Sectional title or freehold ownership: Which is for you?

Sectional title living and freehold properties have one thing in common: they both have a lot to offer their owners. But first things first - what do these terms mean? In a nutshell, a freehold property typically describes a stand-alone house, which can be on a municipal road or in a complex. If it is in a complex, it is also known as a cluster home. When you buy a freehold property or cluster home, you own the house and the land that it is built on, as well as the garden and pool if applicable - it's all yours. A sectional title, on the other hand, refers to a section within a block of flats or a complex. While you buy your unit, you have rights to exclusive use areas such as parking bays, driveways and/or gardens if applicable, and these are contained in the body corporate rules or on the title deed. The common areas such as access roads and communal pools or park areas are communally owned by everyone who has invested in that sectional title scheme.

A glimpse over the fence into the advantages of freehold living

If your property is a stand-alone house on a municipal road, you are responsible for your own finances and you have the freedom of not having to worry about whether or not the finances of the body corporate are being well managed. Owning a stand-alone house can also be simpler than being part of a body corporate, and there are no annual general meetings to attend or body corporate rules to adhere to. You get to manage your property the way you see fit, without ever having to worry about the possibility of rules being changed by a majority vote. You will never be told what colour the outside of your house has to be painted, and you can extend the home as you like or put in a pool without needing to obtain permission from a body corporate.

Cluster living involves a different type of freehold property ownership, and it offers the best of both worlds. Owners of cluster homes reap all the advantages of owning the land, as well as the benefits of community living. When you buy into a cluster development, you become a member of a homeowners' association and you pay a homeowners' levy. This levy is used to look after common areas and roads and to pay for security measures. As is the case with a house, you as the owner are responsible for maintaining the interior and exterior of your home, as well as the garden and walls. There could be some restrictions in terms of exterior paint colour, depending on the homeowners' association rules.

Everything families love about life in sectional title properties

One of the first advantages that most families mention about their life within a sectional title property is security. While living in a block of flats or in a complex does not mean that you will never be a victim of crime, there is a lot to be said for the old adage of "safety in numbers". Complexes often have electric fences, security guards or other security measures in place for peace of mind and a secure way of life.

When you live in a complex or a block of flats, you pay a set monthly levy, and this covers all the costs of routine property maintenance. While a special levy may occasionally be called for, this is the exception rather than the rule. On the other hand, if you live in a freehold property, expenses can be less predictable. Also, freehold living can be more expensive than life in a sectional title home, because you are solely responsible for the maintenance of the property. In a sectional title complex, costs such as pool and garden maintenance are paid using the monthly levies that are paid by all residents, so the costs get shared.

Many residents of complexes and blocks of flats find that they enjoy a far greater sense of community than those who live in freehold houses. Children can befriend other residents' children, and young and old alike become part of a close-knit community.

Whether you're looking to buy a freehold house or a property in a sectional title scheme, your Jawitz #RealPartner will help you find the home that's right for you. Contact us today and let's start your next real estate adventure.