Comparison

Sectional Title vs Freestanding

A sectional title unit carries levies but shares the building costs. A freestanding house has no levies but carries the roof, geyser and garden alone. Compare both properly.

Inputs

Interest rate

% p.a.

Bond term

years

Sectional title unit

Purchase price

Bond amount

Monthly rent

Levies

Covers building insurance, common area upkeep and often water or refuse.

Rates and taxes

Insurance

Maintenance allowance

% of rent

Usually lower. The body corporate carries the roof and exterior.

Vacancy allowance

% of rent

Freestanding house

Purchase price

Bond amount

Monthly rent

Levies

Zero on a standard erf. Enter the estate levy if it is in a security estate.

Rates and taxes

Insurance

Maintenance allowance

% of rent

Usually higher. You carry the roof, geyser, plumbing and garden.

Vacancy allowance

% of rent

Results

Sectional title cash flow

-R 5 217

Freestanding cash flow

-R 7 237

Sectional title net yield

6.1%

Freestanding net yield

6.2%

Sectional title running costs

R 2 535

Bond R 11 612

Freestanding running costs

R 2 940

Bond R 16 257

Monthly difference

R 2 020

The sectional title unit is ahead on these numbers.

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Read the guide

Sectional title vs freestanding property Understanding levies in sectional title schemes

Estimates only, based on the figures you enter. Levies, special levies, rates rebates and maintenance liabilities differ by scheme and municipality. Read the scheme rules and the latest financials before you buy into a sectional title.