4 property ownership types you should know about
Are you interested in property ownership? Besides the stress of finding your dream home, you’ll also need to decide which type of property you want to own. From freehold to sectional title, you have a range of different options to consider. Check out GotProperty to find an affordable house that you’ll love forever.
Full-title property ownership
Restrictions on how you use your property are a hassle. If you want the freedom to make alterations to your home however you please, then this is the right type of property for you.
You’ll be able to make renovations to your house as the need arises, build new rooms as your family expands, and adjust your home to suit your personal taste.
The only limitations you face when you own a full-title property is your local council regulations. You’ll be expected to pay rates and taxes, which depend on the value of your property. Besides having the freedom to make changes to the property, you’ll also have the benefit of holding the title deed.
Have you spotted a freehold property for sale and wondered what it means? This type of property ownership is the same as a full-title property.
Are you buying a home in a complex or development? It’s likely that your unit will fall under sectional title property ownership. Common sectional title properties include the following:
- Mini subtype units
- Semi-detached units
- Duet units
When you own this type of property, you’ll be responsible for paying your rates and taxes as well as the insurance for your unit. Other expenses include the utility bill for your unit as well as the expenses associated with your personal garden.
The advantage of this type of arrangement is that there’s usually common property, which you can make use of. This may include clubhouses, swimming pools, and beautiful communal gardens.
You’ll only own your unit, but you’ll be able to use the amenities along with the other unit owners. The body corporate has ownership of the common areas and the land your unit is built on.
You’ll be responsible for paying a levy to the body corporate if you own a sectional-title unit. Check the rules and regulations that the body corporate has implemented before you decide to buy. You’ll be expected to adhere to these rules so you’ll need to make sure that you can live by them before you move in.
When you first consider it, a leasehold property may not seem like the best idea. However, you’ll still be able to enjoy the property for the duration of your lease. With this type of property ownership, you can make renovations or additions to the buildings during the lease period. These types of properties are typically owned by the government. The downside is that you won’t have full ownership.
Paying for a long-term lease gives you rights to the land for an extended period of time. Your lease could be anything from 10 to 99 years. After the lease period has ended, you may choose to renew the lease or there may be an option to buy the land.
The option of renewal is common for pieces of land that are owned by the government. For both the landowners and your security, the long-term lease will be registered and endorsed in the Deeds Registry. This process ensures that both parties know their rights and responsibilities with regards to the lease.
Understanding the different types of property ownership is important, but ultimately the type of property that you buy is a choice you’ll need to make for yourself.
Buying a home is a big investment, so you’ll need to consider your options carefully. Besides the type of ownership, you’ll also need to take your budget and personal requirements into account. Looking for your dream home? Find exquisite houses for sale on GotProperty today.