Buying an off-plan property? Read this first
Category Buying
In real estate, the early bird gets the worm. Some of the best houses are snapped up before they're listed. Even before they're built. Off-plan properties are rising in popularity amongst buyers and investors. This involves entering into a sales agreement based on the developer's blueprints. Patrick Davison, Manager at Century 21 Upper Highway, unpacks the ins and outs of the process.
Benefits of buying off plan
Provided you don't need immediate occupation of the property, buying off plan boasts significant benefits, says Davison.
"Buying off plan allows you to purchase at today's price but only start paying in the future when the property is built and is transferred. During that period, you'll also see a capital appreciation on your investment and, of course, there are no transfer duties payable."
How off-plan purchasing works
Buying off plan may seem daunting for first-time buyers. But, Davison says it's much simpler than you'd expect.
"Off-plan developments usually offer a variety of plans and units, so it's important to select the unit that best suits your needs. Once you have made the decision, you'll be required to select your finishes and also any optional extras that you wish.
"Most developers will require an initial deposit and thereafter a specified period in which to secure the balance of the purchase price by means of a home loan or cash payment."
Davison encourages buyers to consider the first phase of properties being offered in a development.
"Buying in the early phases of any development is advisable as pricing usually increases in later phases. So from an investment point of view, you'll see a greater appreciation of your asset."
Tips for buying off plan
Like any investment, buying off plan comes with risks. However, planning carefully can help you make a good choice.
"Do your own investigation into the development and the developer", says Davison. "Make sure you are confident of the track record of the developer and the viability of the scheme."
"You should also read the sales agreement and all other documentation thoroughly. In this way, you'll be completely aware of the conditions contained therein and the product you are purchasing.
"Partnering with an experienced site sales agent is also important. They'll guide you through the entire process and will assist with bond finance. If you decide to buy in phase two, they can also add you to a preferential list so you're first in line."
Buying off plan in Kloof
At present, Century 21 Upper Highway is offering the chance to buy off plan in Horizon Views. This is a new development that holds the promise of contemporary living - all at an affordable price. With 360° vistas stretching from the ocean to tranquil valley views, Horizon Views has a peaceful country vibe you'll love to be a part of. Davison believes it has incredible potential for those looking to buy in Kloof.
"Horizon Views is a fantastic product at an incredible price point. This 81-unit development will offer a choice of two and three-bedroom freestanding units. A lot of thought has gone into the architecture and design of the units and complex in general.
Another highlight of this project is that the finishes on offer would normally be associated with units in a higher price category."
Beyond this, the estate offers wonderful rolling green areas, hiking trails, and a private dam for the entire family to enjoy. Communal facilities like a swimming pool and pavilion will ensure the development has a close-knit community spirit.
Buy now, avoid disappointment
Davison says the response for Horizon Views has been incredible. 15 units were reserved in the first week, with a remaining 12 units available in phase one. A major draw is the affordability of the first phase. Horizon Views is well priced from R788 000, ensuring you'll see an excellent return on investment.
Phase two of the scheme will launch in approximately two months' time and designs will be the same as phase one. However, Davison urges all buyers to take advantage of the first phase or miss out on a great real estate opportunity.
Century 21 Upper Highway invites you to view the upcoming Horizon Estate development. We also have a number of other properties for sale and to let. Email or call us to set up an appointment.
Author: Century 21 South Africa
