ITS MY HOUSE: Is Estate Living Worth It? Or Are We Just Paying For Status?

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Lebogang Lebepe – Founder & CEO of BizzHouse talks about Which is the better investment: sectional title or freehold ownership?

Freeholds generally are a good choice for people looking to invest in property as a long term investment strategy and sectional titles generally are a good choice for those who want to build a rental portfolio to generate a steady stream of income. Freeholds generally have a higher house price inflation rate than sectional titles do, which means that a freehold is more likely to show greater appreciation in value over time than a sectional title might show. Every situation is different though. Investing in property is always a good idea, so these legalities depend on what you need from your real estate.

Estate living doesn't always mean lower insurance premiums

Buying within security estates can give buyers the freedom to choose not to live behind bars. Guarded by an external wall and regular security patrols, homeowners often don’t see the need to install extra security measures like burglar bars and alarm systems on homes within gated communities. But, are these security estates secure enough for your insurance provider?

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, buyers should not assume that their insurance premium will automatically be lower simply because they have moved to a security estate.

Sectional title versus freehold property

Sectional title refers to the ownership of a unit that forms part of a group-owned complex or development.
31 Jan 2023 1PM English South Africa Business News · Investing

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