Apartments and townhouses are usually sold under sectional title ownership. Such a purchase will mean buying into a kind of communal ownership. You buy more than just your own living space and you must abide by the decisions made by the majority of unit holders. You will become part of the complex's governing body, which takes the form of a so-called "Body Corporate" which entitles you to a say in all decisions that influence the complex or your ownership.
It is usually obligatory to pay a monthly levy in order to make it possible for Trustees to properly manage and maintain the complex. This levy is a fixed amount but it is not written in stone and may be increased from time to time.
"You have less privacy and less freedom to alter your property as you must abide by the rules of the complex."
As with any important investment it is prudent to investigate what you are in fact investing in. Verify the financial position of the complex. Without a firm financial foothold it is probable that several levy hikes may be needed to cover outstanding debts, costing you much more than you initially budgeted for. If a special levy is needed to meet future costs such, as the reparation of an old building, find out when this is likely to be payable and what it will entail. Lastly make sure you know what the current amount of the monthly levy is and when it was last increased.
There is a downside to buying sectional title. You have less privacy and less freedom to alter your property as you must abide by the rules of the complex. Though you do have a say-so, the trustees managing the complex may not have sufficient experience in the real estate business to optimally see to the needs of owners.
There is a downside to buying sectional title. You have less privacy and less freedom to alter your property as you must abide by the rules of the complex. Though you do have a say-so, the trustees managing the complex may not have sufficient experience in the real estate business to optimally see to the needs of owners.
