Sectional Title vs Freehold Calculator
Compare the real costs, yields and returns of sectional title vs freehold investment properties.
Sectional Title vs Freehold Comparison
Enter details for both property types to compare side-by-side
🏢 Sectional Title
🏡 Freehold
| Metric | Sectional Title | Freehold |
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Frequently Asked Questions
Common questions about this calculator
▸ What is the difference between sectional title and freehold in South Africa?
Sectional title means you own your unit and an undivided share of common property. You pay monthly levies to the body corporate for maintenance and management of common areas. Freehold (full title) means you own the land and all structures outright, with full responsibility for all maintenance.
▸ Are levies included in rental yield calculations?
Yes, levies must be deducted from rental income when calculating net yield. A R1,800 monthly levy on a property renting for R9,000 reduces your effective income by 20% before other costs are considered. Always calculate net yield after levies.
▸ Can a body corporate increase levies?
Yes. Body corporate levies increase annually and the board can issue special levies for unexpected major maintenance or legal costs. Before buying sectional title, always obtain a copy of the body corporate financials and check for pending special levies or litigation.
How to Use This Calculator
Enter details of two comparable properties — one sectional title, one freehold. Use real figures: get the actual levy from the seller's disclosure and actual rates from the municipality where possible.
Focus on net yield — not gross — as this is what you actually earn after costs. A high levy on sectional title can easily flip the comparison in favour of freehold. The calculator shows this side by side.