Why buy new? The benefits of purchasing a home directly from a developer
Purchasing a new home from a developer does not only save you a substantial amount of upfront costs but includes a unique set of additional benefits.
We look at 5 great advantages of buying from a developer:
- 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.
Buying from a developer means you don’t have this cost whatsoever!
- 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.
- 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” says Miguel Rodrigues, Director at Rabie Property Group. “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.”
- Lower operational costs
There is no such thing as a fixer-upper when you buy a new home from a reputable developer. 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.
“Newly constructed homes use energy more efficiently” says Rodrigues. “New homes have a tighter-sealed building envelope that helps prevent the cool air in the summer and the warm air in the winter from escaping. With building technology consistently improving, things like insulation of windows and doors also improve. Advances in electrical installation such as heat pumps rather than geysers, could accumulatively be a huge cost savings for the new home buyer. Think energy efficiency that translates to cost efficiency.”
- Your choice
Buying from plan has great advantages in terms of customising your home:
You can choose your fixtures and finishes from a selection chosen by the architect and don’t have to be satisfied with old carpets and bathrooms from the 70’s. At a lower cost to you, you could be living in a brand spanking new home with the latest look and feel.
You have the unique opportunity of exercising your preference in terms of location within the scheme. Therefore, if you prefer the apartment on the top floor with views of Table Mountain, you could have first choice.
Find out more about our latest developments for sale by following the links or getting in touch with our agents:
CENTURY CITY APARTMENTS
AXIS | https://axis.capetown/
BRIDGEWATER ONE | https://bridgewaterone.com/
Contact Devon | 082 446 9188 or Tamarin | 084 301 8616
BURGUNDY ESTATE APARTMENTS & HOMES
Contact Brian | 082 571 7024 or Aldo | 082 451 9990