Why first-time buyers are choosing sectional title properties
Category Property Advice
Over the past few years, there has been an increase in the demand for sectional title flats and townhouses in South Africa. The benefits offered with this type of ownership makes sectional title homes a top choice for a large percentage of first-time home buyers. So what makes sectional title properties attractive to new buyers?
Convenience
First-time buyers are generally younger homeowners who value convenience. Homes in sectional title schemes offer easy lock-up and go lifestyles which appeal to the modern buyer. While first-time buyers are still starting out in their careers, they do not want to spend hours travelling to work, cleaning the garden, or fixing a leaking tap. They would rather spend their time in leisure at the gym, shopping malls, restaurants, and social gatherings. Therefore, much emphasis is placed on the close proximity to the amenities that make life a breeze.
Security
Many sectional title developments have top-notch security measures in place. With the crime rate being high in most areas, this appeals to buyers and brings a sense of peace of mind to their safety concerns. Buyers are on the lookout for developments that have the latest security features such as CCTV, biometric scanners, along with patroled gates with restricted access. According to the analytics director at Lightstone, Paul-Roux de Kock, "The willingness of potential home buyers to pay a premium on the additional security that some sectional schemes might offer tends to hold up even during times of crisis, especially if that market segment entered the crisis on a strong footing."
Affordability
Since first-time buyers are merely starting out life on their own, affordability and financial independence is always on their mind. They seek the best deals that will not take a lifetime to pay off. With that said, owning a sectional title property in an upmarket location can be more affordable than owning a freehold home that would be exorbitantly expensive. With the current low prime lending rate of 3.75% and the Government's introduction of FLISP (Finance Linked Individual Subsidy Programme), it has become much more affordable for first-time buyers to own a home. Moreover, property priced under R1-million are exempted from paying for any transfer duty costs, as per the 2020 Budget Speech. These factors of affordability make purchasing a sectional title property more alluring.
Fixed costs
As mentioned, first-time buyers are more focused on personal growth rather than what their gardens may look like. As sectional title owners are required to pay fixed monthly levies, this ensures that there are no maintenance issues springing up. The levy covers necessary expenses incurred by the Body Corporate in the administration and running of the common property, such as insurance, maintenance, wages and salaries of cleaners, security and other staff involved in the upkeep of the development. The cost of maintaining pools, tennis courts, communal park areas and clubhouses does not fall on the first-time buyer. However, owners are responsible for their own rates and taxes, home insurance, monthly electricity, as well as water consumption.
Close-knit communities
Young first-time buyers prefer a community lifestyle filled with lots of social contacts and the companionship of close neighbours. Residents living in sectional title schemes tend to have more close-knit relationships and friendly interactions with one another. Gatherings at the communal pool and braai areas encourage neighbours to get to know each other.
Buying your first property can be a challenging process. Our agents are equipped with experience and knowledge to help you make the best buy in a sectional title scheme. Contact Knight Frank today for more details.
Author: Knight Frank
