Tips for buying an off-plan or an existing property
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Loading... - shalom marita
- 29 Mar 2023
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Property investment is a long-term commitment. Don't expect huge returns in the first one to two years.
This is according to Clint Wahl, Local Real Estate agent in Ballito, who says that from year three is when the returns start to make sense. "You should also benefit from capital appreciation moving into year three of ownership. "Rather buy a few lower priced properties than a higher priced one to spread your risk."
If choosing to buy an off-plan property investment Celia Tabb from the Midlands Local Real Estate office suggests that buyers ask the following questions:
1. How long will the development take to complete?
2. If I were to sell straight after the completion of my unit – will I be competitive in the market against a development unit that attracts No Transfer Duty?
3. If I live in a unit in a still ongoing development what security options and insurance can the Developer give until such time as the Development is fully complete?
4. Has the Body Corporate been formed with legislated Rules or is it still to be formed?
5. Have the rates been finalised yet?”
6. As this is still a new development what guarantees will be given regarding a snag list if there are any problems and what will be the procedure to ensure it will get rectified?
An article published on Property24 on June 7, 2021, features Chris Cilliers, CEO of Lew Geffen Sotheby’s International Realty in the Winelands, who explains that if you buy from a developer the Consumer Protection Act (CPA) will safeguard you, whereas if you buy from a private seller the CPA doesn’t apply.
Under the CPA, a purchaser has the right to:
- Within three months, instruct the builder to rectify non-compliance or deviation from the terms, plans and specifications of your mutually binding agreement;
- Within 12 months, instruct the builder to repair roof leaks attributable to workmanship, design or materials; and/or
- Within five years, instruct the builder to rectify major structural defects caused by non-compliance with technical building standards.
