Estate living in South Africa has shown a steady increase over the past decade, highlighting its popularity as an asset class. There are some interesting reasons for this phenomenon; let’s review some of the reasons why estate living has become so popular and why there is an increase in the development of estates. Growth of estates in different geographical areas Although...
Homeowners’ associations (HOA), or estates, as they are commonly referred to, differ from sectional title schemes in a number of ways, offering a few attractive advantages. Let’s consider a few of the most significant advantages of living in an HOA: Lower monthly levies Levies are typically lower than sectional title schemes as contributions are limited to common property expenses such as...
On 1 February 2022 the new Property Practitioners Act will commence. While this new consumer-driven Act aims to provide protection for consumers when purchasing, leasing, financing, renting or property, the requirements will be quite taxing for property practitioners. Below are a few changes of importance that the new law will bring to the industry. Property practitioners & Fidelity Fund Certificates The definition of...
The fundamentals of sectional title schemes and home owners’ associations (HOA) are very similar. Both are community schemes with shared use of common property where owners pay a levy to the scheme as a contribution for common property expenses. There are differences between the two types of community schemes that are important to understand. Legislation The legislative laws that apply to sectional title...
Bodies corporate need to pay continuous attention to its maintenance and financial responsibilities but around mid-December each year some may need a break from the daily management activities of the scheme. Taking a break should not be a problem if trustees and managing agents plan ahead. There are three key elements that should be considered and planned for, these are finance,...