INVESTING
Buying properties directly from developers is a win for the investor for a number of reasons :
1 . The investor gets to choose the best units in the development prior to the launch date . I am sure you have seen many advertisements for the sale of developments that state on the launch date that five units have already been sold . The five units have been sold to investors that have contacted the developer directly and you can be sure that they are also the five best units available .
2 . By purchasing a property off plan from the developer , the investor is purchasing the property at today ' s price for a product that may only be delivered in twelve to eighteen months ’ time . In an upward moving market , just by signing an offer to purchase the unit and paying a small deposit , your unit could increase in value before you take transfer .
3 . An additional bonus for investors buying units from developers is that there is no transfer duty payable as most developers are registered for VAT . The effect of this is that if the bank grants you one hundred percent finance to purchase the property , you will not have to fork out an additional amount over and above the purchase price to take transfer .
Jason Lee is a property investor , developer , realtor and author . He invests in multi-million rand deals in South Africa and abroad . He has authored 4 Best-selling books in South Africa .
• Making money out of Property in South Africa
• Fast forward your retirement through property
• Retire rich through property
• 10 Simple steps to Property Wealth
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46 JUNE 2024 Real Estate Investor Magazine