There are countless new residential developments in South Africa. However, that doesn't mean every buy is a great buy. You know that, as an investor, you must back every decision with statistics, data, and sound knowledge. So, if you're looking to buy off-plan property, these are essential tips to follow.
#1 Know The Local Area
South Africa has countless new residential developments going up. These brand-new developments are coming in response to immense growth, however, new developments can also present new risks. It's harder to estimate demand, for instance, especially when these developments mean the supply is quickly increasing. Looking at recent data, it is still worthwhile to invest, but you'll want to dig into historical data alongside other statistics that will help you determine value - like employment and economic growth, population trends, and so on.
#2 Find Developers You Trust
Whenever purchasing an off-plan property, you have to know your developer and you have to believe in the project. To prepare yourself, you should meet the developer ahead of time. Consider their previous developments so that you can determine if buying their property is a good fit.
The right developer will be more than happy to answer any questions you may have. They should help you understand the development, the process, their plan, and the purpose that is guiding their plan. This should help you see the value in the investment. Oftentimes, this is the most time-consuming part of the buying process, but it's critical.
#3 Check for Alignment With Your Goals
Even if an area is performing well (or is expected to), that doesn't mean it's the right match for you. As an investor, you should always keep your preferred investing style, your strategy, and your objectives in mind. For instance, you may be after high capital growth and strong rental yields. That should encourage you to investigate areas more strategically, like searching for a community with larger companies that are drawing in younger professionals willing to pay extra to be in a high-end, well-located property.
#4 Do Your Final Due Diligence
You simply cannot skip the details. When buying off-plan property, you need to get your legal representation in order to check out any contracts you will be signing, you need to look over all paperwork yourself, and you need to run the numbers more than once. Doing all of these things ensures that you are making a smart move.
After the funds have been transferred, the next step is waiting for the building phase. Your developer should be providing you with constant updates, including photos and even videos as the build progresses. The final stage is when the details come together. The company should be giving you information and advice on things such as mortgage, furniture, and the letting process.
#5 Proceed With Confidence
It is often a lack of confidence that leads to investors backing out of a deal. Backing out is not necessarily a bad thing, especially since lack of confidence means you either didn't find strong data to back up the investment or you did not look hard enough for it. In either case, it's worth taking the time to double and even triple-check your research. Buying off-plan property in South Africa is no easy feat, and to ensure you get the results you want, you have to do the legwork before you sign.
LYST property Consultants