Buying property is a huge financial commitment; every cent counts when following through on a property investment. Sectional title schemes are a popular choice for cost savings and convenience.
There has been an uptick in fees. Municipal tariffs have increased by 7 – 13%, and water expenses have risen by 4.5 – 14%. With these price surges, sectional title properties that offer lower purchase prices, shared expenses, and better security position themselves as a better option.
Flats, townhouses, and complexes are in demand because of their lock-up-and-go living, which appeals to remote workers, frequent travellers, commutors, and people living alone.
However, this bargain can quickly become a burden if you don’t account for hidden costs and manage your finances poorly.
Before you commit to a scheme, do your due diligence and request specific documents. Here’s a checklist to help you ensure you’re buying into a well-run, financially healthy scheme and not falling into a money trap.
If you spot red flags, you must protect yourself and ensure the deal is worth the risk. You don’t have to walk away, but ensure you’re negotiating and getting the best deal.
Bottom line, ensure the scheme is financially sound and you’re not signing up for years of rising levies and surprise bills.
