Buying a property in a property development works much in the same way as the proverbial words in Hebrews 11 verse 1 defining faith. Despite having its own peculiar benefits, it is a move based on trust as the Purchaser is essentially buying a property that cannot be seen at that time and which will only be visible in future. It surely is being ‘sure of what you hope for, certain of things not seen.
Nonetheless there are benefits when one takes this leap of faith, such as that in the event the development has a nod from a bank (approved financing), getting finance to purchase the property in the development will likely be a stroll in the park especially for those purchasers who already have pre-approval certificates.
Due to the fact that this is a sale transaction where the object is not yet fully in existence, it is very important to properly investigate the track record of the developer e.g past developments, any issues with their finished properties, progress of the development, experiences of their past clients etc, so that one knows what they are getting themselves into.
We read of a case in Western Cape where the developer used a door of cheaper quality than what had been agreed on, resulting in the property being broken into by burglars. Luckily only a few items were stolen, but it could have been worse.
Further it might happen that the development (construction) is lagging behind schedule due to various aspects, which may well result in the purchaser having to pay occupational rent in the event that transfer has not been finalised as yet. This might be a huge setback for some purchasers.
We advise that Purchasers of property in new developments do their investigation beforehand, so that they are fully aware of the choice they are taking. Both the advantages and disadvantages as discussed in this article must be weighed against the peculiar circumstances of the Purchaser so that at the end of the day one is happy with the decision they eventually make.
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