Is a New Development a Good Investment?

Are new developments the way to go? If so, what are the benefits of buying into a New Development? Do the pros outweigh the cons?

The Louw & Coetzee Properties' Team get asked these questions more often than not, so we thought we would lay out just some of the advantages of new property developments...

Let's take a look at these 4 reasons why a development is a good investment:

• Save on Transfer Fees
• Less Maintenance Costs
• You get Guarantees
• It's a Good Return on Investment

Save on Transfer Fees

One of the most advantageous reasons for buying into a new development would have to be the financial benefits. You save so much money by not paying transfer fees because you are getting your house / apartment / duplex straight from the developer! Ordinarily the developer is registered as a VAT vendor, meaning that the purchase price of a product includes VAT and for that reason, transfer duty cannot be levied.

In some instances, attorney transfer fees and bond registration costs are also included in the sale, meaning you can literally save thousands in cash flow. Fees are calculated on a sliding scale, to see what a house would cost you, check out our cost calculator here.

Less Maintenance Costs

Your home is a 'new build', therefore you will not need to pay to renovate or fix tiles, cupboards and hardware, or repaint, at least not for a few years. Yes, paying for a new home may seem expensive, but when you compare it to buying an older home that needs some fixing up, buying into a new development may seem more financially viable.

You get Guarantees

According to Private Property and their article on the pros and cons of new developments, "you have a 5-year major structural defect warranty as well as a 1-year roof leak warranty from a building contractor registered with the National Home Builders Registration Council (NHBRC)."

It's a Good Return on Investment

Generally, a new development is positioned in an up-and-coming area whereby the capital growth of the property you buy will increase exponentially. Whether this is from the date you buy to the completion of the build, or in five years' time, one can expect a good return on investment.

According to Real Wealth Network, "new construction homes are a good strategy for investors looking for growth. Investing in new and emerging markets can increase your property's appreciation rate and build equity faster."

Louw & Coetzee Properties has experience in successfully marketing over 50 new developments. Take a look at a few of our current new developments.

Written by: Hayley Kellerman