13 September 2021
The value of a Sectional Title Levy...
We are often challenged at AGM's about the amount of levy being paid compared to complexes in the near vicinity or that are similar in design... just today I was asked by a Real Estate Agent, "how is the levy made up?"
Firstly, if you are in the Real Estate industry, and are selling and renting in any complex, you should know the differences between the types of complexes and be able to obtain the information you require from a set of financials.
Secondly, people need to realise what they get for their money in terms of a sectional title levy.
To do away with the obvious differences between a freestanding home and an apartment, lets compare an upmarket apartment complex with a middle class home in a middle class neighbourhood and lets assume the erf size at a moderate 750m2.
The purchase price is approximately the same so the bond repayments are similar.
The apartment complex is likely to have common amenities such as some form of security, garden and cleaning services and provisions for maintenance... not to mention that most of the time you get the convenience of a competent management company and good group of trustees who make sure everything is sorted for you....
The freestanding home probably employs their own gardener once or twice a week at R250-R300 per day. So approximately R2200 per month goes to just keeping your property tidy. Maintenance is a highly underrated expense.... assume both have a plastered and painted exterior. The freestanding homeowner should bank on R800 per month saving over a 7 year period for a complete paint and redecoration project on their home.
The average levy across our Sectional Title book is approximately R1300 on the low side and R2200 on the high side so sectional title living holds a tremendous amount of value which often gets overlooked. Contact us for a fully managed solution