First-time buyer rates are at an all-time high, with more and more young people taking the plunge and starting their property investment journey. “Now is the time for young investors to equip themselves with the necessary knowledge when embarking on their first-time home purchase.” Pearl Scheltema, CEO of Fitzanne Estates, explains.
Protecting your investment within sectional title schemes
Sectional Title Schemes offer first-time investors a good option when choosing a property, as many of the maintenance headaches are covered by a monthly levy: “Maintenance in Sectional Title Schemes is regulated by the Sectional Titles Schemes Management Act 8 of 2011 (“The STSMA”) which provides that the body corporate must maintain the common property while unit owners must each maintain their own section,” Scheltema explains.
As an owner in a Sectional Title Scheme, you are automatically a member of the body corporate. This means that you qualify to be nominated as Scheme Executive. Scheltema elaborates: “Scheme Executives, with the assistance of the appointed Managing Agent, of a Sectional Title Scheme, is in charge of running the day-to-day operations of the scheme.” It is a crucial role within the Scheme and one that must be performed correctly.
It is also a great opportunity for young investors. “Being a Scheme Executive is time-consuming, and comes with immense responsibility, but it can be very fulfilling. You are protecting your investment and taking positive steps to improve the quality of life for all in the Scheme,” says Scheltema.
Remember that the value of your individual property within the Scheme is largely linked to the maintenance and sustained value of the Scheme as a whole. This means that, should the body corporate not fulfill its duties and not maintain the Scheme as it should, your investment loses value in the eyes of potential tenants or buyers. Even more reason to play an active role in the management of your investment!
Knowledge is power.
The key to being a successful Scheme Executive is having access to the necessary knowledge and tools. Scheltema explains the value of Scheme Executive Training for investors: “Whether you’re a first-time homeowner or seasoned investor, the knowledge gained through Scheme Executive Training will give you the foundation to make educated property decisions going forward."
Building wealth through smart investments.
When researching property investment opportunities, it is crucial to inform yourself of the necessary regulations, scheme-specific rules, responsibilities of each party, and understanding what your rights as owner within a Scheme would be.
This information is not always apparent when first entering the real estate market. Scheltema is passionate about bridging the gap and sharing these and more insights with investors starting their journey as scheme executives: “Training offers you so many lifelong benefits. It’s our goal to open the door to a whole new world of opportunities and put you on the path to success. ”Find out more about the accredited Fitzanne Estates Scheme Executive Training course, a comprehensive and flexible online curriculum that equips investors with the necessary tools to manage their Scheme efficiently and profitably.