Housing
Types of housing
Single dwelling
● A free-standing residential building
● In opposition to a multi-family residential building
Cluster housing
● A subdivision technique where dwellings are grouped close together
● With shared common areas
● Several units are attached to each other, typically with shared walls
● An apartment or flat
● A housing unit that only occupies a part of a building on a single level
● A townhouse
● Built on a separate plot in a complex
● Owner owns the land the townhouse is built on
● A duplex
● A house or townhouses attached to another similar house on a single plot of land
Housing ownership options
Full title/ freehold ownership
Definition
● The person who buys becomes the legal owner of the entire property
● The land and all the structures on it
The owner’s responsibilities
● All rates and services
● Maintaining the property
Examples
● Residential houses
Sectional title ownership
Definition
● A system where units or sections of a building are individually owned while
owning a share in all common property
,The owner is responsible for
● Monthly levy paid to the body corporate
● Rates and taxes to the municipality
Examples
● Flats
● Duplexes
● Townhouses
● The body corporate conducts the business of running the scheme
● Eg taking care of the gardens and waste disposal
● All sectional title owners are members of the body corporate
● The levy is used to pay the rates and taxes as well as the water and electricity
used by the common areas
● Municipal rates are monthly fees paid to the municipality for refuse removal and
sewerage
● Business owners can register as a VAT vendor and obtain a VAT number
● They can then subtract any VAT paid from VAT received
● The difference is then paid over or claimed from SARS
● If you work for a monthly salary you will have an income tax number- not to be
confused with a VAT number
● Currently at 15% VAT (Value Added Tax) is added to the price of goods and
services at each stage of production
Become a homeowner
Buying an existing home (full title)
● Buy an already built house with an offer to purchase
● It is a written contract between the buy and seller stating the terms being offered
(the price) known as the contract of sale
Buying land and building (full title)
● Buy land and sign a building contract with a developer
● A building contract is a written agreement between the client and the builder
● It lists all the conditions according to the agreed plan
● The contract makes you responsible for payment to the builder and set out the
terms of payment
, Buying a sectional title property (flats or townhouses)
● A residential unit
● Each unit is individually owned but common areas are jointly owned
● Each owner pays a levy to pay for the maintenance of the common areas; rates,
water and electricity consumption
● Each owner is a member of the body corporate, they are responsible for the
election of trustees
● Trustees are responsible for the dat to day running
Building through the people’s housing process
● Local government provides a subsidy to certain groups to enable them to build
their own homes
● They are responsible for the building
When considering housing options one should consider
● Family needs (size, stage in the family life cycle)
● Location (region, community, neighbourhood)
● Financial position
Full title
Advantages
● The buyer becomes the legal owner fo the entire property
● Including the land and buildings
● It instils a feeling of pride, security and independence
● No need for approval for minor changes
● A room can be rented out to earn income
● A business can be run to earn an income, provided that the municipality approves
this
● It is quieter and more private
Disadvantages
● Maintenance is the responsibility of the owner
● The owner is responsible for the safety and security of the property
● The owner needs to obtain approval from the municipality for any major structural
changes to the exterior of the property
Sectional title
Advantages
● Provides greater security as units are closer together
● Maintenance costs are lower
● Common facilities without the responsibility of maintaining them
● Fewer responsibilities as the Body Corporate must administrate, control and
Types of housing
Single dwelling
● A free-standing residential building
● In opposition to a multi-family residential building
Cluster housing
● A subdivision technique where dwellings are grouped close together
● With shared common areas
● Several units are attached to each other, typically with shared walls
● An apartment or flat
● A housing unit that only occupies a part of a building on a single level
● A townhouse
● Built on a separate plot in a complex
● Owner owns the land the townhouse is built on
● A duplex
● A house or townhouses attached to another similar house on a single plot of land
Housing ownership options
Full title/ freehold ownership
Definition
● The person who buys becomes the legal owner of the entire property
● The land and all the structures on it
The owner’s responsibilities
● All rates and services
● Maintaining the property
Examples
● Residential houses
Sectional title ownership
Definition
● A system where units or sections of a building are individually owned while
owning a share in all common property
,The owner is responsible for
● Monthly levy paid to the body corporate
● Rates and taxes to the municipality
Examples
● Flats
● Duplexes
● Townhouses
● The body corporate conducts the business of running the scheme
● Eg taking care of the gardens and waste disposal
● All sectional title owners are members of the body corporate
● The levy is used to pay the rates and taxes as well as the water and electricity
used by the common areas
● Municipal rates are monthly fees paid to the municipality for refuse removal and
sewerage
● Business owners can register as a VAT vendor and obtain a VAT number
● They can then subtract any VAT paid from VAT received
● The difference is then paid over or claimed from SARS
● If you work for a monthly salary you will have an income tax number- not to be
confused with a VAT number
● Currently at 15% VAT (Value Added Tax) is added to the price of goods and
services at each stage of production
Become a homeowner
Buying an existing home (full title)
● Buy an already built house with an offer to purchase
● It is a written contract between the buy and seller stating the terms being offered
(the price) known as the contract of sale
Buying land and building (full title)
● Buy land and sign a building contract with a developer
● A building contract is a written agreement between the client and the builder
● It lists all the conditions according to the agreed plan
● The contract makes you responsible for payment to the builder and set out the
terms of payment
, Buying a sectional title property (flats or townhouses)
● A residential unit
● Each unit is individually owned but common areas are jointly owned
● Each owner pays a levy to pay for the maintenance of the common areas; rates,
water and electricity consumption
● Each owner is a member of the body corporate, they are responsible for the
election of trustees
● Trustees are responsible for the dat to day running
Building through the people’s housing process
● Local government provides a subsidy to certain groups to enable them to build
their own homes
● They are responsible for the building
When considering housing options one should consider
● Family needs (size, stage in the family life cycle)
● Location (region, community, neighbourhood)
● Financial position
Full title
Advantages
● The buyer becomes the legal owner fo the entire property
● Including the land and buildings
● It instils a feeling of pride, security and independence
● No need for approval for minor changes
● A room can be rented out to earn income
● A business can be run to earn an income, provided that the municipality approves
this
● It is quieter and more private
Disadvantages
● Maintenance is the responsibility of the owner
● The owner is responsible for the safety and security of the property
● The owner needs to obtain approval from the municipality for any major structural
changes to the exterior of the property
Sectional title
Advantages
● Provides greater security as units are closer together
● Maintenance costs are lower
● Common facilities without the responsibility of maintaining them
● Fewer responsibilities as the Body Corporate must administrate, control and
