First-Time Buyer’s Guide to Sectional Title Property
Buying your first home is an exciting milestone, but choosing the right sectional title property involves more than finding a home you love and securing a bond. From monthly levies and body corporate rules to maintenance and additional costs, understanding how sectional title ownership works can help you make a confident and informed decision.
Why choose a sectional title property?
Apartments and townhouses are popular with first-time buyers because they can offer a more affordable entry into the property market, along with added security, shared maintenance and convenient lock-up-and-go living.
Many developments also offer shared facilities such as swimming pools, landscaped gardens, gyms and entertainment areas. However, the benefits of sectional title living depend largely on how well the scheme is managed.
Look beyond the purchase price
When working out whether a property is affordable, don't focus only on the bond repayment. Your monthly costs may also include:
- Sectional title levies
- Municipal rates and taxes
- Water and electricity
- Parking or exclusive-use charges
- Insurance not covered by the body corporate
- Additional estate or service fees
A higher levy isn't necessarily a disadvantage if it covers quality services, maintenance and adequate contributions to the scheme's reserve fund.
Understand the levies and special levies
Levies contribute towards the running and maintenance of the development, including security, gardening, insurance, repairs and common-property upkeep.
It is important to ask whether the scheme has recently increased its levies or whether any special levies have been approved or are being considered. Special levies can be charged for significant unexpected expenses such as roof repairs, structural work, lift replacements or security upgrades.
A low levy may appear attractive, but it could also indicate that the scheme is not adequately funding future maintenance.
Check the body corporate's financial health
Before making an offer, prospective buyers should find out as much as possible about the financial position of the sectional title scheme. Where available, review recent financial statements, AGM minutes, reserve fund information and the current budget.
Look out for significant levy arrears, ongoing legal disputes, major maintenance requirements or discussions around future special levies. A financially sound and well-managed scheme can help protect both your monthly budget and the long-term value of your investment.
Read the rules
Every sectional title development has its own management and conduct rules. These may regulate pets, noise, parking, renovations, short-term rentals and the use of communal areas.
If you have specific plans for the property, make sure they are permitted by the scheme before signing an Offer to Purchase.
Inspect more than just the unit
During your viewing, look beyond the apartment or townhouse itself. Pay attention to the condition of communal areas, gardens, parking, security, exterior walls, roofs, lifts and other shared facilities.
Poor maintenance may indicate that larger repairs have been delayed, potentially resulting in additional costs for owners in the future.
Questions to ask before buying
Before committing to a sectional title property, ask:
- What does the monthly levy include?
- Have there been recent levy increases?
- Are there any current or proposed special levies?
- Is the body corporate financially healthy?
- How are water and electricity billed?
- What are the scheme's conduct rules?
- Are there any major maintenance projects planned?
Make an informed decision
Sectional title can be an excellent option for first-time buyers looking for affordability, security and convenience. However, the property itself is only part of the investment.
By understanding the levies, rules, financial position and maintenance of the scheme, you can avoid unexpected costs and choose a property that fits both your lifestyle and your long-term financial goals.