If you’re a property buyer navigating the real estate market on Cape Town’s sought-after Atlantic Seaboard, knowing your options when choosing a new home is pivotal. Whether building from scratch, investing in a new development, or buying an existing property, it’s essential to know the benefits and drawbacks of each home-buying option.

Property expert Sandy Walsh, General Manager of Property.CoZa Prestige in Mouille Point unpacks the key points to consider about purchasing options. She says being informed will make your home search in Cape Town’s Atlantic Seaboard much easier. “As one of the most popular areas in Cape Town, the Atlantic Seaboard incorporates several suburbs, including Mouille Point, Green Point, Sea Point, Bantry Bay, Clifton, Camps Bay, Llandudno and Hout Bay, explains Walsh.”

1. BUYING OFF-PLAN IN A NEW DEVELOPMENT

While many areas of the Atlantic Seaboard are already established, Walsh comments there are a few new residential property developments that buyers could consider. Examples in Sea Point include The Ivory, a luxury micro-living apartment development launched at R1 450 000 for 25²m-sized units, and One46onM urban apartments, where prices range from R1 500 000 up to R5 000 000.

Benefits:

• Savings Beyond the Horizon: Acquiring a property before construction offers affordability, with deposits typically lower than those for existing homes. Plus, bond payments will be delayed until construction concludes.
• Customised Aesthetics: Enjoy finishes reflecting your style, not a previous owner’s taste.
  This is your canvas, and with developers often incorporating the latest architectural trends, energy-efficient measures, and modern amenities, you can use this to your advantage.
• Cost-Efficient Transfers: New developments can save significant transfer costs, particularly on high-value properties in the Atlantic Seaboard. VAT amounts are also reduced as properties fall under the development company’s tax umbrella.

Drawbacks:

• Trust the Vision: Relying on architectural plans and developer promises demands a leap of faith. Delays and uncertainties may overshadow your dream home journey.
• Deposit Dilemma: Although deposits are lower, the initial financial commitment is vital.
• It’s essential to plan and budget correctly for ensuing costs during construction.
• Selection Struggles: Despite the promise of variety, securing your preferred unit is not guaranteed. Off-plan purchases require a discerning eye and a dash of luck.

“It’s best to find a real estate agent you feel comfortable working with – that way, you’ll have help to find your perfect property and be guided through the buying process,” advises Walsh.

2. BUYING AN EXISTING PROPERTY

“Traditionally, buying an existing house is the common choice for buyers,’ says Walsh, “and if you require bond finance, make sure that you have been pre-qualified with a reputable bond originator to avoid disappointment in the fast-paced Cape Town market.”

Walsh suggests good residential property options in the Atlantic Seaboard: Green Point, Sea Point, Fresnaye, and Bantry Bay. “Prices range widely – from a 60²m one-bed apartment in Green Point for R2 500 000 to a penthouse in Bantry Bay for R29 800 000,” she comments.

Benefits:

• Convenience: Buying an existing property allows swift transactions, especially if you’ve got pre-approval from your bank. Move-in timelines are shorter, and the convenience factor reigns supreme.
• Inherited appeal: Take possession sooner, benefit from an established neighbourhood, and sidestep potential teething problems.
• Urgency is vital: If you’re looking for a fast, straightforward process, the urgency-driven nature of existing property transactions should suit you.

Drawbacks:

• Unseen obstacles: Convenience might come at the cost of inheriting issues the previous owner left unresolved. Be prepared to tackle unforeseen problems.
• Customisation restrictions: Your dream home might need a few compromises. Existing properties may lack the personalised or modern features available in new builds.
• Dependence on market availability: Your ideal home might not be readily available. Relying on existing stock might involve settling for less than your dream home.

3. BUILDING FROM SCRATCH

Benefits:

• Tailored perfection: Building from scratch ensures your dream becomes a reality.
  Customise your home to meet the latest environmental and energy efficiency standards.
• Long-term value: Although upfront costs are higher, a new home attracts higher resale values. Buyers find reduced maintenance needs and enhanced energy efficiency appealing.
• Location mastery: Handpick your ideal area to align with your lifestyle, preferences and budget. This option empowers you to control your property destiny.

Drawbacks:

• Budgeting challenges: Building a new home demands meticulous financial planning. Unforeseen costs and paperwork can disrupt your budgetary bliss.
• Rigorous research: Finding the right architect and builder and obtaining municipal approval involves comprehensive research, time and attention to detail.
• Building a new home is not for the impatient. The construction timeline may test your patience, and delays are not uncommon.

“With each option bringing its unique plusses and challenges, your personal preferences, timelines, and budget considerations will be pivotal in steering you towards the perfect property choice. Remember, a real estate agent can guide you and simplify purchasing, ” Walsh concludes.

To find out more about Property.CoZa Prestige please follow this link.