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Water wise sectional title schemes run less risk of cash flow problems
19 April, 2013
The recent celebration of World Water Day has raised awareness of the need to conserve water and with that awareness to save. The best way to monitor water usage in sectional title schemes is to install prepaid or individual water meters, says Propell executive director, Johann le Roux.
Water costs in sectional title schemes can often be one of the body corporate’s largest expenses, he said, and if the accounts get out of hand, there is a chance the municipality can cut services to the scheme.
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Financial security for sectional title schemes important
15 April, 2013
Financial insecurity in sectional title schemes can be caused by various factors, says Johann le Roux, executive director of Propell, and these, once identified should be dealt with swiftly to avoid problems.
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In an emergency situation, sectional title schemes should have a backup facility if funds are needed
15 March, 2013
There are sometimes situations that arise, where a lift in a sectional title scheme might break, a water pipe bursts or during a terrible storm it is found that sections of the roof need repairing straightaway and there is a risk of major damage to the building, says Johann le Roux, executive director of Propell, a company that provides financing to bodies corporate and operates throughout South Africa.
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Individual water meters for ST units
16 October, 2012
Water costs, in most cases, are a body corporate’s single largest expense. This is mainly due to bulk water meter systems being installed in most developments pre-2004.
Often non-payment of levies by tenants or owners leads to the body corporate being placed in a difficult cash flow position where they are unable to pay municipal rates and water costs for the scheme; which in turn can lead to water being cut off for the entire building due to the non-payment of only a few tenants or owners.
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Heuwelsig Estate increases security & decreases debt
September, 2012
Heuwelsig Estate in Centurion recently enlisted the help of Propell with their levy funding products in dealing with the debt of replacing a deficient security access system left behind by the developers. As the Estate was so young and did not have reserve cash, the access system was originally financed in an unfavourable way via a different company in 2010. “This financing transaction saw the assets on an operational lease over 10 years, with a 10% escalation annually. This would have seen equipment with a cost of approximately R4mil costing the Estate a whopping R13m after the ten years. To add insult to injury, the assets would never become the property of the Estate and the Estate would have to insure and maintain this asset which, coincidentally, only has a 5 year life expectancy,” explained Marko van Wyk, General Manager of Heuwelsig Estate.
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Arrear Finance Competition Winners
September, 2012
Congratulations to our Arrear Finance competition winners:
Leigh Maingard from Diamond Property Management
Corr Breedt from Olivedale Property Management
Don’t delay, sign your Bodies Corporate up for arrears finance today!
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Durban's Barclay Mansions refurbished
Published: Aug 16, 2012 Posted by: Property 24
The Barclay Mansions property in Durban’s South Beach has been renovated restoring it to its former glory, a project that took two years. The project was a combined effort of the property trustees along with Harcourts DRM and Propell Levy Finance...
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Propell offers a new overdraft facility product to the bodies corporate market
Published: August 14, 2012
Following on from the successful launch of their Arrears Funding Product, which has been very well received by the market, Propell, South Africa’s leading levy funding and collections company, has launched their Overdraft Facility Product to Bodies Corporate. “This product has been developed as a safe guard for Bodies Corporates to cover any future costs they have not accounted for or are unaware of,” says Johann le Roux, Executive Director of Propell. “It’s a product that you can sign up for and possibly never use, but if the need arises suddenly for funds, you are able to draw on them at a moment’s notice.”...
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Propell adds to their financing product bouquet to bodies corporates
Published: August 14, 2012
Propell, South Africa’s leading levy funding and collections company has added an additional product offering to their existing levy financing products so as to position themselves as niche credit providers to all segments of the Bodies Corporates market. “Our product range and extensive experience in this industry allows us to offer effective service, ensuring financial sustainability to schemes and peace of mind to owners and trustees,” says Johann le Roux, Executive Director of Propell...
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Unpaid sectional title accounts put municipalities under pressure
Published: July 31, 2012 Posted by: SA Property News
Many municipalities throughout South Africa are under financial pressure due to non-payment or late payment from households for municipal services rendered. Since sectional title properties are the fastest growing residential sector in SA, it is safe to say that this sector is a major contributor...
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Insurance for Homeowner Associations
Published: Jun 29, 2012 Posted by: Property 24
When considering insurance for community living, most people only think of Sectional Title Schemes where the Body Corporate has a legal obligation to insure all common and public property. However, Home Owners Associations (HOA), although not legally governed by an act like the Sectional Titles Act, also require insurance for all common areas shared within the HOA...
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HOA penalty levies for not building
Published: Jun 20, 2012 Posted by: Property 24
While buying a piece of land to build your home on in a security estate or gated community may seem like a dream come true to many people, make sure that you read all of the Home Owners Association (HOA) rules and regulations before signing on the dotted line...
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Important Questions you need to ask before buying into an HOA
Published: Apr 18, 2012 Posted by: Property24
Gated-communities and private estates have become common place in South Africa mainly due to their perceived feelings of added security and safety. What most people might not realise is that each of these communities and estates are ruled by a Home Owners Association (HOA) that has their own set of rules and regulations with regards to what can and cannot be done...
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advice for landlords – the buck stops here
Published: May 9, 2012 Posted by: Property Junction
Although access to bond finance is easing up, most property analysts predict that the demand for rental property will continue to rise this year – and that buy-to-let investing will increase as returns improve...
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administrators and bodies corporate
May 2012
Whilst the majority of bodies corporate around South Africa are run by well meaning, hardworking trustees; there are select schemes that are being unscrupulously run to the detriment of the owners involved. In situations like this members of the body corporate or creditors are entitled to apply legally to have an administrator appointed to run the scheme on their behalf...
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do's and don'ts of trustees in sectional title schemes
by Johann le Roux, Executive Director of Propell
So you have been elected as a trustee of a Body Corporate! Congratulations! The members of your Body Corporate obviously have confidence in your integrity and ability. The Sectional Title Act requires that all executive functions and powers of a Body Corporate be performed by the trustees. This does not mean that you are the highest authority...
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what you need to know when buying into a sectional title scheme: part 1
by Johann le Roux, Executive Director of Propell
Sectional title property ownership is increasingly popular and today there are over 50 000 schemes, totalling more than 800 000 individual units in South Africa. The concept is tightly regulated under the recently amended Sectional Titles Act - legislation covering every aspect of sectional title ownership - and all owners and tenants must be aware they have very specific obligations and responsibilities that are governed by law...
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what you need to know when buying into a sectional title scheme: part 2
by Johann le Roux, Executive Director of Propell
When buying a unit within a sectional title scheme it is imperative that you request documentation on the affairs of the scheme itself prior to finalising your unit purchase...
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