Tips for buying a sectional title property | Fin24
 
  • Mboweni on State Capture

    The new finance minister has described state capture as a 'great public sector heist'

  • Kganyago on Populism

    The central bank head says SA must learn economic lessons from Venezuela and Zimbabwe.

  • Up in the Air

    Uber Air could see SA shoppers flying to malls via skyports, says a company executive.

Loading...

Tips for buying a sectional title property

Aug 04 2015 15:28

Cape Town - When buying a sectional title property, an owner invests in a community rather than just acquiring a property, according to the latest Absa Homeowners Insights survey.

The survey provides some tips for buying a sectional title property:

- The common properties - for instance, swimming pools, club house and tennis courts - as well as the outside of the buildings are typically the responsibility of the body corporate to manage;

- Levies are collected, which usually cover the cost of the managing agent, the maintenance of the common property, insurance and sometimes water and electricity;

- Sectional title properties often have much better security measures in place than full title properties. By sharing costs among the owners, complexes can appoint a better quality security company;

- The average selling price for sectional title units are still less expensive than full title properties. Though the characteristics do not allow for an easy like-for-like comparison, it is, however, much cheaper to maintain and run a sectional title unit due to the sharing of costs for maintaining communal property;

- A smaller property size could enhance the need for amenities close to the property, and encourage entertainment outside the home;

- Developers have realised the growing demand for this type of property and larger complexes could be more profitable to develop than individual free standing units;

- There are complexities that come with the sectional title community. Body Corporates determine, set and enforce conduct and management rules specific to the complex.. Rules and regulations may be instituted or changed and it may not suit every individual owner;

- Investing in a sectional title complex could expose you to the responsibility for the overall health of the body corporate and other tenants potentially not paying;

- To renovate, expand or alter the exterior of your property, the body corporate will likely require you to obtain their approval, and they may restrict you from doing so;

- Sectional title scheme ownership basically means that you own a part of the "scheme". Based on "part ownership", owners of sectional title units are jointly liable for any and all debt of the body corporate. Should any owners not pay their levies, other owners are liable;

- The majority of sectional title complexes, especially apartments, do not allow owners to have pets;

- The close proximity of your neighbours does not bode well for those who enjoy peace and quiet.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

absa  |  money  |  property
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The Data Market Inquiry:

Previous results · Suggest a vote

Loading...