Buying a new property can be exciting and overwhelming at the same time, especially if you're a new buyer. However, there is no compulsion to rush through property development, as it is one of the most significant investments you will make. The property industry is booming, and everyone wants a piece of the pie. Therefore, we have compiled a list of the essential questions you should ask before purchasing a development property.
1. Have development rights already been granted for this development?
The first question you’d ask is whether or not development rights have been granted to the property. Usually, the rights to houses differ from those permitted to flats, maisonettes, and other buildings. Moreover, the development rights for commercial properties differ significantly.
Some areas can have more restricted property development rights, such as:
- A National Park
- A World Heritage Site
- An Area of Exceptional Natural Beauty
- A Conservative Area
2. Have the applicable approvals been obtained for this development?
Property development always requires getting prior approvals from the relevant authorities and institutions. Therefore, it is crucial to ask if the property in question has also been given the green light. Here are some of the most necessary approvals required for starting the development of the property;
Planning Permission
You need planning permission per the National Building Regulations and Buildings Standards Act. Here's the process:
- The applications are first submitted to the Town Planning Departments, where they're scrutinised for compliance with the zoning.
- After that, they go to the Building Inspectorate, where building specifications, energy efficiency, disability access, and fire safety are checked.
3. Have the major lending institutions granted pre-approval for end-user finance for the new development?
It is important to have reputable financial institutions backing the project through pre-approvals. If there are no financial guarantees, the work will be in the middle of nowhere and lead to even more losses.
4. How long have you been developing for?
Perform a background check on the developer by asking them how long they have been in this business. It is crucial because you need to ensure they have a good track record of studying the projects properly and delivering them within the given timeframe.
5. Do you have past work you can show me?
This question ties to the previous one. It is part of a thorough background check to ask the developer to show you some of the projects they have previously finished. You can visit those projects and see the quality of their work yourself.
6. How many active projects do you currently have?
Ask how many property development projects they're currently running to know if they can manage yours. Moreover, it'll also show you if people trust them or not. You can visit the construction sites and witness their professionalism, quality of work, materials, and first hand.
7. How long does the development process take?
Nobody has an unlimited amount of time, so make sure you ask your developer about a completion timeframe for the project. A builder usually gives a deadline with two months' leeway, which is revised as the building gets closer to completion.
8. Do you have testimonials or real client reviews I can check out?
Check what other people say about them by asking them for reviews they have received. If they have a website, visit it and read its reviews. You can also see their social media pages or explore other third-party websites for a fair assessment.
9. Why should I use a project/development manager?
You should use a project manager for property development for the following reasons:
- Market research
- Experience and knowledge
- Increased value
- Risk mitigation
- Time management
- Watertight documentation
10. What kind of risks are involved with my project?
Ask the developer about the potential risks involved in the development project. Once you know them, you can take the necessary measures to minimise their effects or eliminate them. Usually, the following risks are involved in development projects:
- Time overruns
- Cost overruns
- Builder going bust
- Baseless numbers
11. What do I get with my newly built home?
It is better to be clear about what your developer can provide you at the end of the project. The kind of home they build depends upon their expertise and the agreement. Usually, you get the following things at the end of the project:
- The structure of the house.
- Finishing & fixtures, such as flooring, appliances, etc.
- Plumbing & electrical systems.
- Landscaping
- Warranty
12. What is included with the new home warranty?
A new home warranty usually covers the following:
- Concrete foundations & floors
- Heating & cooling
- Waterproofing
- Doors & windows
- Carpentry
- Electrical work & plumbing
- Septic system
- House structure
- Geyser
- Stove
13. How many other properties have been sold?
Ask the developer how many other properties they have sold until now. It'll give you an idea about the quality of their work and whether people trust them. More importantly, it'll give you a good understanding of the prices they charge.
14. What help is available for purchasing a property?
Buying property developments is a significant decision, so you must seek guidance to make the best possible decisions. Help is usually available in the form of financial & legal advice. Meet a certified financial planner and a credible lawyer to understand the process thoroughly.
15. What are the proposed facilities?
Ask the property developer about the facilities they can provide. These usually include;
- Amenities like a swimming pool.
- Smart home technology
- Security & surveillance system
16. Will there be extra charges, and if so, what are they?
Any extra charges that show up later can disturb your finances and leave you in trouble. Therefore, ask the property developer if they have any extra charges, such as service charges, documentation, etc. It'll help you have a clear idea of what's coming ahead.
17. What are the financing options?
Check if any financing options are available for you to make the whole task much easier. Look into some shared ownership schemes that significantly reduce each owner's charges.
18. What is the property reservation process?
Make sure you reserve the property by thoroughly following the reservation process after asking the developer about it. It'll put your stamp on the building for a given period, and the developer cannot sell it to anyone except you, during that period.
19. What after-sales service do they offer?
This is an important question that many people, as developers, need to pay more attention to after-sale services such as property management, service facilities, and marketing support for reselling the property.
These are some of the most important property development questions that should be on your list if you're planning to purchase property to develop. If you're looking for a quality property developer in Gauteng, look no further than UG Homes. We have built an exceptional reputation thanks to our 50+ years of experience, commitment to our work, and qualified staff.
We serve our clients through the sale and rentals of property and will continue to do so. If you have any queries, reach out to us, and we'll respond promptly.