Back in 2005 / 2006 when the market was booming, developers were laughing all the way to the bank. Buyers were queuing up to purchase. Banks were falling over themselves to do the finance. And if you wanted a slice of the pie you had to sign very one-sided agreements to purchase.
But times have changed. When the economic crisis came the finance from the banks dried up. Buyers stopped purchasing, and many developers were stuck up a creek without a paddle. For a few years developments almost came to a standstill.
We’re in 2013 now, and over the last few years many developers have learnt an important lesson: Develop a product the buyers want and offer outstanding value.
These developers have found a way to deliver a first-class product at prices no one can match. Where else can you buy a brand new home with outstanding finishes in a secure estate for less than a 2nd hand resale property in the suburbs?
And what’s more, the developers are funding the construction themselves, at their own cost, and delivering a completed property to the purchaser – who only pays on transfer.
Somerset Country Estate properties by KingsHill are almost sold out in just over a year. And Kelderhof Country Village is selling at unprecedented rates. Buyer enquiry for these products has exceeded all expectations.
Following closely in their footsteps are Silver Fox and Blue Crane Estates. Both of these estates now offer a much improved range of new homes on freestanding plots from as little as R 995 000 including VAT. The developer finances and constructs the homes, and the buyer only pays on completion and transfer. The buyer also gets to choose their finishes from the developers’ range – so they can put their own personal touches on their new home.
Croydon Olive Estate has now also launched a range of Turnkey homes sold on the same basis. These architect-designed homes open onto olive groves, offer a secure lifestyle, and homeowners also benefit from a luxurious lifestyle center, pool, and gym.
All five estates are marketed by Harcourts Platinum, who have played a large role in helping these developers deliver a Turnkey product the market wants, at prices that they can’t ignore.
So, if you thought that owning a brand new home in a secure estate was beyond your reach, then think again. These developers are bending over backwards to offer you a world-class product at prices you will never see again. The prices include VAT, so your only additional costs are attorneys transfer fees, and bond registration costs.
While many still long for the “good old days” some developers have listened to the market and adapted. Proof again that “every cloud has a silver lining”.
Principal of Harcourts Platinum, and Director of Harcourts South Africa
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