With three interest rate cuts in 2020 thus far, the prime lending rate is the lowest in 35 years at 7.25%. It’s the perfect time to buy a new home!
In addition, when you buy from a developer, it does not only save you a substantial amount of upfront costs, but includes a unique set of additional benefits. Rabie has 41 years’ development experience and has successfully completed numerous residential, commercial and retail schemes.
We look at the 5 reasons why now is the best time to buy from a developer:
1. Why rent if you can buy?
With the current interest rate, it has become a lot more affordable to invest in property, as your Rands stretch so much further. Why pay rental to a landlord if you can own your own home?
Let’s take a bond of R1,3-million. At 7,25% over 20 years, your monthly bond repayment will be R10 275. Over 30 years, you are looking at only R8 868. (Calculated without a deposit, a 100% bond at 7,25% interest rate per annum.)
Get in touch with your bank to find out what you can afford to buy – you might be pleasantly surprised!
2. No transfer duty
One of the biggest savings on a new home is that you don’t have to pay transfer duty. This tax is due for all homes exceeding R1-million and starts at 3% of the value above R1-million. A sliding scale is applicable when calculating transfer duty, which means that the higher the value of the property, the higher the transfer duty. Refer to the latest transfer duty table as issued by SARS here.
If you buy from a developer, it means that you don’t have this cost whatsoever!
3. VAT included
When you buy from a developer, the purchase price includes VAT, therefore the price you see is the price you pay. When buying a resale, however, the Transfer Duty is not included and, in most cases, must be paid in cash.
With a developer sale, the price is all inclusive and you can get a mortgage loan based on this price. In other words, if you qualify for a 100% bond, you can finance the total price including the VAT.
4. Everything’s new!
Don’t underestimate the feeling of knowing that you are the first owner of a home – everything is new, clean and has never been used before. The convenience of moving into a move-in ready home is a huge stress reliever.
Relocating is a stressful change in one’s life and knowing that you are moving into a brand-new home is very exciting. Modern designed homes are also designed for the way we live – instead of a boxy, poky old house, a newly constructed home is a bright and welcoming experience from the moment you walk in the front door.
5. Lower operational costs
There is no such thing as a fixer-upper when you buy a new home from a reputable developer like Rabie. Repairs, maintenance and alterations should be zero or very minimal in the first few years. If constructed by a reputable developer to the latest standards, you could enjoy lower running costs and efficient energy measures.
Find out more about our latest developments for sale by following the links or getting in touch with our agents:
Contact Devon | 082 446 9188 or Tamarin | 084 301 8616
AXIS
Available immediately
Axis offers secure luxury apartments and is located on a high-visibility corner site adjacent to the vibrant Century City Square development, Axis offers superbly convenient access to a host of amenities. This outstanding position offers unparalleled views of Table Mountain and Table Bay into perpetuity, as it overlooks the Ysterplaat Air Base.
BRIDGEWATER ONE
Under construction | Available 2021
Bridgewater One is a uniquely integrated family of buildings perfectly positioned between the buzz of Century City Square and the serenity of the new Ratanga Park.
When complete in mid 2021, the development will consist of an 80-room hotel flanked by 122 residential apartments, overlooking three hectares of water and greenery, and three individual office buildings.
Contact Brian | 082 571 7024 or Aldo | 082 451 9990
HAZELWOOD
Available immediately
With plenty of green pocket parks, a manned guard-house, swimming pool with braai facilities, Hazelwood is a great buy for investors, first-time buyers, young couples or down-scalers. These exquisitely planned, contemporary apartments are arranged in micro-blocks of just six units each, all with plenty of natural light and some with great sea and mountain views!
TYRIAN ROAD
Available immediately
Own a great family home!
Tyrian Road is a cluster of twenty-two freestanding three-bedroom houses with private gardens located in one of the best areas of Burgundy Estate. These superbly designed contemporary houses make an ideal place to raise a healthy, South African family. We have completed a limited number of these single and double-storey homes, ready for you to move right in.
