For starters, there are fewer start-up costs than buying an ordinary property, because you won’t have to pay transfer duties. Secondly, your new home will be ultra-modern, with all the bells and whistles. Since the property is new, you will also have lower maintenance costs to worry about. Seeff unpacks some of the top benefits of buying property in new developments.
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There’s good news right from the outset. Most new developments are preapproved for purchase by the major banks, which means getting your home loan approved should be easy, provided that your finances are in order. And the news gets better — because there’s a delay between when you initially buy your new home or investment and when you actually take occupation of it, your asset is likely to have appreciated in value by the time you get the keys. Since new developments are often located in up-and-coming areas, the capital growth of your investment is likely to be significant over time.
Further good news is that transfer duty is not payable on new developments. Instead, you will pay VAT, which is included in the advertised price. When you buy a new development property, the transaction costs are for the developer’s account.
If you’re looking for a home or real estate investment that’s up to date with the latest décor trends and design motifs, buying off plan is undoubtedly the way to go.
Your new-development home will be finished off with the latest and greatest building materials and appliances – think state-of-the-art appliances, sophisticated finishings and ergonomically optimised property layouts. Buying into a new development means that you get a say in your property layout, size and finishes – an opportunity that you can never have immediately if you buy a property that has been tailored to someone else’s needs and tastes.
Another thing to remember is that owning a brand-new property means that – at least for the first few years – you get to avoid worrying about maintenance hassles. There should be no unforeseen surprises like burst geysers or broken gutters. Also, if you’re planning to rent your new development property out, a high-quality new unit will be extremely appealing to would-be tenants. New developments are likely to be fibre-ready and insulated, with much-desired features like alarm systems and plumbing for multiple devices already in place. If your new development home has been built to modern specifications, you should reap the benefits of lower electricity bills and running costs.
For those looking to invest in holiday accommodation to rent out, new developments often offer a perfect solution. For example, with a fantastic sea view over Saldanha Bay, these newly developed holiday apartments are being sold semi-furnished, with a double-door fridge, stove and microwave being part of the package.
In many ways, new developments are designed with the needs of contemporary South African life in mind. One such need is the need for safety, and new developments commonly boast features like controlled access, high walls and security guards. These often become idyllic environments in which children are free to play outside and be themselves.
Such developments – whether under the jurisdiction of a body corporate or a homeowners’ association – will have rules in place to ensure that life is harmonious and enjoyable for all.
Q: Should you invest in a new build?
A: New builds are an outstanding investment, for various reasons. You save money by not having to pay transfer duties and your asset often appreciates in value before you even move in. Investing in a new build is an affordable way to buy ultramodern real estate.
Q: What should you look for in a new development?
A: Things to look for in new developments include good location, amenities in the area and a property that will meet your and your family’s needs. It’s also important to do research into the property developer and ensure that they have a good track record.
Q: Which properties are the best to invest in?
A: New development complexes are a great investment because you can customise your property to meet your needs. The fact that they are new also means little to no maintenance for the first few years.
If you’re looking for a great new property development to invest in, you can trust the Seeff team to point you in the right direction. With our decades of experience in the South African real estate market, we are here to help. Contact us today.