You can now ‘trade in’ your apartment in South Africa – this is how it works

Following the same model as premium vehicles, Balwin Properties is launching a new ‘trade-in’ service for properties in South Africa – though it is restricted to sectional titles within the group’s stable.

The group has launched a new service, Balwin Approved, which offers a trade-in programme for any of its homeowners in Gauteng and KwaZulu-Natal.

Balwin Chief Executive, Steve Brookes said that the concept is first of its kind and will allow owners to trade in their current Balwin apartment for a new Balwin apartment.

“Premium motor vehicle brands have been doing this for years, where you can trade in your good quality car for a later model or buy a vehicle with peace of mind because of the manufacturer’s multipoint inspection and backing.

“Balwin Approved works on a similar basis, backed by our trusted brand, in what I believe is a first-of-its-kind concept for sectional title homes.”

The pilot developments are:

• Izinga Eco Estate, a Signature development in uMhlanga;
• Greencreek, a Green brand development in Tshwane East;
• The Blyde, a Classic brand development featuring a Crystal Lagoon, east of Tshwane.

The pilot will be expanded to more properties in January, the group said.

How it works

1. Balwin will inspect, evaluate, and certify an apartment as Balwin Approved.
2. It will then make an offer to purchase to the homeowner, subject to the apartment being on-sold within 90 days from the offer date.
3. All costs, such as transfer duties and fees, as well as refurbishment costs, are included in the offer, allowing for a hassle-free and seamless process.
4. Balwin Mortgages will further assist the homeowner with bond approvals on the new apartment.
5. On the successful conclusion of the finance transaction, Balwin’s conveyancers will settle the existing bond and register the new bond in the name of the homeowner.

“Prospective buyers of Balwin Approved apartments have the assurance of a pre-inspected apartment that is free of defects, all the necessary compliance certificates, and the necessary refurbishments associated with normal use taken care of before moving in,” Brookes said.

Having developed more than 23,000 apartments according to EDGE (Excellence in Design for Greater Efficiency) standards, and with over 15,000 apartments certified as EDGE Advanced, Balwin plans on leveraging its Green Bonds to obtain preferential interest rates for all homeowners.

“We pioneered Green Bonds to the benefit of our clients, with prospective owners qualifying for a bond rate discount with most of the major financial institutions of up to 0.75% as a result of our sustainable building practices,” said Brookes

To protect its cashflow, Balwin will not hold the traded apartments as stock, as all trade-in transactions are subject to the trade-in apartment being sold within a 90-day window, it said.

The initial Balwin Approved programme is open to any Balwin apartment owner in Gauteng and KwaZulu-Natal on selected developments, with plans to expand the offering to the Western Cape over time.

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