Buying an apartment off-plan? Good idea?

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Sly21C

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So I'm seriously considering buying my very first property off-plan. There's a developer that is currently selling units off-plan. From their website http://www.genesisprojects.com/, there are a number of developments going on.

How risky is it to buy off-plan? I've read a few article so far, such as this:
http://www.privateproperty.co.za/ne...g-off-plan-can-have-huge-benefits-.htm?id=174
and this:
http://www.sahometraders.co.za/news/news_article.asp?nid=54
So I know the basics of what to look out for.

Would you buy off-plan?

A few things that attract me to buying off-plan is the thought of moving in to a brand new apartment with new household items that will last for a few years before they need maintenance. I also like the idea of not paying my bond monthly installment until I move in. This means the initial price of the property, under normal market conditions, will increase even before I move in. If, after 2 years, I work for another company at a far away location. Then I can simply rent out the property or even sell it at a reasonable profit.

What do you guys think?
 
Bad news. Don't EVER buy without seeing the end-product. A demo unit in the developers office is not a finish product. I've had family buy off plan and get robbed wholesale.

Good luck!
 
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I bought my place off plan from Genesis, definitely saved us alot of cash. When we were looking we were positioned at about a R100,000 saving from a house already built the same size.

We have also had the place for about two years now and the value has increased greatly.

You need to watch the developer every step though. We made sure we visited the site every week. I had to have fights with the developer about putting plastic sheeting before he laid the floor. I had to fight again about plastic sheeting on the roof. We fought about everything but I got my way.

Other things I have learned - Body Corporates can be very taxing - If there is anything you want to add to your place like a lapa or paving maybe a hollywood garage - do it while its being built before the trustees can make decisions on your behalf.

Also If you are smart make sure you get on the board of trustees...

I'd do it all again in a heartbeat!
 
blunomore said:
such as ?
Click to expand...

Oh, it's nothing.
cheshire-cat-grin.jpg
 
I bought off plan. Busy being built at the moment. Saved myself a fortune in legal fees, however as other stated...u have to watch them every step of the way. Your place will never be built to original specs. My porch was changed from 1.5m to 1.1m.....was so pissed.

However its the legal fees you always negotiate. My legal fees were sitting at 25k, now its down to 12.5k in total.
 
I once bought off-plan with RBA developers, over 6-12 mths down the line they still hadn't started developing even though at the time of purchase they were saying construction would commence within 3-6 mths and moving in 6-12mths later. I cancelled the deal right there and then with the bank. About a year later RBA called me saying they will no longer developing after all and pointed me to another site of theirs. I told them I cancelled and bought another property and I was already in that property.
 
As long as it's from a reputable developer there should be no issues.

I have done it twice already. The first time they were being sold by Pam Golding so I knew I was safe.

And the second time the development (well known in the Cape) had just started construction. It's the best time to buy in my opinion. If you buying brand new there is usually no transfer fees to pay and you get to chose your own finishes ect :)
 
Buying off-plan, even from a reputable developer like Group 5, ensured some headaches... stuff like not building according to what was promised etc.

My cousin's father in law is a building inspector, so they made regular visits to the site when he bought. They had to get them to break down the wall of the main open plan room about 4 times until they actually got it RIGHT. And I don't mean "this brick is kinda skew, redo it" type ****, more like "this wall should be over HERE not THERE" and "This window is at the bottom? it should be at the top because this is where the kitchen counters go you morons!"

So do yourself a favor and visit regularly to check up/get a friend who knows **** to come with etc.
 
The main advantage of buying off plan is that there should be no transfer duties, since you are the first owner. You would pay VAT, though. It is always nice to be able to see a show unit at least before embarking on your biggest financial decision as yet.

Do your homework before committing!
 
Point to remember, your first residential property does not incur a transfer fee for the first R600k. I saved tons when i bought my flat because of this. Not sure of the scope of this but i assume nationwide.
 
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Thanks for the comments guys! :)

I'm in the civil engineering industry so I know how to deal with contractors with regards to following the NHBRC and other building specs.
 
I bought my house of plan. I would NOT make that mistake again. Cracks started to appear in the walls, damb seeped through the walls, the list goes on.

But as they say, hindsight's got 20/20 vision :)
 
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