Buying property off-plan: Here's what you need to know

Buying property "off-plan" means purchasing property in a cluster or sectional title development where only a few sample units have been built, thus buying from the builder's plan (of what's to come) or the developer's blueprint, opposed to a completed property. 

There are a number of advantages to buying off-plan but it pays to approach it with an open mind (and some imagination!) to ensure a hassle-free process and to limit possible disappointment when the keys are eventually handed over. 

What are the advantages of buying off plan?

Skoko Sebola, Principal at Leapfrog Midrand, says the main drawcard for buying off-plan is that there are no transfer fees payable and VAT is included in the purchase price. This is often very appealing to first-time buyers as it reduces the financial load and makes it a little bit easier to get onto the property ladder. 

Off-plan properties sometimes sell at a reduced price, compared to what they would sell for upon full completion. "Construction of the property can take anything from 18 to 24 months, which means the property can be worth as much as 10% more when it is ready for occupation, compared to when it was purchased off-plan," Sebola says.

Often there is significant scope for the buyer to give input on various aspects of the property, from selecting the stand to influencing the layout and/or selecting the finishes, sanitaryware and the like. Sebola advises that buyers need to check the terms and conditions pertaining to the development in this regard. 

Buying off-plan also means the purchaser is the first owner and occupant. "A lot is made of 'that new car smell' but that 'new home smell' is just as alluring," Sebola quips. For buyers who prefer a contemporary look and feel for their property, this is typically a great option. 

What are the drawbacks of buying off-plan?

The obvious drawback is that you need to rely on a visual to know what the property is going to look like upon completion. 

"Most builders and developers these days make use of very sophisticated technology, including state-of-the-art 3D renderings to realistically visualise the project, which really helps the buyer imagine what the final space will look like, which is very helpful," Sebola says. 

Arguably, the biggest risk when buying off-plan is that the final product will not align to the visual that was sold to the buyer. "In any transaction there is a small chance that things could go awry, which is why my advice to off-plan buyers is to take a keen interest in the process and make sure expectations are met at key junctures," Sebola shares.  

Legal recourse is available to buyers should things go wrong, thanks to the Consumer Protection Act. The moment you feel things are going right, get in touch with a property professional as they will be able to advise and guide you on the best course of action to minimise damage and financial loss. 

Check it yourself

Before the builders leave the property entirely, make sure to check the following with them, and have the confidence to point out anything you're even slightly uncertain or unhappy about. 

• Check that the walls and door frames are straight

• Make sure the plugs all work 

• Check the plumbing, including silicon sealing around sanitaryware in kitchen and bathrooms

• Ensure there are no hairline cracks in tiles or walls

• Check that the doors of cupboards open and close properly

There is no need to fear buying off-plan, quite the contrary. Approach with an open mind, involve yourself in the process from the get-go and ask as many questions as you need to. That way the day you get the keys you can really embrace and enjoy that new house smell!