Buying your first sectional title property? Here’s everything you need to know

For many first-time homebuyers, affordability is no longer just about qualifying for a home loan. Rising municipal rates, service charges, insurance costs, and ongoing property maintenance mean buyers are paying closer attention to the total cost of owning a home.

This is one reason sectional title properties continue to appeal to first-time buyers. Apartments, townhouses, and units in sectional title schemes often offer a more predictable monthly cost, shared maintenance responsibilities, and added security, making them an attractive alternative to freehold homes.

However, buying into a sectional title scheme also means becoming part of a community with shared financial responsibilities, rules, and governance. Understanding how these schemes operate before signing an Offer to Purchase can help you avoid unexpected costs and make a more informed buying decision.

Why more first-time buyers are choosing sectional titles

Sectional title living has evolved far beyond simply being an affordable entry point into the property market. Many buyers are deliberately choosing sectional title developments because they offer a combination of affordability, convenience, and lifestyle benefits.

Some of the biggest advantages include:

• Lower purchase prices compared with many freehold homes in the same area
• Shared maintenance of common areas
• Enhanced security through controlled access and security services
• Lock-up-and-go convenience for busy professionals and frequent travellers
• Access to shared facilities such as swimming pools, gyms, gardens, or clubhouses.

With municipal costs continuing to rise, buyers are also recognising the value of sharing expenses such as building insurance, exterior maintenance, and common property upkeep through monthly levies.

That said, not every sectional title is managed equally well. Before committing to a purchase, it’s important to understand exactly what you’re buying into.

Related reading Sectional title vs freehold: Which property type is right for you? Still deciding between a sectional title property and a freehold home? Explore the key differences in ownership, levies, maintenance responsibilities, security, lifestyle and long-term costs to help you choose the option that best suits your budget and future plans. Read the guide

Understand what sectional title ownership means

Unlike buying a freehold property, purchasing a sectional title unit means you own two things:

Your individual section (your apartment, townhouse or unit)
An undivided share of the common property together with every other owner.

Common property includes areas such as:

• Gardens
• Driveways
• Roofs
• Building exteriors
• Staircases
• Lifts
• Recreational facilities

Every owner contributes towards maintaining these shared spaces through monthly levies.

Look beyond the bond repayment

One of the biggest mistakes first-time buyers make is comparing properties based only on their purchase price or monthly bond repayment.

Instead, they should be comparing the total monthly cost of ownership. This should include your bond repayment, monthly levies, municipal rates and taxes, water and electricity, parking or exclusive-use area levies, internet or estate charges where applicable, and insurance costs not covered by the body corporate.

A property with a slightly higher levy may actually prove more affordable if those levies cover services that would otherwise be separate expenses in a freehold home.

Understanding exactly what is included in the levy can give you a much clearer picture of your long-term affordability.

Don’t judge a property by its levy

Many buyers assume the lowest levy represents the best value. In reality, a very low levy can sometimes be a warning sign.

Levies fund essential expenses such as:

• Building insurance
• Security
• Cleaning and maintenance
• Garden services
• Reserve fund contributions
• Repairs to common property
• Management costs

A well-managed scheme collects sufficient levies to maintain the property properly and build financial reserves for future maintenance.

Schemes with unrealistically low levies may struggle to meet future expenses, increasing the likelihood of owners facing large special levies later. Rather than focusing solely on the levy amount, consider whether the scheme appears financially healthy.

What are special levies?

In addition to normal monthly levies, owners may occasionally be required to pay a special levy. Special levies are usually raised when unexpected costs arise that cannot be covered by the existing budget or reserve fund.

Examples include:

• Emergency roof repairs
• Lift replacements
• Major structural maintenance
• Storm or flood damage
• Large security upgrades

Ask the estate agent whether any special levies have been approved, are currently being collected or are being discussed by the body corporate.

Review the sectional title scheme’s financial health

A financially stable body corporate protects both your investment and your future expenses.

Before purchasing, ask for:

• The latest audited financial statements.
• The current budget.
• Details of the reserve fund.
• Information about arrear levy collections.
• Minutes from recent Annual General Meetings (AGMs).

These documents can provide valuable insight into whether the scheme is being managed responsibly. Look out for recurring maintenance issues, ongoing legal disputes or repeated discussions about increasing levies, as these could indicate future financial pressure.

Read the conduct and management rules

Every sectional title scheme has its own conduct and management rules. These govern how residents may use both their units and the common property.

Rules can cover everything from pets to noise levels and use of communal facilities. While these rules help protect residents and property values, they may also affect your lifestyle. If you plan to renovate, keep pets or operate an Airbnb, make sure the scheme's rules allow it before making an offer.
Understand the role of the body corporate
The body corporate is responsible for managing and maintaining the common property on behalf of all owners.

Its responsibilities include:

• Maintaining common areas.
• Collecting levies.
• Arranging insurance.
• Managing service providers.
• Preparing annual budgets.
• Enforcing scheme rules.

Owners elect trustees who oversee these responsibilities and make decisions in the interests of the scheme.

Ask how utilities are billed

Utility billing can vary significantly between sectional title developments, so it's important to understand exactly how services are charged before making an offer. 

Ask whether electricity and water are individually metered or supplied through prepaid meters, whether utilities are billed directly by the municipality or recovered by the body corporate, and which services are already included in the monthly levy. Having a clear picture of these ongoing costs will help you budget more accurately and avoid unexpected expenses once you've moved into your new home. 
Check the maintenance history

A well-maintained complex is often a sign of a proactive and financially responsible body corporate. During your viewing, take note of the overall condition of the property, including the roofs and gutters, exterior paintwork, gardens and landscaping, security systems, driveways, parking areas and the lighting in communal spaces. 

These details can provide valuable insight into how well the scheme is managed and whether routine maintenance is being carried out. Signs of neglected upkeep could indicate that maintenance has been deferred, which may result in costly repairs or special levies for owners in the future.

Questions you should ask before buying a sectional title unit

Before making an offer, ask the estate agent:

• What do the levies include?
• Have there been any recent levy increases?
• Are any special levies planned?
• Is the body corporate financially healthy?
• Can I see the conduct rules?
• Are there any ongoing legal disputes?
• How are utilities billed?
• Are there any major maintenance projects planned?

The more information you gather before purchasing, the fewer surprises you'll encounter after transfer.

Sectional title living continues to grow in popularity as buyers seek homes that offer affordability, security and convenience in an increasingly expensive property market.

While shared ownership can help reduce many of the costs associated with maintaining a property, it's important to understand that buying into a sectional title scheme also means sharing financial responsibilities with other owners.

By looking beyond the purchase price, reviewing the body's finances, understanding the scheme's rules and asking the right questions, you'll be in a much stronger position to choose a well-managed development that supports both your lifestyle and your long-term financial goals.

For many first-time buyers, a well-run sectional title scheme can provide an excellent stepping stone onto the property ladder and a sound investment for years to come.