STEPS TO PURCHASING A PROPERTY OFF-PLAN

SPOILER ALERT… you only start paying the bond once your apartment is complete. By buying off-plan, you’re not just securing a property; you’re making a strategic investment in your future. With the opportunity to save money, customise your space, and benefit from significant capital growth, off-plan buying is an attractive option for homebuyers and investors.

Let’s get into the steps to buying off-plan and why it might be your best decision yet.

1. Determine Your Budget

Assess your finances and get a pre-approval from a bond originator to understand how much you can afford. Ooba offers a free bond originator service and deals with all the major banks to find you the most suitable financing option.

2. Research Locations and Apartment Types

Investigate different areas and apartment types. Examine floor plans, renders, building amenities and the projected capital gain of the property – our Sales Team can help you with this.

3. Sign the Sale Agreement

Having made an informed choice, review the Offer to Purchase (OTP) document. Once satisfied, sign the contract to secure your new home.

4. Agreement Submitted to Conveyancing Attorneys

The signed paperwork is processed by our conveyancing attorneys – moving the purchase forward.

5. Pay the Bond Deposit

Pay the required bond deposit (if required) to the conveyancing attorneys within the specified timeframe. This will be held in a trust account, earning interest for your benefit which will be paid to you upon the transfer of your apartment.

6. Secure the Purchase Price

Submit your financial documents to secure a bond (or provide a bank-issued guarantee for cash purchases) for the remainder of the purchase price, within 30 days of countersigning the Sale Agreement. You’re now a homeowner – congratulations!

7. Building Your Apartment

Good homes come to those who wait..while the development is under construction. During this time, you’ll be invited to special events like a ground breaking and roof wetting – along with monthly updates on how your apartment is progressing. Customising your apartment is an exciting phase of the build period. The full development build duration is roughly 18 months. Important – no payment is required while your new home is under construction.

8. Completion and Handover

Once the building is complete, you’ll receive the keys and an occupancy certificate (OC), marking the official handover of your property. Honey, you’re home!

9. Occupy or Rent Out the Property

From the date your OC is issued, you will be able to move into your new home or start earning rental income.

10. Occupational Interest

During the period before the property is officially transferred into your name at the deeds office, you will need to pay occupational rent to us. This allows you to occupy the property while the transfer process is underway. During this period, you will not be required to pay your bond as well. Think of occupational interest as the same as your bond repayment.

11. Transfer of Ownership and Title Deed

On the day of transfer, you’ll receive your title deed. If you used a bond guarantee, bond repayments will begin from this date. The building’s Body Corporate will form within 14 days of transfer, ensuring smooth management of the building.

BENEFITS OF PURCHASING A PROPERTY OFF-PLAN

1. Save on Transfer Duty

One of the most significant advantages of buying off-plan in South Africa is the absence of transfer duty. The tax is included in the sales price, meaning no additional transfer duty is payable. This can translate into substantial savings.

2. Capital Growth Potential

When you purchase a property off-plan, you lock in the price at today’s market rates. By the time the property is completed, its value typically appreciates, offering you significant capital growth. It’s a smart way to invest in the future, especially in a burgeoning property market.

3. Modern Design & Specifications

Off-plan properties are designed with the latest trends and building standards in mind. You’ll benefit from contemporary layouts, energy-efficient features, and modern amenities that enhance your lifestyle and increase the property’s value.

4. High Rental Yields

For those interested in rental income, off-plan properties in prime locations tend to command higher rental rates. Modern, well-designed apartments with attractive amenities are particularly appealing to tenants, ensuring you get the most out of your investment.

5. Customisation & Personalisation

One of the most exciting aspects of buying off-plan is the ability to personalise your new home. From selecting finishes to choosing fittings, you can tailor the property to suit your style and needs, creating a space that truly feels like your own.

6. Cost Savings and Initial Discounts

Off-plan properties are often sold at lower prices compared to completed properties. Early buyers can take advantage of these initial discounts, making it an economical choice for investors and first-time buyers alike.

7. Secure Deposits

Your deposit is held in an interest-bearing account, ensuring it’s safe and earning interest during the build period. This adds an extra layer of financial security to your investment.

8. Early Choice of Unit

Buying early in the development phase gives you the best selection of apartment. You can choose the one with the best view, the preferred layout, or the most convenient location within the development.

9. Legal Protection Through CPA

In South Africa, buying off-plan is protected by the Consumer Protection Act (CPA), which ensures fair and transparent transactions. This legal safeguard provides peace of mind to buyers.

Like to buy an off-plan Cape Town property? Click to enquire now.