Real Estate Advice

Advice to buyers


Location
It’s a cliché, but it’s all about ‘location, location, location’. It’s a critical factor in understanding the potential of the property. Is the wider area being regenerated? Is the necessary infrastructure in place already? How close are the appropriate transport links, shops, restaurants, parks and schools? You can find out the proximity of local amenities to a particular development by conducting a property search local updated maps.

Know your market
If you plan to let or sell the property on completion, you should establish the target market for the type of property you’re planning to buy. Discuss this with local estate agents to understand where the demand is likely to be coming from. It’s also sensible to establish how many other units have been sold to buyers planning to let them out upon completion, as your property could end up competing with a large number of other properties in the same development.

Price
You should also try and see what similar properties in the area are being sold or let for. This will give you an indication of the possible return you could expect to see when you come to sell or let the property. Be aware, however, that the market can change a lot over a 12-month period, so you can’t always be certain that you will eventually achieve the prices being realised in the current market. You can either view the latest sold prices in Zimbabwe, or you can search for property to buy or property to rent in the local area now to see what asking prices similar properties are being marketed at. In some cases, the developer will guarantee a certain value of rental yield in the first year or two. Find out what’s on offer.

Is there a large supply of local new-build properties in existence (or coming to market soon)? If so, there is a danger that the market could become saturated if lots of developments reach completion around the same time. Have a look around the area and check with local estate agents for any other developments already planned or expected in the near future.

The property
Look at the details, dimensions and specifications of the property. If you’re looking to sell or let upon completion, will the property be suitable for the target market? A family will have slightly different requirements from a single professional, for instance. Make sure the property is suitable for the market you are hoping to attract, whether buyers or tenants. Also, find out if there are likely to be any additional charges associated with the development, such as service charges.

The aspect and views from the property are obviously more difficult to assess on a property that has yet to be built. However, you shouldn’t rely on computer generated images (CGIs) or the developer’s sales pitch alone. Try and visit the actual development plot and check out where the roads and, if applicable, the railway lines are, and work out where your property will be and what the views are likely to be like from the finished product.

While not always possible, try to secure a property with one of the best positions, as you’ll be rewarded with better rental yields and capital appreciation. Try to find a property with a unique selling point, such as a nice view, parking, or access to outside space.



Steps to buying off-plan
The following points illustrate the steps you are likely to need to follow when buying a property off-plan:

Find the right development in the right location
Arrange the appropriate finance for the purchase well in advance
Reserve your chosen property and pay the reservation fees (usually between £500 and £1,000)
Arrange a surveyor’s valuation of the property, which your mortgage lender will require after an offer has been made
Make sure all the mortgage paperwork is complete and ready to go
Exchange legal contracts and pay the deposit (usually between 5% and 10%)
Conduct a snagging survey about two weeks before final completion and check the property for any defects
Be ready for completion (there are usually two dates, a ‘short stop’ and a ‘long stop’ – the former is the date by which the developers expect to have finished the building works, the latter is the date by which they must have done so).

Assess the property market
Research local property prices to find out how the market has performed over the last few months and try to gauge the direction of prices. Get up to speed by reading the latest Primelocation.com House Price Index for the latest property market trends.

Buying off-plan in a market where prices are depreciating can put your investment at a greater risk. However, get it right and buying a property off-plan can be extremely rewarding.



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