"Many sectional title residential developments offer sound value for money and a well run complex can offer a sound return on investment over the long term," says Herbst. "The fact that residents together contribute to the upkeep of the complex and the maintenance of facilities means that many sectional title developments are able to offer a high standard of living. The ability to share costs such as maintenance, water, insurance, security and garden services keeps the cost of living more affordable."
For the security conscious, sectional title developments are considered secure environments in which to live as many have access control, perimeter electric fences and other security measures in place. Residents value community living, as well as excellent amenities such as clubhouses, restaurants, swimming pools, tennis courts and other facilities, offered by many sectional title developments.
Herbst explains when you purchase a property in a sectional title complex you are buying exclusive ownership of the unit or section that you have purchased. At the same time you become a joint owner of the common property of the development. Depending on the type of property purchased, you may also be entitled to the exclusive use of a garden, parking space and staff quarters. Herbst says sectional title schemes are strongly regulated by the Sectional Titles Act, which covers all aspects of owning this kind of property, affording any would-be buyer a good measure of protection.
Jason Shaw, manager of the Fourways/Dainfern office of Pam Golding Properties, says sectional title unit owners automatically become members of the body corporate when purchasing a property in a sectional title development. There is very often a direct correlation between how well the sectional title scheme as a whole is managed and maintained and the value of your property. It is therefore important that the body corporate and trustees are competent and well-organised.
Any would-be buyer is entitled to examine the books of the scheme to establish whether the development is financially sound and well governed. If it is heavily indebted and struggling to make payments, this would be a cause for concern. "Check whether insurance payments are up to date and that the policy offers proper cover," he advises. "It is also important for you to ascertain whether the financials are correctly audited and budgets are properly drawn up."
"Sectional title schemes tend to be more affordable while offering residents an excellent lifestyle," he concludes. "For these reasons I believe there will be a continued demand for them into the foreseeable future."
