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Discover the Steps and Exciting Benefits of Buying Off-Plan Properties with Blok.

Spoiler alert – you only start paying the bond once your apartment is complete.

by Tia

Thinking about buying property? Opting to purchase off-plan might be your best decision yet.
Let’s get into the steps to buying off-plan.

Steps to Buying Off-Plan:

1. Determine Your Budget

Start by assessing your finances and getting 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 Properties and Contact Developers

Investigate different areas and developers. Look for reputable developers with a track record of successful projects. Examine floor plans, renders, and the projected capital gain of the property.

3. Sign the Sale Agreement

Review the Offer to Purchase (OTP) document. Once satisfied, sign the contract to secure your apartment.

4. Agreement Submitted to Conveyancing Attorneys

The signed agreement is processed by the developer’s 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 property’s transfer.

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.

7. Building Your Apartment

Wait patiently while the development is built. 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.

8. Completion and Handover

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

9. Occupy or Rent Out the Property

From the date your occupancy certificate 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 to your name in the deeds office, you will be required to pay occupational rent to the developer. This allows you to occupy the property while the transfer process is completed. 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.

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 purchases are an attractive option for modern homebuyers and investors.

From saving money to customising your dream home, buying off-plan comes with a host of benefits that savvy investors and future homeowners can’t afford to ignore. Let’s dive into the perks of buying off-plan properties.

Benefits to Buying 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.

For those looking to take advantage of these benefits, consider exploring developments by Blok, known for their well-thought-out, beautifully designed urban apartments. Investing in such properties can ensure you get the best out of your off-plan purchase. To find out more, click here.

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