The developers of Le Domaine have created a wonderful mechanism to contain levy increases to below the level of inflation in the coming years. An ordinary levy is a payment that is made by a resident to the Body Corporate or Home Owners’ Association and which covers basic services. These include sewerage and the removal of garden refuse; garden and pool consumables; staff wages; external maintenance; services; insurance; security; armed response; external electricity (such as boundary walls); Telkom line rentals and internet subscriptions.

The Levy Stabilisation Fund falls outside of the ordinary levy and can be seen as a once off payment that is made into a specific account. This is then used for special projects and as a means of making sure that levies remain affordable. As Bezuidenhout explains, “A Levy Stabilisation Fund, such as the one at Le Domaine, is a separate fund that is created to ensure that levy increases are kept within the level of inflation.

It also enables the Body Corporate to accumulate capital to pay for items that require a major expenditure, such as a pipe bursting, therefore cutting back on the need to collect special levies. Le Domaine’s Levy Stabilisation Fund has been in place for a number of years and we are currently sitting on a very respectable reservoir of funds for use going forward.” Body Corporates and Home Owners’ Associations are non profit organisations and as such, any surplus in the Levy Stabilisation Fund remains the asset of the members of the organisation. The funds are used for the general benefit of the residents of the development.

Le Domaine’s Levy Stabilisation Fund is funded through contributions that are paid on registration of the transfer of a property. The monies are held in a separate interest bearing account and as Bezuidenhout comments, the benefits have already been seen by the residents in that “9% of the total levy requirement for 2007 was paid out of this fund and we expect that by 2010, the fund will be contributing at least 15% of the levies across the board.” Any unit that is sold within Le Domaine contributes 20% of the net profit of the sale to the Levy Stabilisation Fund. This translates into a 20% difference between the original purchase price of a unit as paid by the seller (in addition to conveyancy fees and other optional extras) and the subsequent selling price of the unit, less any selling commission.

A rough estimate on a property originally valued at R500 000 and now valued at R1, 5 million yields a Levy Stabilisation Fund contribution of R200 000. Levy Stabilisation Funds have a positive impact on the price and marketability of sectional title units that are for sale, as they demonstrate enormous equity within a development and provide a reassurance that levies will not become excessive, a worthy consideration when purchasing a new property. The seller is responsible for the fund contribution, with the rationale in mind that they have benefited in the past from other sellers making their contributions to the fund and thereby keeping their prior contributions lower.

This concept is becoming a generally acceptable practise for older purchasers within the South African property industry and is a unique and viable option to insure that homeowners do not feel drained under the current financial climate. Le Domaine is an upmarket gated community located in Inanda Rd, Hillcrest. Launched in 2002 by the Le Domaine Joint Venture Group, the estate has redefined the concept of active living for over 50’s and encourages a lifestyle characterised by health, companionship, security and care.

The northern villages of the development are sold out, with the remainder expected to be purchased in full by in the end of 2008. New additions to the estate include the Le Domaine Lodge and the world class Soins de Vie Frail Care Centre. This fund is a major plus when considering the purchase of a Le Domaine unit. Viva le Domaine, Vive Le Difference. --- Ends --- Words: 706 Note to the editor: Le Domaine’s lifestyle philosophy is for residents to enjoy healthy, active living in a secure estate.

It is the ideal place to for build strong relationships with other residents of the same age. Located in Hillcrest it is one of very few developments of its kind in South Africa, with facilities to cater for different needs and promoting easy access to a healthy way of life, with services ranking amongst the finest in the country. Le Domaine encourages residents to live life to the full and enjoy every moment.

Contact Information:
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