Purchasing off-plan properties is a strategic move to build wealth. If you plan to buy an off-plan buy-to-let property in key property markets like Pretoria, and Cape Town, you will enjoy numerous benefits.
Buying off-plan means purchasing a house or apartment before or during construction, not after completion of the build. By doing this, an investor can enjoy a lower purchase price, capital appreciation before starting to pay their bond, as well as flexible payment terms.
In this post, IGrow Wealth Investments guides you through the crucial steps when buying off-plan buy-to-let properties and unlocks the secret to why this investment strategy can reap excellent financial rewards!
What is an off-plan property?
An “off-plan property” refers to real estate developments that sell before completion. A prospective buyer would look at architectural plans, 3D designs, or developer projections and artistic renders to see what the property will look like on completion. Developers rendering the look-and-feel of the completed development in visual plans help secure buyers for their properties. These properties are sold at a lower price before the property market demand drives purchase prices right up! Another great perk is that developers can offer buyers wonderful financing options, so the investor can enter the property market more easily!
6 Steps to purchasing off-plan properties
1. Market research
Before you commit to purchasing an investment property off-plan, you must research its location, the developer’s reputation, and the potential rental demand expected for the units in the off-plan development. Seek out suburbs that offer well-equipped or growing infrastructure, economic growth areas, and suburbs that see an increase in property values.
2. Ensure the off-plan developer is reputable
If your developer is known and trusted within the industry, they will meet the targets they outline, in terms of quality and timeframes of completion of your chosen property. IGrow Wealth Investments has partnerships with top-tier developers who have a proven track record of successful development projects and meeting their targets as often as possible.
3. Get an understanding of the payment structure
Traditional real estate purchases are different from off-plan investments. The difference is that off-plan developments frequently make phased payments possible. Look into the deposit requirements, payment installment plans, and if there are any financing options on the cards.
4. Ask the developer if you can view the Sales Agreement
Go over the Sales Agreement with a fine-tooth comb to gain a clearer understanding of the terms, anticipated completion date, and if there are potential penalties for delays in construction completion. IGrow’s rental agent team will assess developers ahead of time, and before launching partnerships. So, you need not worry- IGrow’s off-plan property developers go through a through check and vetting process so that we ensure our clients buy from known and trusted developers. These developers stick to targets as best as possible to deliver on agreed terms, be that financial or construction competition-date related.
5. Keep track of the construction progress
It is important to keep on top of the development timeline and any phases of launching, as developers usually notify buyers regarding planned timelines. If you keep a watchful eye on the development’s phased construction plan, it allows for transparency. You are, therefore, alerted to any changes developers may add to their original plans.
6. Be ready for handover and rental management
Once construction is complete, your property will be handed over to you. A final property inspection is needed. At IGrow, our Rental Managers carry out this process to ensure everything is top quality and deliverables are met. We also offer tenant management and property maintenance on an ongoing basis, taking the hassle out of rentals for you!
What are the benefits of purchasing off-plan properties?
As an investor, off-plan real estate poses numerous advantages. We’ll share some key benefits of buying off-plan properties:
- Off-plan developments offer a lower purchase price: off-plan units are frequently for sale at rates below market average, which means investment properties can gain value before construction is complete.
- These properties offer high capital growth: your off-plan property will appreciate throughout construction, meaning investors will benefit from a higher resale value.
- There are flexible payment terms available: a lot of developers offer their clients a set, structured payment plan, which alleviates the financial burden placed on buyers.
- You can sometimes customise the property you are set to purchase: off-plan buy-to-let buyers may be able to choose their favourite finishes and layout interiors that align with their specific preferences. At IGrow, we will let you know which of our off-plan property options offer the option to customise your property.
- The rental demand is a given: off-plan developments that are located in desirable locations bring in amenable tenants, ensuring you receive a steady rental income.
Off-Plan Property in Pretoria
As an investor seeking off-plan property in Pretoria, IGrow offers you an excellent option:
Circa Lynwood, Pretoria
Circa Lynwood, Pretoria, found in Pretoria’s highly desirable Lynwood area, this off-plan development is ideal for young professionals as well as students. This development is 95% sold out, so don’t miss out! It features modern designs and it’s near to business districts and top schools like Lynwood Primary and Willowridge High School. It’s also within easy access of top-tier universities such as Varsity College (private college) and the University of Pretoria (UP).
Circa Lynwood has it all, and many people are sold on the suburb alone, which has a central location and because it’s situated in a consistently high-rental neighbourhood! The development is ultra-modern with a private yoga studio, gyms, co-working pods, an on-site café, and even an entertainment emporium, steps away from your front door! It’s an ideal investment for buy-to-let property seekers and tenants seeking a modern, safe, and trendy home. Start earning immediately – tenants already in place.
Woodlands Lane, Pretoria East
Woodlands Lane, situated in Pretoria East, is well located. This off-plan development has numerous good schools nearby such as Constantia Park Primary, Curro Woodhill College and Garsfontein High. It suits young families looking for suitable schools nearby. There is also easy access to business nodes such as Menlyn Business District, Pretoria CBD and Centurion CBD, suitable for working professionals. For recreational and shopping purposes, Woodlands Boulevard, Woodhill Country Club and Parkview Shopping Centre are in the vicinity. Woodhill and Mooikloof suburbs offer a tranquil setting for this complex. These factors create a strong rental demand for investors seeking good investments.
Off-Plan Property in Cape Town
For investors seeking off-plan property in Cape Town, IGrow Real Estate International offers you top-notch developments in several key areas:
Summer View, Somerset West, Cape Town: This idyllic and prime off-plan development offers a lifestyle that many tenants would be after! It has a farm-style setup with farm animals for Summer View tenants’ children to feed. It offers cycling and running routes and a dam for sheer enjoyment! Tenants can enjoy access to the development’s clubhouse, gym, and restaurant. There is also access to Mountview Creche for prospective tenants with young children. Thus, for investors, Summer View offers excellent ROI, as you will be catering to a reliable tenant market, securing your monthly rental income. Occupation date: end of 2025.
Why IGrow Recommends Buying Off-Plan
IGrow Wealth Investments is delighted to offer the opportunity for its investors to buy off-plan properties which is a smart investment move! Off-plan developments allow investors to break into the property market at lower price ranges, they can benefit from their property appreciating in value throughout construction, as well as the perk of certain tax incentives. With the IGrow team’s expert assistance by your side, giving you a choice of prime off-plan developments, and sound strategic investment strategies to guide you, your investment will be secure and profitable!
Are you ready to invest in off-plan properties?
Contact IGrow Wealth Investments’ Wealth Strategists today, and uncover exclusive off-plan investment opportunities in Pretoria, and Cape Town.
