6 Quick Tips When Buying a Home in an Estate
Recent trends have shown that home buyers are leaning towards
purchasing homes in gated developments and estates.
There are an estimated 6,500 closed lifestyle communities in
South Africa at the moment, containing about 350,000 homes and
these numbers are constantly rising. These homes are usually 3
times more expensive than a free-standing home, so home buyers
often pay higher premiums per month, which doesn’t seem to bother
them considering what they are paying for.
However, buying in an estate is not the same as buying a home.
Here are a few tips to consider.
No.1 – Lifestyle
When you buy a home in an estate you are investing in a lifestyle.
Obviously, it is important that you choose an estate that suits your
lifestyle.
It should also provide the necessary school, sports and security
provisions that are important to you.
Having said that, you should not underestimate or discount things
like clubhouses, restaurant or wellness spa that might contribute
to the enjoyment of the estate.
No.2 – Management
If you are in a position to do so, try picking an estate that is
already established, organized and fully operational.
New estates often have teething problems that need to be sorted
out before it can be totally functional. This is not how you want
to start your new journey after buying a home.
If you are unable to purchase or find an established estate and you
are investing in a new estate, try being as involved as possible.
Ensure that you contribute in a positive way so that you can make
sure that the estate is going forward instead of degrading.
No.3 – Home Owners Association
Buying in a well-maintained and established estate does not
automatically mean that the management thereof is always 100% perfect.
It is always a good idea to check out the Home Owners Association
(HOA). It should be a fairly strong board and it should have an
excellent track record. Their financial should also be immaculate
and transparent.
The absence of all these factors could make you change your mind
and a good investment might lose its value faster than you might
think.
Remember, this is the body that will make decisions in the estate
that will affect your lifestyle.
No.4 – Rules
When buying a home in an estate, there are going to be rules which
you will have to adhere to. It is not like a house where you are the
only person living on the property; there are neighbors pretty close
to you and you need to take them into consideration as well.
An estate can only function properly if you are on the same page as
everyone else.
No.5 – Levies
Find out what the monthly levy is and what it is going to cover.
Remember that you are going to have to pay your own municipal rates,
homeowner’s insurance, and maintenance costs as well as your estate
levies.
No.6 – Timing
Commit to a purchase as soon as possible. Estate property sells at a
premium price, but the value increases quite quickly as well, which is
why waiting for the right price might be a futile exercise.
Even if you purchase a unit on a smaller property, you will already
have a foot in the door of the right market.
In due time, you can ‘buy up’. If you leave it for too long to decide,
you might lose out.
SOURCE: IMMOAFRICA
