Buying into a development
Many first time buyers will be considering homes in developments and they need to ask the developers some probing questions before making a commitment.
According to the latest FNB Barometer South African housing market trends will remain heavily dependent on developments in the broader economy.
The survey also showed that there are more first time buyers in the market now than in 2018, and it follows that many of them will be looking at buying homes in developments.
Off-plan bargains
You can find some really good deals when buying a home off-plan in a future development. This is because most developers of new projects need to sell a large percentage of the proposed homes to qualify for development finance from the banks.
Read: Tips for buying and renovating older homes
To achieve sufficient sales the initial launch prices are usually rock bottom in the first few months of sales, so buyers who get in early stand to get real value for their money.
Higher risk
Understandably, buying a home that hasn’t yet been built involves more risk than buying an existing home. At the time of the launch of a new development, no homes have yet been built and many sales agents work out of container offices on site. Buyers often have difficulty visualising what the final product will look like. Marketing brochures and architects’ impressions can be misleading, and can easily give a false impression of the quality of the homes to be built in a new development, as well as planned amenities, landscaping and, perhaps most important, financial viability.
Questions to ask
Developers who have produced successful projects over the years, with quality workmanship and attention to design details will probably continue to perform well. To safeguard your investment you need to check the track record, financial status and credibility of the developer and, if possible, visit previously completed projects.
• Information supplied by Private Property.
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