The Millennial generation is popularly known as ‘Generation rent’, however the tables are turning, as more enter the property market as first-time buyers. Between 2015 and 2017, Lightstone Property reported that 330 000 Millennials bought homes in South Africa, and of this total, 70% were first-time buyers. With the repo rate at its lowest in South Africa, and the fact that we are still in a buyer’s market; we can expect to see more individuals enter the property market.
Property purchasing is a big step, especially if you are starting off for the first time. Aside from identifying a central and secure location, there are a number of hidden costs to consider. With the Sibaya Coastal Precinct being a newly developed node, there is no question about the premium security and lifestyle it has to offer, and the accessibility it has to other popular nodes.
Off-plan property developments, such as Gold Coast Estate, offers first-time buyers the opportunity to purchase property directly from the developer. As a result, purchasers avoid paying transfer duty costs, and pay towards their home in stages. If the purchaser is taking a bond out on the investment, they will only start paying towards their bond once the property has officially been constructed and transfer has taken place. This gives first-time buyers the opportunity to manage the payment process and also save as much as they can leading up to these next steps.
Some of the other advantages of purchasing an off-plan development is that homeowners are buying a new property at a lower cost than what they would if it were to be fully developed and ready to move in to. This also means that by purchasing at a base cost, the capital appreciation is greater in a short space of time. As a new home, owners will have low maintenance costs and lower levies to pay.
Sibaya is a growing interest for Millennials. If you are interested in entering the property investment market, register your interest and Invest Sibaya will be sure to keep you in loop on new off-plan developments launching.
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