Written by Nishta Jhurree
Thinking of venturing on the property market for the first time can be daunting. Despite the stress, commitment and planning it can induce, this can also be a very exciting time. The property market in Mauritius has opened its doors to welcome first-time buyers with open arms which can make this transaction more inviting and comfortable.
Both the public and the private sectors have come up with several programs that offer assistance to first-time buyers. They come in various forms ranging from low down-payment and split payment facilities, exemptions from certain fees and last but not least, competitive property prices.
Exemption from Registration Duty
Since 1st September 2016, the Government has encouraged first-time buyers by granting a full exemption from registration duty on:
· The first MUR 2.5 million on bare land to build a house
· The purchase of an existing house or apartment of up to MUR 5 million
· No registration duty is payable on a secure housing loan for an amount not exceeding MUR 2.5 million
This exemption does not apply to a property on a leasehold or within an IRS, RES, PDS or HIS.
Availability of Modern & Affordable Properties
The proliferation of apartments in Mauritius has opened many enticing opportunities for first-time buyers who want to depart the family house and invest in their very first home. Modern, trendy, technologically smart and secured apartments, just like they dream of, are available on the market at affordable prices for them to take advantage of. Whether they like to wind through the urban life or prefer the more relaxed coastal beaches of the Island, Mayfair Apartments has something to offer
The trend for off-plan acquisitions has evolved very rapidly in Mauritius. It involves committing to the purchase of a residential property before its completion. Such an investment incredibly viable for first-time buyers as they come with many advantages; some of the main ones being:
· Purchase prices are significantly lower than average
· Strong capital growth can be attained
· Ability to re-sell at a profit before completion
· Small deposits and staged payments
For a more detailed article on off-plan buying please read: https://sunsetboulevard.mu/off-plan-buying-is-the-way-forward/
VEFA & GFA Schemes
Off-plans projects come with forms of guarantees that Promoters offer to Buyers via the banks. With schemes like the VEFA (Vente en l’état future d’achèvement) and the GFA (French initials of Financial Guarantee of Completion), which is the highest in the rank of its kind, first-time buyers are totally safe and secured with their very first investment. This is because the bank guarantees the full completion of the project should, for any reason, the developer fails to do so and is unable to complete construction.
A More Lenient Schedule of Payments
Such schemes also come with a more flexible payment schedule which makes it more attractive for first-time buyers, especially those who need to borrow home loans from the banks. The VEFA payment schedule is strictly governed by law and payments made are capped at certain stages of the build process which ensures your money is managed and payments are not made in excess of the works completed.
Mayfair offers added benefit of staged payments to its buyers whereby the cost of purchase is spread over various payments starting with a minimum deposit to reserve an apartment and the last payment is due when keys are handed over to its rightful owner.
The schedule of payments for a Mayfair property sold under VEFA is as follows:
· Reservation of MUR 50,000 paid to the Notary
· Deposit payable to the Notary minus the reservation amount: 5%
· Upon signing the purchase agreement: 25%
· Upon completion of the foundations: 5%
· Upon completion of ground floor: 15%
· Upon completion of the first floor: 10%
· Upon completion of the second floor: 10%
· Upon completion of the building works: 25%
· On delivery of the keys and handed over: 5%
We, at Sunset Boulevard, aim to accompany young professionals/first-time buyers in their quest of acquiring their first homes by eliminating the stress involved in such buying process and make the whole procedure a pleasant and memorable experience.
We also maintain strong relationships with other professionals where they can find comfort in a reputable notary, surveyor, bank manager, engineer, and architect to help finalise their purchases.
To find out more about our off-plan properties, call us on 5775 7652.