Weekend Argus (Saturday Edition)
Make sure you know what you’ll get when buying in advance
PLACING your trust in a developer to deliver the home of your dreams, when all you’ve seen are artists’ impressions, requires a leap of faith.
However, there are many benefits to buying off-plan, particularly from a developer with an established track record, says Clifford Oosthuizen of Westbrook Property Developments.
Buyers are urged to research the developer as their track record will give you an indication of the quality of their work, the reliability of their contractors, and the returns they deliver to investors and buyers.
Oosthuizen also advises:
¡ Ask the developer for proof of membership with organisations, including the National Home Builders Registration Council, which ensures the registered builder will guarantee his work. ¡ Ask to be kept updated about changes and/or visit the site often as the property or development might end up looking slightly different to the artists’ impression. Rawson Developers’ Bill Rawson suggests:
¡ Make sure you understand exactly what the offering is so you are not disappointed. Consult your legal adviser if you don’t understand the agreement or have doubts. ¡ Risks can be substantially mitigated by establishing who the developer and architects are, the attorneys attending to the legal work, and what other projects have been done by the developer, says Pam Golding Properties’ Laurie Wener.
“Establish which construction company has been appointed or is being considered. Find out if plans are approved and when they are likely to be passed. Familiarise yourself with the schedule of fixtures and fittings provided and choices. Read the documentation carefully and ask questions.”
She says there is inevitably a period of time between completion of a building and registration of transfer into the buyers’ name, so she advises buyers to ensure occupational rental equates to a bank interest rate on the purchase price of the property.
“Doing this will ensure that during this hiatus you will still earn interest on your invested capital and/or save mortgage loan repayments.”
Re/Max agent Christo Slabbert says: “Buyers must ensure they understand the plan they sign for and they must understand what the price includes and excludes.”