September Newsletter
Category News
Developments - risky business or sound investments?
To some, the idea of buying a property that has not yet been constructed and which is only an artist's drawing when you commit to it, sounds unwise and quite daunting, but Upton Properties Principal Mark Upton says that there are numerous benefits to buying off-plan in a new development.
"One of the biggest pros is the financial saving that you will make as very often there is no transfer duty payable when buying in a new development. In addition, if you are buying in a sectional title development, you only need pay at the end of construction which means you have time to save. During this time there will be growth in the market and subsequently in your investment too," he says.
Research shows that new developments often offer superior growth, for example, townhouse schemes can offer up to 20% more return on investment than single homes in the same area.
"As you are buying a newly constructed property, you have the added benefit of being able to select the latest modern finishes, colour schemes and fittings to suit your tastes and vision. Because everything in your new home will be brand new, you can also rest in the knowledge that the property will not require upgrading or maintenance for some time," says Upton.
A definite positive is that new developments offer all the modern conveniences and enhanced features which older homes might not, including fibre and the latest security systems.
"However, as with everything in life, when buying in a development, buyers must do their research and choose wisely when it comes to selecting a specific development - consider the location and also make sure that you choose a reputable developer," says Upton.
When selecting the development make sure that you fully understand the floor plan and the finishes to be provided. Also ask questions if there is anything you are unsure of and make sure you understand the process that lies ahead and the timelines.
"Buyers must also be cognisant of the fact that if there is a sales threshold on the development and it is not met, that the scheme may not go ahead and they may have to start back at square one a couple of months down the line," he said.
"Other issues to be prepared for are possible delays in occupation. Having a bit of time built into your expectations to cover for supplier delays or bad weather is wise. And even once you have moved in and occupied your home, expect some snags that will need to be attended to by the developer," says Upton.
"We are happy to assist and advise you with regards to some of the latest developments on the market in the Southern Suburbs of Cape Town, so please feel free to contact us on 021 683 0008 to find out more."
Upton Properties specialises in marketing developments of both upmarket apartments and security estates. See some of our latest developments here.
Author: Upton Properties
