New development vs secondhand home: what every property buyer needs to know
A decision whether to buy a new property or a second-hand one requires you to get your ducks in a row.
Image: Freepik
One of the biggest decisions buyers face is whether to invest in a new development or opt for a secondhand home, when purchasing a property.
Last month, the Absa Homeowner Sentiment Index, a barometer of consumer confidence across six key metrics in the country's housing market, showed that consumer confidence in South African real estate soared to the highest level in a decade.
South African consumers were feeling upbeat with their confidence in the future of residential property climbing to 87% in the final quarter of 2024.
This was the highest level recorded in a decade, with the dominance of first-time buyers in the market relative to other segments an ongoing trend.
Sentiment to buy and invest in property returned strong results in Q4 2024, while confidence to sell surpassed the 50% mark after trailing below this midpoint for the last two years – good news for the future of property stock levels in the market.
Giovanni Gaggia, CEO of Real Estate Services, says one of the standout advantages of buying in a new development is that the property is brand new-often accompanied by developer guarantees and warranty coverage, offering peace of mind.
'New developments typically feature modern, energy-efficient designs built to the latest standards. They come with developer guarantees that protect your investment and reduce unexpected repair costs,' Gaggia said.
In February, Nondumiso Ncapai, the managing executive at Absa Home Loans, said first-time homebuyers tended to prioritise secure complexes and estates offering amenities like backup power, fibre internet, and water security.
She said greater support for property developers and collaborations with banks and the government would assist in providing environmentally sustainable homes for this market at more affordable prices.
The CEO said another big benefit is security, as new developments are usually designed with safety as a priority - think access-controlled gates, CCTV, electric fencing, and often 24-hour security patrols.
'In most cases, these security features are already included in your monthly levies. That means buyers don't have to factor in additional costs for private security. '
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