Advice on the types of properties that are available on estates in South Africa and how to choose the best property type for you.
Search for a home on any device. Anytime. Anywhere. Private Property. A home for everyone.
Presenter: So with Win a Home kicking off on Afternoon Express, we are transforming ourselves into experts on all things estate living. We will explore various aspects related to buying and living on estates. And today, we launch our series of property advice by discussing the different types of property available on estates in South Africa, and how to choose the right property type for you. Helping us to unpack and understand this better is Lisa Boniface. Welcome.
Lisa Boniface: Hi, Jeannie. Nice to be here today. Thanks for having me.
Presenter: So lovely to have you here. So estate living is obviously the most, I don't know, valued at this stage, I think, in South Africa. I would love to live on estate.
Q: Do you have to live on a free holding property? What kind of options are there?
Lisa Boniface: So Jeannie, that used to be the case, but there has been quite a bit of changes around estate living. So what happened in the past was, you would buy a plot of land and you would build on it, or you would buy a building that already exists. However, there have been some changes. And now, sectional title is incorporated into the estate, which I think is great because it's more affordable, and people who are buying sectional title still benefit from that estate living. The security that comes with it, the pool house [laughter], the golf course. So yeah, it's really great to have sectional title in estate living now.
Q: And then how do you go about buying it? Are there any rules or laws in place?
Lisa Boniface : Okay. So when buying any property, we always turn to the Alienation of Land Act. It must be in writing. So you enter into a contract for the land - it's a deed of sale - and then you enter into a building contract with the developer or the builder. And then keep in mind when you buy into an estate, you're also acknowledging the rules of that estate. You become part of a homeowners association and you buy into all of those rules and regulations. So it's quite regulated and I think that's a good thing. That's a positive thing. There's architectural guidelines when building in an estate. Usually, there's nominated architects. So there's quite a lot involved when buying into an estate and I think as a buyer, you must definitely do your homework on those elements.
Q: And this is our homework right now. Can you tell me a little bit more about freehold ownership?
Lisa Boniface: Okay. So freehold ownership, you own the building as well as the land that the building is on. So every unit is given an earth number.
Q: So even if you live in a flat?
Lisa Boniface: Okay, but that's now sectional title
Q: That's sectional title? Okay.
Lisa Boniface: Yeah. So we'll get to that.
Q: Okay. So freehold?
Lisa Boniface: Freehold is a piece of land and the building on that piece of land. You get full title to that. And you then are responsible for most things around that earth. So the maintenance, the upkeep, the insurance, rates and taxes, you will be responsible for. In comparison with your sectional title, the body corporate takes control of a few of those elements. So the upkeep of the common property will be dealt with by the body corporate. They will pay the insurance on the building. So there are quite big differences. In a sectional title, you become the owner of a section and an undivided share in the common property. So everything outside of your unit is the common property and each owner shares in that in undivided shares. Whereas in an earth, you own the land that you're on and the building. And although there's communal areas, that's owned by the home owner's association and governed by them.
Q: And which one's better? Is one type of ownership better than the other? I suppose they both come with different pros and cons.
Lisa Boniface: Yeah. So they definitely both have pros and cons. I think, as I mentioned before, Jeannie, it's definitely more affordable to buy into a sectional title. However, it's a lot less exciting because if you are a creative person or you do want to make any changes to the property, it's very difficult to do that. And you would need consents from the body corporate. Whereas in a homeowners association, although there's architectural guidelines and you can't do what you want to, you still have an option to choose different building specifications, different colors in some cases, fixtures and fittings. Whereas in your sectional title units, when you make a change, you do need that consent from the body corporate.
Q: Not on the internal structure? Only external?
Lisa Boniface: No, not on the internal structure--
Q: Because I've only ever owned sectional title.
Lisa Boniface: - but on the external structure. So you basically have to live with what you've got there. To build on a bathroom means consent from the body corporate. And to make any changes to the structures also becomes very problematic. So I think it just depends on your affordability. And if you're happy to live in a sectional title with lots of management rules and conduct rules, then it's a great place to be. And the body corporate does take over a lot of responsibility looking after those common areas, and the costs in that is then shared as well.
Q: Okay. But the body corporate - you can actually live there and be a part of the body corporate. So do you reckon if you've got a sectional title home, you should be part of the body corporate so that nobody can say no to you when you want to make changes?
Lisa Boniface: Yeah. So what happens is, you immediately become a member of the body corporate when that section is transferred into your name. And you can't resign from the body corporate. You automatically become a member of that body corporate. So I think that's important to keep in mind. And the body corporate is really a collective name for owners in a scheme.
Presenter: Oh, yeah. I'm going to have to start going to those meetings [laughter].
Lisa Boniface: No. You're going to have to, definitely.
Presenter: Thank you so much.
Lisa Boniface: No. It's a pleasure.
Presenter: I really do feel more armed now with more information, to ready to go buy more homes [laughter]. I wish.
Presenter: Okay. Remember you can win your choice of one of three fully designed cluster homes at the Eye of Africa Golf Residential Estate in the Win A Home grand prize competition.
To enter, visit www.privateproperty.co.za, answer any question, and vote for your favorite design duo.
