Buying off-plan property in Cape Town
Category Property Advice
Off-plan properties are generating a lot of interest when it comes to property buying. Buyers take some of the most sought-after properties before they even hit the market, often well before they are built. With the number of off-plan properties rising, this trend will likely continue.
What is off-plan property?
So, what exactly is an off-plan property? It's essentially a property that you buy when it's still in the development phase. You won't have the opportunity to walk through the finished product; instead, you rely on building plans, blueprints, and the developer's reputation.
While not the most traditional choice, investing in off-plan properties offers several attractive benefits, such as cost savings and the opportunity to customise the property to your liking and more.
Why opt for off-plan in Cape Town?
Here are some reasons why buying an off-plan property would be a fantastic option.
- Early investment opportunity
Buying a home before it's built is a great way to enter the property market early. You can get a home in a great location or with a nice view before the building is done, as it could lead to big gains when the property is finished and its market value goes up.
For instance, you could buy a house in a famous part of Cape Town, like Newlands or Claremont, for R1,5 million before it is built. Similar properties in the location will sell for R2 million or more when the building is completed.
- Cost saving
Newly built properties often need transfer duty fees. Moreover, off-plan properties are commonly offered at lower prices than finished ones. Getting in early allows you to secure more savings.
For instance, If you buy a house for R1 million before it's constructed, and similar homes in the same area sell for R1,2 million, you've saved R200,000.
- Options to personalise
When you invest in an off-plan property, you typically have the flexibility to customise the interior to suit your preferences, which allows you to make the property feel like your own by adjusting it to your liking.
In some cases, developers can even permit alterations to the floor plan, such as adding or removing walls, and offer options for choosing finishes like flooring, cabinets, and more.
- Legal protection
You are legally protected under the Consumer Protection Act if things don't go according to plan during the construction of your property. It provides rights and options to address any issues, like delays or deviations from the agreed-upon plan, ensuring your protection as a consumer.
- Opportunity to lease your property
You can rent out the property if you don't intend to live there, generating a return on your investment. Off-plan properties can be a valuable source of passive income, especially if they are located in a high-demand area.
Factors to consider when buying:
- Location: You can check out the area where the construction is going to happen. Think about things like how close it is to services and transport and how big it could grow in the future. Cape Town has many different neighbourhoods, so choose one that fits your way of life.
- Developer reputation: Find out about their past projects, if you can visit finished buildings, and see if there have been any complaints or legal problems. Developers who have been around for a while are likely to keep their promises.
- Building timeline: Know when the project is expected to be done and be ready for delays that might happen because of things you can't control, like weather or possibly strikes.
- Resale potential: Even if you don't intend to live there, its future resale value is worth considering. A property with broad appeal to potential buyers can be a solid investment.
- Check the property's amenities: Finally, look at all the community and amenity options in the property. These can have a major effect on your living standard and your home's value.
Looking for new properties in Cape Town's top neighbourhoods? You can browse through new developments listings or get in touch with our property practitioners for more information.
Author: Upton
