Sectional Title Property vs Freehold Property
When you’re thinking of investing in property, it’s important to understand the legalities associated with each type of ownership. In this blog post, we discuss sectional title property and freehold property as well as their differences and advantages. To start your journey toward finding the best property for you, visit GotProperty.
Definitions and advantages
In order to decide what type of property best meets your requirements, you need to have a proper understanding of the different terms.
When you buy a freehold property, you get full ownership rights which means that both the building and the land belong to you. Free-standing buildings, as well as cluster houses, can fall under this category. You can also buy small holdings which are defined as free-standing property.
Sectional Title Property
Sectional title property refers to the individual ownership of units within a complex which means that a section of the common property belongs to you.
Common types of sectional title properties include townhouses and flats. These developments are overseen by a body corporate, which refers to the people who own units in the complex.
The body corporate is tasked with overseeing the finances and these duties can be allocated to a managing agent. The people who live in the complex are required to follow the BC rules.
Advantages of sectional title property
There are numerous advantages to owning sectional title property, which is why it has grown in popularity over the years.
With the high rate of crime in South Africa, many property owners are seeking increased levels of safety that are associated with living in a complex. Communal living offers you more security than a free-standing house does. Many complexes also invest in safety measures, such as securing the perimeter as well as the entrance of the property. The cost of these security measures is shared among the unit owners.
Sectional title property is typically accompanied by a levy, which is a fixed monthly cost. These levies include insurance premiums and security as well as upkeep of the common areas. The expenses of maintaining pools, recreational areas, and shared gardens are split between all the unit owners.
Sectional title property is typically more cost effective than freehold property. Staying in a complex also gives you the opportunity to experience community living.
Before you invest in this type of property, make sure that you read the body corporate rules and review their financial statements. Inquire about the levies to make sure that you can afford this monthly payment. The levies that are associated with complex living depend on the services and amenities that are offered.
Complexes with elaborate recreational areas and high levels security often come with higher monthly levies. Sectional title property offers you value-for-money as well as higher levels of safety. Its affordability has resulted in many people choosing this type of property over freehold property.
Advantages of freehold property
When you invest in a freehold property, you get more independence than you do with a sectional title property. This means that you have complete control of your property and you can a make decision without having to comply with management rules.
In a complex, you’ll have to follow the body corporate rules and these guidelines can be changed by a majority vote. Owning a freehold property is a simpler option as the legalities that accompany sectional title properties are complex.
When you purchase a freestanding house, you’ll have the freedom to choose your own pets without any restrictions. Many complexes have restrictions on pets and some are not child-friendly. Families often choose to stay in freehold properties where they have more freedom.
Now that you know more about the pros and cons of freehold and sectional title property, you can make an informed decision about which option best meets your requirements. The type of property you decide to invest in will depend on your budget as well as your personal preferences. For the best property for sale, visit GotPropety.