With regard to the purchase of a property, everyone has two council centimes to add. Most suitable that even now, while many people had to tighten their belts, the real estate market is about to turn around and that the purchase now seems to be a good idea. But does the question always remain – than buying?
The property is not a small change, although it can be a lucrative market. The options where and what to buy are endless and you do not want to make the wrong decision. This one tells you that it is safer to buy goods belonging before, while another insists that new real estate developments are the way forward.
There is certainly no shortage of new real estate developments in South Africa and there is no good or bad answer to this choice. As a buyer, you should consider your own needs and weigh the advantages and disadvantages of your choice.
Advantages and disadvantages
One of the most important factors to take into account is whether you consider this as an investment property. The new off-plan real estate developments offer great investment opportunities, especially if you buy before construction starts or early during the construction phase. Prices are often initially defined below the market value to attract investment. The early purchase also means that you have the choice of the best properties for sale, such as the penthouse or property with the best view.
If you buy goods during the final phase of construction, it significantly decreases investment opportunities for the property. In addition, the best properties have already been taken.
Purchase out-of-level properties as well as early means that you may need to wait long before your property is delivered to you. Delays are not uncommon in the construction industry, which could extend the period you need to expect even more. It also means that you can not see the finished product before the construction is finally completed. On top of that, as the region is still under development, you do not know how it could change during and after construction.
These potential problems can be warned by buying only developers of respected goods and ensuring that the contract includes a penalty in case of delay. You can also ask your lawyer to review the local city plan to measure the impact of future developments on the property you are interested in.
Another aspect that many buyers fear is that the manufacturer could go bankrupt and that the goods they possibly take possession can not live up to the norm announced before the purchase. This should not be a problem when you purchase developers and respected developers, but as a security measure, you can ensure that a bank guarantee and insurance are in order.
After all this is said and made, new real estate developments in South Africa have some advantages over the previously owned properties. As you buy directly from the proponent, the purchase price does not include the financing of the agent fees or paying a transfer fee. The purchase price is also defined by industry professionals, so you will not find large fluctuations between similar development values, as you may want in prices defined by private vendors. Price differences will be influenced by location, quality and functionality such as view.
Another considerable advantage is that new buildings usually wear a guarantee to cover the main failures in the structure, while the responsibility for any damage to a previously belonging property will be only with you. You are also the first person to occupy this new development, so you can customize it in any way you wanted, without having to move money to remove installations or changes made by previous owners.