New developments have advantages

SOUTH AFRICAN buyers seeking security and a fuss-free lifestyle are increasingly opting for brand-new homes in developments and ooba Group chief executive Rhys Dyer predicts new developments will dominate the property landscape for years to come. reasons,” he says.

“Newly built homes in developments appeal to potential home buyers for many

In addition to being able to buy off-plan, buyers will also not have to pay transfer duty. This is because the payment of transfer duty only applies when a property changes ownership and this is not the case when purchasing a newly built home.

However, Dyer does caution that buying a newly built home in a development is still subject to VAT.

“You will need to pay VAT in the absence of transfer duty as the house is registered in the name of the development company and still subject to tax.

“But if you are buying a new build, you will still pay less tax than if you were buying an existing property from a VATregistered private seller. This is because a new development property is registered at the minus-VAT value as an incentive to buyers.”

Aside from the financial rewards, he says there are numerous benefits to buying in to a new development, including:

• The home is a blank slate that you can furnish and fit to your personal taste and requirements.

• New houses normally need less maintenance and upkeep than older homes.

• Newly built homes are constructed with energy efficiency in mind, often incorporating green technology.

• Security measures, such as access control, biometric access, perimeter fences and CCTV, are often included.

• Community living. “We’ve noticed a huge uptick of new developments across the country that cater for a range of buyer needs, including familyfriendly estates, coastal developments and lifestyle estates,” Dyer says.

NEWLY built homes in developments appeal to potential home buyers for many reasons, including not needing to pay transfer duty. PICTURE: THIRDMAN/PEXELS