Out-the-box or existing home?

BY BONNY FOURIE bronwyn.fourie@inl.co.za

Both options have their advantages and disadvantages for buyers

THERE are many things to consider when buying a new home, with the most common thoughts revolving around the area you want to live in, the price you are willing to pay and what the property has to offer.

Another consideration, however – and one which is becoming increasingly relevant – is whether you want to live in a brand-new home and purchase your property off-plan or whether you want to move into an existing, older home.

Whichever option you feel is right for you, there will be things you need to know and look out for.

Buying off-plan

While there are pros and cons to buying off-plan, Gareth Bailey, Pam Golding Properties area principal for Durban Coastal, says if you avoid a few simple pitfalls, you are likely to enjoy your new build and have a positive investment experience for many years to come.

One of the most important factors to consider when buying off-plan is the pedigree and track-record of the developer and the professional team, because this affects the likelihood the development will be delivered on time and to specification.

“When friends share stories about negative development experiences, they usually relate to delays and the quality of the delivered product.”

New does not mean there is no maintenance Brand-new developments, with their modern designs and facilities, appeal to many buyers, but homes in such developments will come at a higher price than those in a similar, existing development. In return, you get new technologies which could save you money.

However, Lance Gore of Spencer Gore Developments, says you must not expect that no maintenance will be needed.

“In fact, new builds require ongoing maintenance but it is generally on a much smaller scale.

“For example, if buying an older house you might need to upgrade the kitchen, which can be quite costly, whereas if you buy a new property, it will have a modern and efficient kitchen.

“There is a maintenance saving with a new build but if you don’t do ongoing maintenance, even with a new build, that saving soon disappears.”

Part of the responsibility of choosing the right home in the right development is ensuring you know who the developers are.

Buyers purchasing a home off-plan should buy only from reputable developers who have a track record of producing quality homes in similar projects, says Berry Everitt, chief executive of the Chas Everitt International property group.

“They should also ensure they know exactly what they are buying in terms of floor space and finishes and that these details are clearly written into their sales agreements.

“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 doublecheck that yours will be the same size and not smaller.”

Buyers should also check their agreements to ensure all the finishes on show, such as the floor and wall tiles, kitchen counters and built-in cupboards, are included in the advertised sale price, Everitt says.

Choosing the right estate in the right area

New residential estates are being developed at increasing rates, with many mushrooming the same areas. So how do you ensure you choose the right estate for you?

Rabie director Mariska Auret advises that you first choose an area that suits your lifestyle and carefully consider whether it caters to any other requirements that you might have.

Once you have done this and found an estate that you like in that area, you should ask for the projected levies and rates to ensure that, from a cash flow point of view, the estate suits your budget in the longer term.

“It is also important to know what the overall master plan of the estate looks like – that you are aware of how it will be developed in the future if it is not completed yet,” she says.

Benefits of buying older homes Herculene Visser, Lew Geffen Sotheby’s International Realty area specialist in Tokai, says one of the advantages of buying an existing home is that the surrounding suburb is usually established so there is little risk of living with the disruption of ongoing construction.

These areas also often offer the convenience of a developed infrastructure and an array of amenities such as shopping centres, schools, sports facilities and places of worship.

“Gardens are most likely well established and well cared-for so you won’t have to spend time and money establishing one from scratch,” she says.

Disadvantages include that you might have to do renovations to upgrade the property to your standards and to meet your needs and older homes often require more maintenance that can prove costly over time.

Developing area or established neighbourhood?

Similarly, buyers will need to decide if they want to live in an area that is still seeing new development or a suburb that is already established.

Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa, says older homes in more established neighbourhoods tend to be more in demand than newly built homes.

Most newly built homes are found in expanding suburbs that will grow in demand over time as the neighbourhood becomes more established.

Buying a home in an existing area also usually means that you know what to expect from your neighbourhood.

You will know what amenities and facilities are on offer, there will already be data available on crime statistics and property values, and you will have an idea of the general feel and sense of community in the area.

You may even already know the area and have more of an idea of which parts you would like to live – or avoid living – in.

NEW HOMES might cost more than existing properties but you will probably have less maintenance to carry out. PICTURE: MAX VAKHTBOVYCH/PEXELS