Investing in off-plan property - the dos and don'ts

With the interest rate falling to a low 7% this year; the property market saw exponential growth with more individuals looking to get onto the property ladder. If you are considering purchasing off-plan, take a look at some of these do's and don'ts.  

Think through your finances

If you are purchasing a home for yourself or as an investment, find out what bond you are able to be pre-approved for and ensure that you are prepared for the additional costs when you take transfer of your property. In most cases, you will require a bond with the bank and a deposit. The good news is that an off-plan development is often more affordable than buying a built home and once your bond is secured, your monthly repayments only begin once the development is complete and you take ownership of the property.

Research the area

When purchasing off-plan, research the area in which you plan to buy in. Look at other developments and find out the capital appreciation within the area and the kind of return you can expect if you plan on renting out or selling your property in the future. As a sought-after, managed precinct, the Sibaya Coastal Precinct has experienced approximately 40% capital appreciation growth. Additionally, with it being within close proximity to popular holiday destinations and business hubs, there is a rental demand.

Don't be afraid to ask questions

If you are purchasing a home for the first time, there are other factors involved. Do your research around the different types of fees and costs involved and don't be afraid to ask your agent or conveyancer any questions for clarity on the matter. This could help you save ahead for the money while the development is being constructed.

Know the developer

While investing in an idea can seem risky at first, finding a trusted developer is key to ensure success in your venture. Before initiating your plans to purchase, ensure that you do your homework on the developer you are purchasing from to enable a secure investment. As a trusted developer within the KwaZulu-Natal area, Devmco Group boasts 100 years' worth of collective industry experience, have showcased through existing developments what they can deliver and have achieved over R1 billion in property sales.

On the North Coast of KwaZulu-Natal, Devmco Realty are trusted experts that understand client needs when it comes to off-plan developments. Purchase through a team that boast exceptional insights into the Sibaya Coastal Precinct and key developments within this node.