Buying Property from a Developer!

People love this. Don't you want to buy from the developer. It'll save you thousands and thousands of rands, and often it does. but "Buying Property from a Developer" is it all that grand?

What the developers love to do, and it's a quick and sure way for them to sell their properties off plan is that they build one or two units. This way they have a sure way to show them off or as estate agents like to say put them "on show". You then see this great opportunity to buy "off plan". What falls into your lap now should you go for it is the following;

1. The responsibility to ensure that the time scale is realistic
2. He is a reputable developer
3. Checks are made on his credentials
4. Whether or not the developer is using a builder
5. Ensure you establish exactly what the development includes

A marketing tool that the developers use is the fact that "transfer duties are not payable". What the purchaser does not realise is that the developer is registered for VAT. and the VAT amount is included in the selling price. e.g. The purchaser buys for R600 000.00. This price includes VAT @ 14%. The purchaser is under the impression that he ahas bought a house that is worth R600 000.00 and wants to re-sell it for R660 000.00. He is not able tot get that price, because the house is actually worth R530 000.00 plus VAT.

Now don't get me wrong I'm not saying that buying off-plan is bad, just keep your eye out. There are some pitfalls.

I found a great article on the Top 10 pitfalls when buying from a developer. Read on here...
http://www.persfin.co.za/index.php?fSectionId=709&fArticleId=2495516

If you're interested in buying land for development. I have a list of developments currently for sale from Rawson Properties. For more information please contact the WizardMan

DEVELOPMENT LAND

ANDEON
2.04 Ha No Application corner stand R1.350 mill
10.50 No Application close to New Township establishment R9.00 mill
38 ha No Application adjoining New Township Establishment R22.0 mill

AMANDASIG
BEST BUY! 8.50 Ha Nice view No Application R8.50 mill +- 4.5 ha can be develop due to green belt Can get 25 to 30 units p/ha. Unique! All nestled against Magalies
15.9 Ha No application – R 9.500 mill –will loose portion due to green belt
2.1 Ha zoning in process, EAI in 1 months time– R6.250 mill

CLARINA
3.2 ha - Nestled between developments
Last land available in Area!! R10.5MIL

CHANTELLE
4.20 Ha – Zoning in process R 8 Mill
4.66 Ha – No application R9.5 Mill
7.00 ha – Prime Spot No application R23 mill

DERDEPOORT
3.5 Ha No application N1 front R7.500 mill
3.7 Ha No application N1 front R9.00 mill

HEATHERDALE
Best Buy! 5.2 Ha – No application R8.2 mill – will get 40 unit per ha
I need an urgent offer here currently offer on table of R7.8mill with 10% deposit &guarantees in 30 days!
2.2 Ha No Application Prime area R3.950 mill
6.1 Ha No Application close to schools R7.800 mill
2.1 Ha Zoning in Process 92 units R7.000 mill
1.38 Ha No Application in First Ave. R2.100 mill- need urgent offer! She wants R1, 850 nett – will get 40 units per ha offer can be subject to zoning period allowed 8 months
2.20 Ha No Application - Good location R5.20 mill
4.40 Ha Adjoining Pieces – Prime location R12.0 mill
6.00 Ha Adjoining Pieces - Prime location R15.0 mill
9.00 Ha Adjoining Pieces – Prime location R13.0 mill

HEATHERVIEW (above Brits Road)
2.10 Ha Zoning 25 units p/ha R6.50 mill
5.10 Ha No Application R10.500 mill

HESTEAPARK
22-ha Res1 143 stands on 5.4 ha, Res3 -40 u/ha 9 stands – 7.4 ha
Special Zoning 4 stands 2.3 ha, Special –offices /G- house1.1 ha
Streets/parks 4.6 ha R49 mill

PTA MOOT AREA
PRIME! PRIME! PRIME
Over looking PTA CBD!
Ideal for High Density – High Rise Flats etc
6 ha - No application - Price R21 mill neg

KARINPARK
OPPORTUNITY
4.2 Ha No Application can apply for 100 units / ha!!! JV will be considered! R15MIL

ONDERSTEPOORT
2.9 Ha - No application -On busy Lavender Road R4.9MIL

MIDRAND
25 ha - Last in this Class!
Zoned 25 - 30 units / ha
Opposite luxury developments
Electricity will be available! R57MIL

STRYDFONDTEIN - PTA NORTH
Next to new Developments
127 ha Adjoining pieces From R850k / ha
51 ha - Zoning in Process R65 mill

THERESAPARK
1.5 ha In Town Application 60 % coverage 3 story’s R5.90 mill
3300 sqm - zoning in place Res3 - 2 stories- 9 units R2.4 mill

WILLOW BREA
2.10 ha Zoned 41 full title stands or 55 sectional title units R6MIL

WONDERBOOM AH
Good buy!!
2.2 ha earmarked for Light Industrial R3.5MIL

PTA - NORTH
Half & Full Burger stands
Various stands available from R395K to R3.8 mill
Ideal for flats - zoning 10 to 30 units

INDUSTRIAL & COMMERCIAL

ROSSLYN
4.3 Ha Zoning in Process R6.80 mill
4.4 ha Zoned 25 000 m² Factories Services done by seller R8.80 mill
28.0 Ha Next to New Township Establishment Rights in Place
Industrial 1, Wholesale, Garage & Convenient Store
With Car Wash, Butchery, Bottle Store & General Dealer. R22. Mill – make an offer!!!

SILVERTON
Industrial park – R130 mill Good Yield! Strong Tenants!
Letter of Intend Needed for Appointment & Info!

LOW COST HOUSING LAND

SOSHANGUVE
130 ha – Zoning in process. R75MIL

SOSHANGUWE
86.33ha – Township establishment already approved but the rights lapsed, new application in. Mineral rights held by Johannes Hoolboom by Noterial Session 134/1903-5. Geo-
Tech has been done. No land claims R15MIL

PTA NORTH
8.5ha – 5min drive from shopping centre. AGRI zoned. Potential – Medium Cost housing, River frontage Central location. R9.8MIL

HEATHERDALE
2.1HA agri Potential 60units/ha. R4.5MIL

HEATHERDALE
6.12ha AGRI Services very close, Surrounded by various developments, Potential Sectional Title. R6.8MIL

RANDFONTEIN
120ha + 600ha AGRI, ROD, Geotech, EIA done on 120ha – 600ha formalities because of surroundings. Potential Medium cost housing, community facilities, business opportunity, RES component: Single res stands, semi-detached units, 2 story stack flats. R45mil

ATTRIDGEVILLE
20.3HA to develop –Very good soil (SCALIE up to 70m deep), little earth works, good location, easy accessibility to main roads / public transport almost completed ideal for affordable housing development. Suitable for shopping Centre. R4.5MIL


RANDFONTEIN
+-24ha Development land neighboring golf course, across the road from high school – tranquil vicinity –finalization of township establishment in progress rezoning approval expected within 6 months. EIA approval in place. Excellent location close to Highways, home lake station, rand gate shopping centre, Robinson private hospital\, ideal for town house and cluster development, lake facing full title stands.
Potential 658units. R55 500 000.00