Buyer advice: Get the best deal on a new home

The property market has seen a resurgence in recent months of off-plan buying in new sectional title apartment and townhouse developments, as the demand for smaller, more secure and lower maintenance homes continues to increase.

There is also no transfer duty payable on a home bought directly from a builder or developer and of course newly-built homes come with structural and roof guarantees, while most existing homes are sold voetstoots, or as-is. 

However, buying off-plan or before the home is actually built is not a decision to be taken lightly, especially by inexperienced, first-time buyers, because you cannot see what you are getting. So if you go this route you need to take extra care to avoid disappointment with the finished product.

To start with, it is vital to buy only from a reputable developer or builder who has a track record of producing quality homes in similar projects. Some will have their own sales agents, but it adds an extra layer of protection if the off-plan homes are being sold by qualified and experienced agents from a trusted real estate company like Chas Everitt International.  

The second thing to do is make sure exactly what it is that you're buying in terms of floorspace and finishes, and that this is clearly written into your sale agreement. It is not uncommon for developers to create a "show unit" to help buyers imagine what their home will look like once it is finished, but you need to double check that yours will be the same size and not smaller.

You also need to ensure that all the finishes on show, such as floor and wall tiles, granite kitchen counters and built-in cupboards, are included in the advertised sale price. Otherwise you could end up paying considerably more in "extras" to get a homes that actually looks like the show unit.

Alternatively, when considering an off-plan purchase, you shouldn't be embarrassed to ask if there is any saving to be made by not having luxury finishes included at this stage. This might make the home more affordable for now and give you the opportunity to upgrade the finishes at a later stage - with the added advantage that you won's be paying them off, with interest, for 20-year period of your home loan.

The third thing that will make an off-plan purchase easier is to use the developer's lender - that is, the bank that is financing the project. Not only should it be easier to get home-loan approval from this bank, but you might also get a preferential interest rate and possibly a reduction in bond registration costs.