It is no surprise that recent reports suggest that the average price of Cape Town Sectional Title property is now at around R1.5m which is significantly more than the R800 000 for the Johannesburg metro.
Besides the Cape Town property market gaining remarkable ground and becoming a favourable region for both local and foreign property buyers the allure of Sectional Title ownership has been on the increase over the past few years.
There are a number of reasons for this and most notably it is the security and comfort Sectional Title ownership and living offers. Living in a community has become a prerequisite for many people buying in South Africa.
Sectional Title units are often more affordable than free hold properties without having to compromise on affordability or lifestyle. A family hoping to purchase a property with three bedrooms in a safer more family orientated suburb might be able to do so far easier by buying into Sectional Title than by buying a Full Title home. The demand for these properties makes financial sense as the promise of a return when selling on is in your favour.
Another attraction for buyers looking into Sectional Title schemes is the pooling of general maintenance and municipal costs (not including the rates cost) in respect of the common property.
As with any investment, it is imperative that potential buyers understand the precautions they must take when purchasing sectional title property. The first thing you need to take cognisance of is that when buying a Sectional Title unit it is important to deal with an agent who specialises in Sectional Title sales and who understands the product on offer. It is also important to note that when buying into Sectional Title the stability and future viability of the Scheme is unquestionably linked to the involvement of the Trustees and the quality and professionalism of the managing agent.
Sectional Title units will continue to become more popular among buyers of South African property in the future and is likely to provide a good return on investment for discerning investors.
Milward and King
Cell: 083 260 8560
Office: 021 712 2600