Free-standing house or a sectional title? What homebuyers need to know before signing

Buying a home is one of the biggest financial decisions most South Africans will ever make.

But once you’ve found a property in your price range, another important question often comes up: should you buy a freehold home or a sectional title property?

According to Adrian Goslett, CEO and regional director of RE/MAX Southern Africa, there is no right or wrong answer.

“Today’s buyers are far more intentional about aligning their property choice with their lifestyle, financial position and long-term goals,” said Goslett.

“There is no one-size-fits-all answer. The right property type is the one that best supports how you want to live and invest.”

For many South Africans, however, the choice comes down to balancing affordability, security, space and long-term costs.

Sectional title properties include apartments, flats, townhouses and some semi-detached homes located within complexes or estates. They have become popular among first-time buyers, young professionals and property investors, said Goslett.

One of the biggest advantages is affordability. Sectional title homes are generally cheaper to buy than freehold properties, making them an attractive option for buyers entering the property market for the first time.

They also offer convenience. Owners are not responsible for maintaining communal gardens, driveways, security systems and other shared facilities. These duties are handled by the body corporate, which manages the complex on behalf of residents.

As security costs continue rising in South Africa, this shared-cost model can make sectional title living financially attractive compared to securing a standalone home independently.

—  Harcourts

According to Harcourts real estate agency, sectional titles remain popular because they offer security, which is another major selling point, especially in Gauteng.

Many sectional title developments have access control, guards and security cameras, providing residents with added peace of mind.

“As security costs continue rising in South Africa, this shared-cost model can make sectional title living financially attractive compared to securing a standalone home independently,” Harcourts said.

However, sectional title ownership also comes with drawbacks.

Owners must pay monthly levies that cover maintenance, insurance and management costs. These levies can increase over time, and special levies may sometimes be charged to pay for major repairs.

Residents must also follow rules set by the body corporate, which can limit what owners are allowed to do with their properties, including renovations, pets and even parking arrangements.

Freehold properties offer a different type of ownership experience.

When you buy a freehold home, you own both the building and the land on which it stands. This includes freestanding houses and some cluster homes.

The biggest advantage is freedom. Homeowners have far greater control over their properties and can usually renovate, extend or alter their homes, provided they comply with municipal regulations.

Freehold homes also tend to offer more space and privacy than sectional title units. This makes them popular with families, pet owners and buyers who enjoy outdoor living.

Another benefit is that there are no body corporate rules or monthly levies to worry about.

But owning a freehold property comes with greater responsibility.

All maintenance and repair costs fall directly on the homeowner. Whether it’s fixing a roof leak, maintaining a swimming pool or replacing a boundary wall, the owner must pay the bill.

Goslett said security can also be more expensive. Unlike many sectional title developments, freehold homes may require homeowners to install and maintain their own security systems.

He said buyers should look beyond the purchase price when making their decision.

“Many buyers focus only on what they can afford today, but it is equally important to consider the long-term costs of ownership,” he explained.

He advised buyers to compare monthly levies, maintenance expenses, insurance costs and security requirements before deciding.

For those seeking a lock-up-and-go lifestyle with less day-to-day responsibility, a sectional title property may be the better option.

For buyers who value privacy, space and the freedom to make their own decisions about their property, a freehold home may be worth the extra responsibility.

Ultimately, the best choice is the one that fits your budget, lifestyle and future plans.