Buying Off-Plan Booms
News > news - 11 Oct 2006

Adrienne Hersch, CEO of Adrienne Hersch Properties reports brisk trade in buying properties off-plan, but advises home owners to do their homework before acquiring their new home or making a property investment.

 

The Gauteng property market has seen solid growth in buying off-plan which is still doing brisk business despite the upward cycle in interest rates according to Adrienne Hersch, Chief Executive Officer of Adrienne Hersch Properties.

 

“Buying properties off-plan remains in firm favour with consumers, but buyers are well advised to do comprehensive research on developments before committing themselves to what will be a significant investment. A good investment in off-plan developments can yield significant returns of as much as 20 to 35% of an increase on the original investment if you’ve done your homework correctly,” says Hersch who explains that buying off-plan simply means investing in property and a new home before it has been built by perusing drawings and architectural plans.

 

Adrienne Hersch Properties has earned a solid reputation for managing and marketing off-plan developments in the Gauteng residential property market because of their ability to deliver value. “We ensure that we work with professional developers and development teams with a solid track record and that we are well supported by established financial institutions,” says Hersch whose business has experience significant growth recently. In just short of ten years Adrienne Hersch Properties has grown from a one-woman-show to a a multi-million rand property business with twelve administrative staff and some sixty agents who serve the north, east and western suburbs of Johannesburg. The company specializes in satisfying the property needs of Johannesburg’s residential buyers and sellers with a strong focus on value and service delivery.

 

Hersch says that the Gauteng property market has reflected a big appetite for off-plan developments in all areas that she trades including the north, west and eastern suburbs of Johannesburg. “This hasn’t yet in anyway been affected by the recent interest rate hike with buyers continuing to show keen interest and developments and with our agents achieving good sales on new developments,” Hersch says. “This is a strong trend with buying off-plan continuing to curry favour with Gauteng property buyers as evidenced by a steady but sure increase in off-plan properties over the past five years or so.”

 

Another benefit of buying off-plan is the affordability of putting down a 10% deposit and the delay in bond repayments which usually only come into effect 18 months to two years after the initial investment in the case of sectional title developments. Hersch explains that Sectional Title Ownership means that the buyer owns their own unit (a section), and in addition is afforded ownership of a undivided share of the land and common property of the complex.  “Sectional title offers home owners an opportunity to save on bond repayments, as payments only become effective after the transfer is complete”.

 

“Always check the credentials of the property development by seeing what other off-plan developments they have done and getting advice and word of mouth recommendation. Reputation is everything when it comes to buying off-plan,” says Hersch.

Loading comments
share this article