Why consider a property in a new development
To secure a property
in a new development, property developers will generally only ask for a small deposit. This could be as little as between R5,000 and R10,000.
Banks are also usually quite willing to give 100% bonds on this type of property.
Another advantage of buying a property in a new development is that a lot of the costs you’d have to cough up for an existing property are included in the asking price.
How to find a property in a new development
The best way to uncover new developments is to search online and have a look when you’re out and about.
It might mean you have to wait a year or two until the property is built or completed, but the wait may be worth it. In the meantime you can put money aside for your new investment.
The downsides of buying property in a new development
You may not be on the only person who has bought a property in the complex to rent out. This may mean it will take a bit longer to find a suitable tenant.
The main thing here is to buy a property that will appeal to the mass of tenants.
Ideally you want to buy in a development where there’s a strong uptake of properties.
The advantages of buying property in a new development
You won’t have a lot of upkeep on your new property, so this means your costs will be low for several years.
You should find it easier to secure a bond for the property and you save money on fees like transfer duty.
So there you have it. Why you should have a look at new developments if you want to start investing in property.
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As a FSP Invest
reader, you’re probably familiar with SA’ most successful penny share investor, Francois Joubert. Over the past few years, he’s made quite a name for himself as the ‘go to man’ in the penny share arena.
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