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There are often cases, particularly in older sectional title blocks, where units will need modernising or upgrading in some way or another.
When deciding to buy a home, there are a few things a purchaser will have to consider.
The requirements now necessary with regards to sectional title maintenance of major capital items as per the Sectional Title Schemes Management Act (STSMA) are there to create a more formalised and long term view with regards to maintenance, which in turn will create a need for better budgeting and financial management, says Michael Bauer, general manager of property management company IHFM.
Following the trend in the property sales market, there is a lack of stock in the rental market in the upper price bracket, which is resulting in landlords being able to achieve higher market rental prices, says Michael Bauer, managing director of IHPC estate agency.
Many investors in buy to let properties often miscalculate what their returns would be by omitting some of the expenses they incur in running property that is rented out, says Michael Bauer, managing director of IHPC.
Share blocks can be complicated to run as they are classed as companies, and each owner of a unit has shares on the company.
Those who live in sectional title schemes and pay their levies on time are not affected by the interest rates charged on overdue levies, but those who habitually pay late will probably be hoping there is a maximum percentage of interest set by law on overdue accounts
In the past those who wanted to invest in listed property in South Africa chose JSE listed property unit trusts (PUTs) or property loan stock companies (PLSs).
The interest accrued on the deposit held must be added to the deposit refund to the tenant at the end of the lease.
Some property investors often consider investing in property as part of a syndicate or group of people, but the problem with this sort of scheme is that you have to bring an equal amount of money to invest as the others in the syndicate do and there is a chance of arguments between shareholders.