Understanding the difference between Full Title and Sectional Title properties

Buying a home is one of the biggest financial decisions you will ever make. Understanding different types of titles associated with properties is an important part of the process. This article will discuss the difference between full and sectional title properties, helping you to make an informed decision when it comes to buying a home. Whether you are looking for a suburban family home with a yard or a city apartment with full amenities, understanding these different property titles will help ensure you find the right one for your needs.

Full Title properties

Owning a full title property means you have complete ownership over the land and the building on it. This is typically the case with single-family homes in suburbs, where homeowners have their own yard and are responsible for maintaining the exterior of the property as well as the building itself. Some advantages of full title properties include:

• Greater privacy;
• More control over the property;
• More potential for customization and renovation; and
• Potential for a higher resale value.

However, owning a full title property has its own disadvantages which includes:

• Higher maintenance costs: as a sole owner, you are responsible for all maintenance which includes costs associated with landscaping, repairs and more; and
• Lower potential for rental income: if you are looking to rent out part of your property for additional income, full title properties generally offer less potential for rental income compared to sectional title properties.

Sectional Title properties

With sectional properties, you own a specific portion of the land, building or complex. Example includes flats, townhouses, and duplexes. Some advantages of sectional title properties include:

• Lower maintenance costs: the costs of maintaining common areas and exterior maintenance are typically shared among all owners in the sectional scheme; and
• Shared amenities: sectional title properties often have shared amenities like pools, gyms, and community areas pre-built.

While sectional title properties have their advantages, there are also some potential disadvantages co consider:

• Limited control over the property: as a sectional title owner, you will need to adhere to the rules set by the body corporate, which can limit your ability to make changes or renovations to your property; and
• Less privacy: with shared common areas and neighbours in close proximity, sectional title properties can offer less privacy compared to full title properties.

Understanding the difference between full title and sectional title properties is important when considering your next home purchase. Both have their advantages and disadvantages, so it is important to consider your lifestyle and needs before deciding which type of property is right for you. Whether you are drawn to the privacy and control of a full title property, or the shared amenities and lower maintenance costs of a sectional title property, finding the right property for your needs will help ensure you enjoy your home for years to come.