HOUSING AND FURNISHINGS
4.1 Explain the financial and contractual responsibilities of the occupants for different housing
options and identify the role players involved.
Demonstrate knowledge and understanding of financial and contractual responsibilities of the occupants for
different housing options:
Types of housing in South Africa (e.g. single dwelling, cluster, etc.)
Housing ownership options (e.g. full title/freehold, sectional title)
Different housing acquisition options (renting, buying, building)
Advantages and disadvantages of the different options
Financial implications for each option
- Deposits (buying and renting)
- Bonds/mortgage loan, bank requirements for granting bonds
- Insurance (bond/life insurance, home owners comprehensive and short-term contents)
- Monthly repayments of bond/rental
- Transfer and other hidden costs
- Financial implications of running own home (municipal costs, taxes)
Contractual implications
Identify the role players in accessing housing:
Government housing schemes,
Financial and other housing NGOs,
Subsidies state and employers,
The estate agent
NHBRC
TYPES OF HOUSING IN SOUTH AFRICA (E.G. SINGLE DWELLING, CLUSTER, ETC.)
A single dwelling, also called a single-family Cluster housing is a subdivision technique where
detached home, single-detached dwelling, single- dwellings are grouped close together with shared
family residence or separate house is a free- common areas. Several units are attached to each
standing residential building. It is defined in other, typically with shared walls between units.
opposition to a multi-family residential dwelling.
One individual dwelling / house on a separate lot.
o An apartment (American English) or flat
Examples include separate detached houses, (British English) is a housing unit that occupies
townhouses where each dwelling is separately only part of a building on a single level.
titled, though they may share common
o A townhouse (separate or attached) is built on a
infrastructure.
separate plot in a complex; owner owns the land
the townhouse is built on.
o A duplex is a house or townhouse attached to
another similar house or townhouse on a single
plot of land.
1
,Farms
a Farm is a property which is mainly used for agricultural activities. South Africa has many such properties
which include wine farms, wildlife farms and a variety of farms on which various types of food is produced.
Small Holdings
Small holdings include plots and agricultural holdings. A small holding can be over 10 hectare in size but is
usually substantially smaller than a farm. Small holdings often have numerous outbuildings on the property;
these outbuildings are often converted to cottages and used as rental properties. The area of land on a small
holding is suitable for a large garden, vegetable patch or fruit trees.
Bachelor Flats
A bachelor flat is a small property usually consisting of one bedroom with lounge/dining room, kitchen and
bathroom.
Flats
This type of property is bigger than bachelor flats and usually has one or two bedrooms with the bigger flats
consisting of three bedrooms.
Town Houses
Town houses are properties that are located within a complex which usually has between 20 and 30 town
houses. The town house property can either be a semi consisting of one floor or a duplex which has two
floors. When considering buying a townhouse it is important to find out the levy for the complex as this
varies quite dramatically from complex to complex.
Cluster Houses
Cluster houses are houses that are located in a complex. Gardens and pools that form part of the house is
maintained by the owner and not the responsibility of the body corporate as with town house complexes.
Cluster house complexes often have communal facilities such as pools, clubhouses, tennis courts etc. Cluster
house complexes also usually charge levies for the maintenance of the complex.
Cottages
Cottages are located on larger properties usually small holdings. They are located away from the main
building on the property and are usually rented out.
Houses
Most of the houses in South Africa are single story buildings with double story buildings only recently
becoming popular in South Africa as the demand for property increases. Styles of houses in South Africa
vary a lot and they can have plastered, stone or brick external finishes.
2
,HOUSING OWNERSHIP OPTIONS (E.G. FULL TITLE/FREEHOLD, SECTIONAL TITLE)
FULL TITLE / FREEHOLD SECTIONAL TITLE OWNERSHIP
OWNERSHIP NB terminology
Definition: The person who buys the property A system in which units or sections of a
becomes the legal owner of the entire building are individually owned whilst
property, meaning the land and all the owning a share in all common property
structures on it. (including lifts, passages, stairways,
garden areas, pool)
The owner is Rates and taxes / Property tax Monthly levy paid to the
responsible for: Services (water, electricity, refuse body corporate
removal and sewerage) Maintenance (internal only)
Security (alarm / armed response)
Each owner in the sectional title scheme
Maintenance (internal and external)
is a member of the body corporate of
Bond payments
the scheme, which must control,
Bond / home loan protection insurance administer and manage the scheme. The
Household insurance body corporate is also responsible for
the election of trustees who are
Insurance (HOC) responsible for the day-to-day running
of the scheme.
The monthly levy is used for:
Rates and taxes / Property tax
Service fees
Water and electricity costs for
common property
Insurance (HOC)
Maintenance to the buildings and
common property
Wages and salaries of the staff
Examples: Residential houses Flats / Apartments
Cluster housing (free standing Townhouses
property in a development) with Duet Houses
private gardens
Small holdings
Farms
- Short-term insurance that protects the property against
structural damage from fire, floods and natural disasters. (Financial institutions insist on HOC upon approval
of a home loan, because the property serves as security for the loan.)
Household insurance Insurance that covers the contents (e.g. furniture, TV, appliances) of a property
against fire and theft.
Bond / home loan protection insurance The financial institution approving the home loan will require the
buyer to take out insurance to cover the loan in case the buyer dies, or becomes disabled or unfit for work.
3
, Municipal rates and taxes / property tax are monthly fees paid to the municipality for refuse removal and
sewerage. The amount is calculated on the market value of the property. Calculation depends on the property
type.
Business owners JANE JONES
can register as a 7 Lily Street
VAT vendor and 7 Lily Street
obtain a VAT 5 Oak Villa
number. The
business owner
may then subtract
any VAT paid from
VAT received. The
difference is then
paid over or
claimed from the
receiver of revenue
(SARS).
If you work for a
monthly salary you
will have an
income tax number
not to be
confused with a
VAT number.
Currently 15% VAT
(Value Added Tax)
is added to the
price charged for
goods (food,
clothing, housing)
and services at
each stage of
production.
4
4.1 Explain the financial and contractual responsibilities of the occupants for different housing
options and identify the role players involved.
Demonstrate knowledge and understanding of financial and contractual responsibilities of the occupants for
different housing options:
Types of housing in South Africa (e.g. single dwelling, cluster, etc.)
Housing ownership options (e.g. full title/freehold, sectional title)
Different housing acquisition options (renting, buying, building)
Advantages and disadvantages of the different options
Financial implications for each option
- Deposits (buying and renting)
- Bonds/mortgage loan, bank requirements for granting bonds
- Insurance (bond/life insurance, home owners comprehensive and short-term contents)
- Monthly repayments of bond/rental
- Transfer and other hidden costs
- Financial implications of running own home (municipal costs, taxes)
Contractual implications
Identify the role players in accessing housing:
Government housing schemes,
Financial and other housing NGOs,
Subsidies state and employers,
The estate agent
NHBRC
TYPES OF HOUSING IN SOUTH AFRICA (E.G. SINGLE DWELLING, CLUSTER, ETC.)
A single dwelling, also called a single-family Cluster housing is a subdivision technique where
detached home, single-detached dwelling, single- dwellings are grouped close together with shared
family residence or separate house is a free- common areas. Several units are attached to each
standing residential building. It is defined in other, typically with shared walls between units.
opposition to a multi-family residential dwelling.
One individual dwelling / house on a separate lot.
o An apartment (American English) or flat
Examples include separate detached houses, (British English) is a housing unit that occupies
townhouses where each dwelling is separately only part of a building on a single level.
titled, though they may share common
o A townhouse (separate or attached) is built on a
infrastructure.
separate plot in a complex; owner owns the land
the townhouse is built on.
o A duplex is a house or townhouse attached to
another similar house or townhouse on a single
plot of land.
1
,Farms
a Farm is a property which is mainly used for agricultural activities. South Africa has many such properties
which include wine farms, wildlife farms and a variety of farms on which various types of food is produced.
Small Holdings
Small holdings include plots and agricultural holdings. A small holding can be over 10 hectare in size but is
usually substantially smaller than a farm. Small holdings often have numerous outbuildings on the property;
these outbuildings are often converted to cottages and used as rental properties. The area of land on a small
holding is suitable for a large garden, vegetable patch or fruit trees.
Bachelor Flats
A bachelor flat is a small property usually consisting of one bedroom with lounge/dining room, kitchen and
bathroom.
Flats
This type of property is bigger than bachelor flats and usually has one or two bedrooms with the bigger flats
consisting of three bedrooms.
Town Houses
Town houses are properties that are located within a complex which usually has between 20 and 30 town
houses. The town house property can either be a semi consisting of one floor or a duplex which has two
floors. When considering buying a townhouse it is important to find out the levy for the complex as this
varies quite dramatically from complex to complex.
Cluster Houses
Cluster houses are houses that are located in a complex. Gardens and pools that form part of the house is
maintained by the owner and not the responsibility of the body corporate as with town house complexes.
Cluster house complexes often have communal facilities such as pools, clubhouses, tennis courts etc. Cluster
house complexes also usually charge levies for the maintenance of the complex.
Cottages
Cottages are located on larger properties usually small holdings. They are located away from the main
building on the property and are usually rented out.
Houses
Most of the houses in South Africa are single story buildings with double story buildings only recently
becoming popular in South Africa as the demand for property increases. Styles of houses in South Africa
vary a lot and they can have plastered, stone or brick external finishes.
2
,HOUSING OWNERSHIP OPTIONS (E.G. FULL TITLE/FREEHOLD, SECTIONAL TITLE)
FULL TITLE / FREEHOLD SECTIONAL TITLE OWNERSHIP
OWNERSHIP NB terminology
Definition: The person who buys the property A system in which units or sections of a
becomes the legal owner of the entire building are individually owned whilst
property, meaning the land and all the owning a share in all common property
structures on it. (including lifts, passages, stairways,
garden areas, pool)
The owner is Rates and taxes / Property tax Monthly levy paid to the
responsible for: Services (water, electricity, refuse body corporate
removal and sewerage) Maintenance (internal only)
Security (alarm / armed response)
Each owner in the sectional title scheme
Maintenance (internal and external)
is a member of the body corporate of
Bond payments
the scheme, which must control,
Bond / home loan protection insurance administer and manage the scheme. The
Household insurance body corporate is also responsible for
the election of trustees who are
Insurance (HOC) responsible for the day-to-day running
of the scheme.
The monthly levy is used for:
Rates and taxes / Property tax
Service fees
Water and electricity costs for
common property
Insurance (HOC)
Maintenance to the buildings and
common property
Wages and salaries of the staff
Examples: Residential houses Flats / Apartments
Cluster housing (free standing Townhouses
property in a development) with Duet Houses
private gardens
Small holdings
Farms
- Short-term insurance that protects the property against
structural damage from fire, floods and natural disasters. (Financial institutions insist on HOC upon approval
of a home loan, because the property serves as security for the loan.)
Household insurance Insurance that covers the contents (e.g. furniture, TV, appliances) of a property
against fire and theft.
Bond / home loan protection insurance The financial institution approving the home loan will require the
buyer to take out insurance to cover the loan in case the buyer dies, or becomes disabled or unfit for work.
3
, Municipal rates and taxes / property tax are monthly fees paid to the municipality for refuse removal and
sewerage. The amount is calculated on the market value of the property. Calculation depends on the property
type.
Business owners JANE JONES
can register as a 7 Lily Street
VAT vendor and 7 Lily Street
obtain a VAT 5 Oak Villa
number. The
business owner
may then subtract
any VAT paid from
VAT received. The
difference is then
paid over or
claimed from the
receiver of revenue
(SARS).
If you work for a
monthly salary you
will have an
income tax number
not to be
confused with a
VAT number.
Currently 15% VAT
(Value Added Tax)
is added to the
price charged for
goods (food,
clothing, housing)
and services at
each stage of
production.
4
