Do You Know the True Costs of Owning a Property?
Owning property is a significant investment – but beyond your bond repayments, there are several ongoing costs every owner should be aware of, especially within a Community Scheme:
1. Bond
Repayment for your home loan.
2. Rates and Taxes
Bill from the City Council for rates and refuse removal.
3. Levies:
– Standard Levy – Covers items in the administrative budget.
– Maintenance Levy (Sectional Title Schemes) – Covers items in the maintenance reserve budget (10-year plan).
– Special Levy (if applicable) – For unbudgeted expenses or projects.
– Exclusive Use Levy (if applicable) – For the upkeep of an exclusive use area applicable to your unit.
– CSOS Levy – A compulsory levy for the Community Schemes Ombud Service.
4. Utilities
Bill for your water, electricity, and/or gas usage.
5. Domestic Effluent
Local municipality charge for the removal of wastewater.
6. Insurance:
– Homeowners Insurance – Covers the structure and permanent fittings of your home – included in levies for Sectional Title Schemes; Owner’s responsibility in HOAs.
– Household Insurance – Covers removable contents like furniture, appliances, and personal belongings – Owner’s responsibility.
– Motor Vehicle Insurance – Covers your car against accidents, theft, and other damages. – Owner’s responsibility.
7. Insurance Excess
Payable when claiming. The claimant pays the excess.
8. Internal Repairs, Maintenance and Upgrades
Not included in levies; for the owner’s account.
9. External Repairs and Maintenance
– Sectional Title Schemes – Included in the maintenance levy.
– Homeowners Associations – Usually for the owner’s account.
Knowing your responsibilities helps you plan better and protect your investment.
Get expert guidance from ANGOR Property Specialists: Get expert guidance from ANGOR Property Specialists.
Unexpected costs when buying a property: Essential expenses to budget for