Buying offplan

[Dolby]

If I choose a place that'll only be ready in 1 year and put a deposit to secure - do I miss price increases?

I think it almost certain prices will increase in the next year.

 

[gifs]

You will pay whatever the amount in the offer to purchase is.

 

[xrapidx]

Make sure there's a clause that says they pay you occupational rent if its not complete by the due date

 

[undesign]

I think it almost certain prices will increase in the next year.

I'm not sure if prices will increase. Building cost is coming down - it has to if you compare the price/square meter of existing new houses.

And more importantly the housing market is severely dampened by a lack of credit, with banks routinely demanding 20% deposits. Even with interest rates coming down, most people just can't afford a sizable deposit.

my 2 cents

 

[Dolby]

Is that 20% deposit addition to the secuirty deposit?

So this place is R550,000.00 (off plan - available next year) with a R20,000.00 security deposit - bringing price to R530,000.00. The bank want an additional R106,000.00 as well?

So effectivly I'm bonding R424,000.0 and need to get the remainder in cash?

 

[xrapidx]

What do the bank want the R106kl for? As a deposit?

If so, it sounds about right, the R106k being the cash?

If its a new property, you don't pay transfer fee's... there might be a few extra R1000's for various other fee's.

 

[Dolby]

Ah man that sucks

 

[undesign]

@dolby - I'm not saying the bank will ask for a 20% deposit, but in the golden hey days banks typically financed 100% (even 108% in certain circumstances).

Technically you can still get 100% finance, but it is much more difficult these days. Affordibility is not the only issue - banks are systemically afraid of risk atm. I would guess on average banks now finance between 80 - 85% of purchase price.

The lower the purchase the better your chances of getting a higher %, so you might get sorted.

btw what does the deed of sale say? there must be a suspensive condition to obtain finance.

 

[Dolby]

I dunno - still very far from making the choice

I'm just exploring at this point.