CONSUMERS
HOUSING & INTERIOR
UNIT 1: DIFFERENT HOUSING ACQUISITION OPTIONS
Housing Options:
There are 3 different housing options:
RENTING - A person renting a house is called the lessee or
tenant
- The owner is called the lessor or landlord
- A property can be rented with or without
furniture. The rent will be substantially higher
when a furnished property is let out.
- The tenant pays a xed amount of money every
month for the right to live on that property.
- An agreement is reached between the tenant and
landlord which is called the lease.
- As soon as both parties have signed the lease,
the tenant and owner have certain rights and
responsibilities by law.
- Home owners usually advertise the property.
BUILDING - If you own a vacant plot (erf), you can build a
house on it. Decide on a building plan that will
suit your lifestyle as well as the plot.
- Before building, house plans must be drafted by
a draughtsman property architect. The plans are
then submitted to the local municipality for
approval.
- Choose a builder/contractor with a good
reputation.
- Get nancing for building the house.
- Building inspectors will regularly inspect.
- When completed, the house must be registered
at the National Home Builders Registration
Council.
BUYING (A full titles or sectional property) - Initial costs are high, however it is a good
investment.
- You must thoroughly assess each potential house
or at.
fl fi fi
, When it comes to buying, it is important to consider the following:
Available finances or budget
Needs of the family
Location
General condition of the property
Security features
In South Africa, There are Two main types of housing:
Full title property
Sectional title property
Full title property - The buyer of a full title property becomes the
legal owner of the full property, that is, the plot as
well as the structures on it.
- Eg. A freestanding house with private property
Sectional title property - The buyer of a sectional title of property
becomes the legal owner of a section (unit) in a
housing complex.
- Eg. A at in a block of ats or a townhouse in a
complex
The following factors need to be taken into account when deciding on renting/
buying/ building a house:
1. The family’s lifestyle
2. The size of the family
3. The stage in the lifecycle of the family
4. Financial circumstances
5. Location of the property
Advantages and disadvantages of the different housing options:
RENTING
ADVANTAGES DISADVANTAGES
- More a ordable for those who can’t a ord to buy - No guarantee that their lease will be renewed
- Monthly housing expenses are lower than - There is no investment in property
ownership expenses
BUILDING
ADVANTAGES DISADVANTAGES
- You can build a house for cheaper than buying - There is always the risk of fault construction
one - It could also cost more than buying a house
- The house can be designed to suit the owners
needs and taste
BUYING A FULL TITLE PROPERTY
ADVANTAGES DISADVANTAGES
- Buyer becomes the legal owner - Initially more expensive to buy than to rent
- Can be used as security for a bank Loan. - The owner is responsible for safety & security
flff fl ff
HOUSING & INTERIOR
UNIT 1: DIFFERENT HOUSING ACQUISITION OPTIONS
Housing Options:
There are 3 different housing options:
RENTING - A person renting a house is called the lessee or
tenant
- The owner is called the lessor or landlord
- A property can be rented with or without
furniture. The rent will be substantially higher
when a furnished property is let out.
- The tenant pays a xed amount of money every
month for the right to live on that property.
- An agreement is reached between the tenant and
landlord which is called the lease.
- As soon as both parties have signed the lease,
the tenant and owner have certain rights and
responsibilities by law.
- Home owners usually advertise the property.
BUILDING - If you own a vacant plot (erf), you can build a
house on it. Decide on a building plan that will
suit your lifestyle as well as the plot.
- Before building, house plans must be drafted by
a draughtsman property architect. The plans are
then submitted to the local municipality for
approval.
- Choose a builder/contractor with a good
reputation.
- Get nancing for building the house.
- Building inspectors will regularly inspect.
- When completed, the house must be registered
at the National Home Builders Registration
Council.
BUYING (A full titles or sectional property) - Initial costs are high, however it is a good
investment.
- You must thoroughly assess each potential house
or at.
fl fi fi
, When it comes to buying, it is important to consider the following:
Available finances or budget
Needs of the family
Location
General condition of the property
Security features
In South Africa, There are Two main types of housing:
Full title property
Sectional title property
Full title property - The buyer of a full title property becomes the
legal owner of the full property, that is, the plot as
well as the structures on it.
- Eg. A freestanding house with private property
Sectional title property - The buyer of a sectional title of property
becomes the legal owner of a section (unit) in a
housing complex.
- Eg. A at in a block of ats or a townhouse in a
complex
The following factors need to be taken into account when deciding on renting/
buying/ building a house:
1. The family’s lifestyle
2. The size of the family
3. The stage in the lifecycle of the family
4. Financial circumstances
5. Location of the property
Advantages and disadvantages of the different housing options:
RENTING
ADVANTAGES DISADVANTAGES
- More a ordable for those who can’t a ord to buy - No guarantee that their lease will be renewed
- Monthly housing expenses are lower than - There is no investment in property
ownership expenses
BUILDING
ADVANTAGES DISADVANTAGES
- You can build a house for cheaper than buying - There is always the risk of fault construction
one - It could also cost more than buying a house
- The house can be designed to suit the owners
needs and taste
BUYING A FULL TITLE PROPERTY
ADVANTAGES DISADVANTAGES
- Buyer becomes the legal owner - Initially more expensive to buy than to rent
- Can be used as security for a bank Loan. - The owner is responsible for safety & security
flff fl ff
