As secure lifestyle estates continue to dominate South Africa’s property landscape, many buyers are encountering layered estates for the first time. These developments combine a master homeowners’ association with smaller sectional title schemes inside, creating attractive communities with extensive facilities. But with layered ownership comes layered levies - an often-overlooked cost that can significantly affect monthly expenses and long-term value.
READ: Top schools and prime locations make Pretoria East a property hotspot
Modern South African developments often feature layered estates - sectional title schemes within larger homeowners’ associations - offering security and shared amenities. But layered ownership means layered levies, something Antonie Goosen, principal and founder of Meridian Realty, says buyers must understand fully before signing an offer to purchase.
“We’ve seen a rise in gated communities where there’s a master estate with its own rules and levies, and inside it, sectional title clusters or apartment blocks with their own management,” explains Goosen. “If you buy there, you’re responsible for multiple levy structures.”
READ: 6 stunning homes in South Africa’s secondary towns
Typically, an owner will pay:
-
HOA levy: Goes to the master estate’s homeowners’ association to cover shared infrastructure - security, roads, landscaping, perimeter fencing, and amenities like clubhouses or parks.
-
Body corporate levy: Applies to your sectional title block or cluster and covers internal costs - building insurance, maintenance of shared walls, lifts, cleaning, and sometimes water or refuse removal.
“These are separate legal entities with their own budgets and rules,” Goosen notes. “So, you could be paying two levies each month.”
Quay 1 International Realty echoes this, explaining that levies in layered estates operate on two levels: the overarching estate levy, and, for sectional title owners, a sectional title levy on top.
“Every owner in the estate pays the estate levy, which covers costs like 24-hour security, access control, roads, lighting, landscaping, and estate facilities,” the agency notes. “If you also own in a sectional title scheme within the estate, you’ll pay a second levy to cover building insurance, shared repairs, internal gardens, and reserve funds.”
Budget scrutiny is key
Goosen stresses the importance of checking both sets of financials before buying.
“Ask for the latest budgets and AGM minutes. Check whether there are sufficient reserves for long-term maintenance and if special levies are planned,” he says. “Special levies can come as an unpleasant surprise if big projects like road resurfacing or roof replacement are needed.”
Understanding what’s included
Levies can differ widely depending on the estate.
“It’s important to know what you’re paying for and what remains your responsibility,” says Goosen. “A low HOA levy might seem appealing until you realise homeowners must maintain perimeter fencing or road repairs themselves. Conversely, higher levies could include more services, reducing out-of-pocket costs later.”
Quay 1 International Realty adds that while layered levies can appear high compared to stand-alone properties, they often provide good value. “They ensure the estate remains secure and well managed, while sectional title levies address the specific needs of those residents. Freestanding homeowners usually pay only the estate levy, while sectional title owners contribute to both.”
READ: The value of a view: Why premium properties with scenic outlooks hold their worth
Rule compliance
Each entity carries its own constitution and conduct rules. “You’re agreeing to follow both sets of rules,” Goosen explains. “Understand restrictions on pets, renovations, and rentals. If there’s conflict between HOA and body corporate rules, the master estate’s usually takes precedence.”
READ: Buying property with friends or family: What you need to know
Resale impact
Levies also influence long-term property value. “Well-funded, well-run estates attract buyers and support resale prices, while poorly managed ones with escalating special levies can scare buyers away,” Goosen advises. “A slightly higher but stable levy is better than a low levy with no reserves.”
“Layered estates offer lifestyle and security benefits, but buyers must look beyond the show house,” says Goosen. “Understand how levies work, what they cover, and how financially sound the management is. That’s how you avoid surprises and protect your investment.”
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
