Buying in an off-plan development, like those developed within Sibaya by the Devmco Group, means you’ll already save money as the purchase is Transfer Duty free. By investing in a good location your property will also see growth in value, which means that when you do want to sell you will walk away from the deal with money in your pocket.
Earn a passive income
The interest rate is the lowest it has been in almost 50 years which puts those looking to invest in property in the best position. If there was ever a time to make an investment into this asset class, it is now. Here’s a quick breakdown of what you can save on your monthly bond repayments by purchasing now:
Transfer Duty Savings
Buying property off-plan, from a developer like Devmco Group, means you’ve already saved – properties priced between R 2 250 001 to R10 000 000, in-cure a duty of 11% on the value above R2 250 000 plus an additional R80 500. As an example, if you were to purchase a unit at Parc for R3.5 million, you’d save R 465 500 just on transfer duty alone.
By buying off-plan you can take your savings a step further – in order to secure your unit at launch you would have to pay a deposit plus a pre-emptive fee -these amounts vary depending on the unit and the agreement between developer and buyer, but let’s use Parc as an example:
Deposit: R350 000
Pre-emptive fee: R50 000
Total investment at launch: R400 000
This means that your investment at launch is only R400 000 and not the total bond amount of R 3 145 000. Here are a few scenarios to illustrate the benefit to the buyers-
Generally, the time between the launch of an off-plan development and transfer can be as much as 2 years, during which an investor like yourself could see the value of your property increase. As a development moves closer to completion, demand will grow and will therefore push the value of the property up. If you get to the point where you want to sell the property, you will effectively make a profit on the sale as a result of the value growth experienced between launch and when you sell.
Most often, developers will launch a development at an unprecedented price so buying off-plan as early as possible always pays off and puts you in the best position to earn off your investment. This is what we call passive income- money you earn by doing nothing, simply just investing into property at the right time in a good location.