Currently a wide variety of buyers are looking to sectional title units to meet their accommodation needs, says Carol Reynolds, Pam Golding Properties manager for the Durban area.
"Sectional title units appeal to a broad range of home buyers including both owner-occupiers and investors, and at present we see a demand from a mix of first time buyers, pensioners, retirees, young couples and families, single parent families and of course, investors as a buy-to-let investment.  We also find parents standing surety for their children – young people investing jointly in sectional title apartments and professionals pooling their incomes to buy in more than one person's name," says Reynolds.
She says buyers are attracted to sectional title complexes for numerous reasons. They offer good security, which is high on the priority list of most home purchasers, while external maintenance is taken care of by the body corporate and pools and gardens kept in good condition all year round.
"The sectional title sector of the market presents good buying opportunities right now. Interest rates are low, and from a buy to let perspective the tenant pool has grown – as many would-be purchasers are compelled to rent due to the banks' stricter lending criteria. Sectional title units are very suitable for letting and in fact are usually easier to let than freestanding homes.
"From a location point of view, here in Durban we find Glenwood has broad appeal because of its proximity to the university and hospitals, making it ideal for doctors, nurses, students and lecturers. On the Berea and in Morningside, sectional title units are popular among those wanting convenient access to highways and the CBD for easy travel to work, as well as those drawn by the number of good schools in the area. We are also starting to see renewed interest in the CBD from investors. For example, the Royal Hotel has been sectionalised and we are selling off units there with the advantage of excellent returns via the rental pool."
Reynolds offers some sound advice for those buying into sectional title schemes: Ask to see the financial report, which should be audited, and check that the body corporate is liquid. The body corporate should also have funds in reserve – if not, this is a concern as there will be no contingency budget for emergencies. Also ascertain if there is any talk of pending special levies – this would be recorded in minutes of meetings – if so, for what purpose. And look at the outstanding levies noted in the financials – at any given time there shouldn't be more than 5-10 percent outstanding; any more than this is a concern. Finally, take note of the general exterior maintenance of the buildings – a good body corporate maintains its block/s well and this is usually a good indication of a healthy bank balance.
She says first time buyers who have no experience of a body corporate need to familiarise themselves with the body corporate rules. "It's a good idea to investigate the profile of the other owners, for example, senior citizens may prefer not to move into a block that is predominantly owned by young families with children. It's always important to establish what percentage of the units is owner-occupied and what percentage tenanted. From an investment perspective, always ask your estate agent what rental return you can expect in a block and what the monthly levies are, to see whether the purchase makes financial sense. And in the current lending climate it's critical to ask your agent whether the banks are finding value in the block, and whether they are financing property in the building," adds Reynolds.
PGP Durban is currently marketing a range of conveniently located sectional title homes priced from an entry level figure of R250 000 in the CBD, to a range of well priced units on the beachfront starting at R330 000 and ranging into the millions. In Somerset Country Estate in the Glenwood surrounds is a recently listed, appealing two bedroom simplex in excellent condition with a garden and two parking bays priced at R795 000.
Issued by Gaye de Villiers

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us