Home, sweet, (brand new) Home | The benefits of buying off plan for first time home owners
Buying property off-plan is a great way for first-time homebuyers to get a foot on the property ladder. It comes without transfer duty as there is no prior owner, and the VAT is included in the purchase price. For these same reasons, it is also an appealing option for someone looking to purchase an investment property that can be rented out to generate income.
Early purchasers have an added advantage of getting great deals as the early phases of a development are often very competitively priced, and prices will increase as new phases are launched.
BetterBond National Development Manager, Jenny Rushin, says the traditional concern about buying off-plan, namely not being able to view a property in person, is of increasingly less concern, thanks to modern technology.
UPDATE | Real Estate fully open under Alert Level 3 - what you need to know
South Africa is preparing to get back to work on Monday, 1 June - with the Covid-19 Command Council stressing the importance of workplace health and safety procedures.
The new Level 3 regulations allow both commercial and residential property practitioners to get back to work; short term rentals for Leisure purposes remain restricted; evictions still on hold, unless ruled just by a competent court; and moving to new places of residence can continue.
South Africa's Covid-19 Command Council briefing on Thursday, 28 May detailed the final Level 3 Alert Level Regulations giving most of the country's workforce, including the Real Estate industry, the green light to start operating fully.
The former Alert Level 3 restriction on residential property sales and operations no longer apply. This means an estimated 46 000 property practitioners, who have not earned an income since the lockdown came into effect, will now be able to go back to work.
Crucial to the re-opening of the industry on Monday, will be the implementation of the proper health and safety protocols, including the need for a Covid-19 officer and safety plan that can be implemented and inspected as needed, as detailed by the CCC.
Should you fix your interest rate, now at a historic 50-year low?
The debate about whether or not to fix the interest rate on your home loan has been reignited by the recent rate cuts in response to the Coronavirus outbreak. This has brought interest rates to the lowest point in nearly half a century. What do the experts say?
South Africa is preparing to move to Alert Level 3 from 1 June with the restrictions on movement for citizens eased up considerably. The full regulations for Real Estate industry have yet to be confirmed.
“It’s important to remember that each person’s financial situation and their individual set of circumstances are unique. So, there isn’t a simple answer to the question of fixing, or not fixing, the interest rate on your home loan. But there are some important factors to take into account whenever you consider this question,” advises BetterBond CEO, Carl Coetzee.
Know your interest rates:
The repo rate is set by the South African Reserve Bank Monetary Policy Committee and indicates the rate at which they loan to the commercial banks.
The prime lending rate is the rate at which the banks lend to us as consumers. The repo rate and the prime lending rate are not the same because banks have running costs, infrastructure, admin fees and they take the risk of loaning money, so that has to be built into the margins they set. Remember, a bank is a business like any other in this regard!