When it comes to buying property, everybody has their two cents’ worth of advice to add. Most agree that even now while many people are having to tighten their belts, the property market is on the verge of turning around and buying now seems to be good idea. But the question still remains – what to buy?

Property is not small change, although it can be a lucrative market. The options of where and what to buy are endless and you don’t want to make the wrong decision. This one tells you it is safer to buy previously owned property, while another insists that new property developments are the way to go.

There is certainly no shortage of new property developments in South Africa, and there is no right or wrong answer to this choice. As a buyer, you have to consider your own needs and weigh up the advantages and disadvantages of your choice.

Advantages and Disadvantages

One of the most important factors to consider is whether you regard this as an investment property. New off-plan property developments offer great investment opportunities, especially if you purchase before construction begins or early on during construction phase. Prices are often initially set below market value to attract investments. Purchasing early also means that you have the pick of the best properties for sale, like the penthouse or the property with the best view.

If you buy property during the final phase of construction it significantly diminishes the investment possibilities for the property. Also, the best properties will already have been taken.

Buying property off-plan as well as early means that you may have to wait a long time before your property will be handed over to you. Delays are not uncommon in the construction industry, and this might extend the period you have to wait even more. It also means that you are not able to see the finished product until construction is eventually completed. On top of that, as the area is still under development, you do not know the ways in which it might change during and after the construction.

These potential problems can be pre-empted by purchasing only from respected property developers and to make sure that the contract includes a penalty in case of a delay. You can also ask your lawyer to look at the local town plan in order to gauge the impact of future developments on the property you are interested in.

Another aspect that many buyers fear is that the constructor might go bankrupt and that the property they eventually take possession of might not live up to the standard advertised prior to the purchase. This should not be a problem when buying from respected promoters and developers, but as a safety measure you can make sure that a bank guarantee and insurance are in order.

After all of this is said and done, new property developments in South Africa do hold certain advantages over and above previously owned properties. As you are buying directly from the promoter, the purchase price does not include the financing of agent fees or having to pay any transfer fees. The purchase price is also set by industry professionals, so you will not find a big fluctuation between the values of similar developments, as you might in the prices set by private sellers. Differences in price will be influenced by the location, the quality and features such as the view.

Another huge benefit is that new buildings usually carry a guarantee to cover main failures in the structure, whereas the responsibility of any damages to a previously owned property will lie solely with you. You are also the first person to occupy this new development, so you can personalise it in any way you want, without first having to spend money on removing installations or modifications made by previous owners.

Buying new property can be daunting, so the most important factor is that you know what you want and what would suit your specific needs. Once this is clear and decided upon, you can go ahead and assess the advantages and disadvantages connected to your options and make an informed decision from there.

By: Lulie Swanepoel

About the Author:
Author Bio

PropertyGenie is a leading online estate agency offering you new property developments as well as existing structures for sale throughout South Africa.

If you are interested in buying commercial property, you will need to save a lot of your valuable income to be able to buy. Especially if you are considering buying a property for your business. Likewise if you are just starting out and what to buy a property for your new business. Either for your self or something that you can lease out, like an apartment. What ever the reason you make, there are many things to think about when it comes to the decision you are making.

For instance you need to know how much money you have to put on a property. Knowing this type of information will help in making the decision of what type of property you can buy. You will also need to have a 20% deposit of the total amount on the property. To be able to put a deposit down on the payment.

You will also need a lot of time, especially if you have the right place and the right amount of money it still make take a while for the process to go through. There are many factors to deal with in this property market when it comes to the negotiation practice, for example the appraisals, issues about the environment surrounding the building, safety codes and more. Unfortunately a process like this can take up to more than a year. So be prepared for a long weight.

Then you’ll will need a broker or agent, that is a professional. Someone that will be able to help you look for the right property that is right for you. They would also need to be able help you with all the type of dealings that you will go through. So that you are aware of the process it will take in getting the property. Look for information from business owners that you know that will give you the right kind of advice.

Take the time to chose the property that is right for your business and your needs. Figure out how much money you are willing to put in to the keep of the business and what needs to be fix, to be able to run it properly. Also consider your employees, in regards to what and how many bathrooms you will need, if you need a kitchen. Also look into what type of monthly payments that you will have to pay when it comes to your bills.

Look at getting the property inspected before making any deal. Do research in regards to the repairs and work the place as had done to it, and if there will be a warranty available. This type of investment will be a major investment for yourself, so is best to be prepared in order to protect yourself.

Finally, when looking at buying commercial property there are many things to consider. You will need to know what type of money you will have, if it is the right place for you and your business. The kind of money you are willing to put into it for keeping up with the business and the maintenance of the place. You should be really prepared when going into a decision like this as it will affect your future, know if it is right for you otherwise it isn’t really worth it.

By: Jeremy Jane

About the Author:
Jeremy is a bird watcher and builder of bird houses that also writes articles on various topics. To read more articles by Jeremy visit yankeeflipper.org including the latest articles on Yankee Flippers

You will be surprised how many people own their properties free and clear, and are willing to finance the entire amount or a good part of the mortgage to make the deal happen. Usually, though, you will be getting secondary financing from the owner. That means you get the majority of the money (the first mortgage) from another source, like a bank, and the seller will give you the rest in the form of a second mortgage.

There are four types of owner financing to that you could ask for:

Type 1: Ask for the principal to be paid at certain later time. If you notice, I didn’t mention monthly payments for interest; only principal be paid at a later date. Why pay monthly payments or interest if you don’t have to?

Who would go for this? Most sellers won’t… but some will. You only need one to get yourself a great deal, so ask for this each time. If they do insist on interest or payments, go to the next offer.

Type 2: Principal divided into monthly payments. Again no interest; you’re paying off 100 % principal.

That’s a great deal for you!

Example: A seller agrees to finance $100,000 over 20 years. 20 years a time 12 months per year is 240 months payments. $100,000 divided by 240 equals’ payments of $417 per month.

Type 3: Ask interest-only payments, with the principal to be paid with a “balloon” (also called “bullet”) mortgage in 5 years.

Example: You can offer 8% interest on $100,000 of owner financing. Multiply $100,000 by .08 and get $8,000 by 12 and get a monthly payment of $667 per month. You then must pay off the entire principal balance at the end of the fifth year. You would typically do this by either do this by either selling the property or refinancing it.

Type 4: If the owner insists on getting principal and interest, then you would structure the deal accordingly. Owner financing $100,000, 8% interest, amortized over twenty years with a five-year balloon.

Your principal and interest payment is amortized over a long period-twenty five years because the longer you make the amortization period, the lower the monthly principal and interest will be.

Owner financing is a great strategy to purchase real estate, whether it’s commercial, multi-family apartment properties or single homes. Ask and negotiate with the seller and you would be surprised how easy it may be to start your property portfolio today.

By: Marcus Mavakala

About the Author:
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Marcus Mavakala is the CEO of The Greenhill Group, LLC. ([http://www.GreenhillFunding.com]). He has years of extensive experience in the real estate industry as an investment and finance counselor. Marcus is dedicated to helping individual investors who are looking to increase their net worth to build wealth with real estate acquisitions. The Greenhill Group is exclusively focused in the California real estate market and also serves the needs of real estate investors nationwide. The Greenhill Group goals are to build strong, everlasting relationship with investors for lifetime and create continuing customer satisfaction. For more information, contact Marcus at (877) 679-4455, or by visiting the website [http://www.GreenhillFunding.com].

(c) The Greenhill Group, LLC. All Rights Reserved Worldwide.