Why sectional-title properties are dominating the real estate market

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Driven by rapid urbanisation, the growing need for conveniently located urban accommodation, and the appeal of affordability and low-maintenance living, these developments are reshaping the way South Africans buy and invest in property. As lifestyle priorities evolve, sectional-title living is fast becoming the preferred choice for first-time buyers, young professionals, and downsizers alike.

Developers are responding by increasing the stock of apartments, townhouses, and clusters within secure complexes. Many of these developments now offer shared amenities such as gardens, pools, sports and recreations, and advanced security, which individual homeowners may not otherwise have access to, he says.

For many buyers, a sectional title is the most financially accessible way to enter the property market, as costs such as maintenance and insurance are shared through a monthly levy. These properties are also highly sought-after for rentals, and offer excellent investment value.

Seeff highlights key differences when purchasing sectional title compared to freehold homes, as follows:

• Buying into a community. In a sectional scheme, you own your unit, but all common areas such as the building's exterior, gardens, and communal facilities are co-owned by all the property owners. This is different from a freehold property, where you own the land and everything on it.
• The Body Corporate manages the sectional scheme. Every owner is automatically part of a Body Corporate, a legal entity responsible for managing the scheme. A Board of Trustees is elected to manage the day-to-day affairs, including maintenance, rules, and levies.
• Costs are shared. Instead of paying for all maintenance yourself, you pay a monthly levy to the Body Corporate. This covers shared expenses such as security, insurance, and garden services. Special levies may be raised from time to time to fund major repainting or maintenance projects.
• More life, less maintenance. Living in a sectional-title unit means less maintenance and exterior painting as these are taken care of by the Body Corporate as a shared responsibility among all owners. You get to enjoy a secure, lock-up-and-go lifestyle which means more time for yourself.
• Complex rules to live by. When purchasing a unit, you automatically agree to abide by the Body Corporate's conduct rules. These govern various aspects, from noise, pet ownership, parking and use of the communal property to what colour you can paint your front door or what you are permitted to display in your garden.
• When purchasing a sectional-title unit. Ensure you check out the scheme's conduct rules and financial statements so that you know exactly what you are in for and invest in a well-managed complex. Mortgage lenders often view sectional-title properties as a less risky investment, but it is important to understand the rules that you will need to live by.
• When selling your unit. When it is time to sell, you must ensure that all your levies, including any special levies, are paid in full before the transfer can proceed. The Body Corporate will issue a Levy Clearance Certificate, which is essential for the sale to go through.
• Renting out your unit. If you plan to rent out your unit, be aware that you remain responsible for ensuring your tenants have a copy of the rules and comply with them. If a tenant causes a problem, the Body Corporate will contact the owner, not the tenant, to handle and clear up the situation.
• Short-term rentals and Airbnb. Prospective purchasers should check whether the rules pertaining to the management of the complex permit short-term letting as these are often not feasible, and it is important to avoid any potential misunderstandings or problems.