime Property is involved in the La Grande development on show every Sunday in Izinga. For more details please join us Sundays off Mahogany Drive. Follow on show boards from Herrwood Drive.
Author: Private Property
