Little boxes on the hillside,
Little boxes made of ticky-tacky …
And they all look just the same.
Little boxes on the hillside,
Little boxes made of ticky-tacky …
And they all look just the same.
The phenomenon that inspired the hit song of the 60s, 'Little Boxes' hit the South African scene only two decades later. Since the Sectional Titles Act came into being in 1986, vast tracts of the landscape have been obliterated by block after block of “little boxes” with identical rooftops.
Basically a sectional title development consists of land divided into privately owned units (normally a flat or house) that each owner is responsible for. All section owners are members of a Body Corporate and must abide by certain regulations, like keeping the outside of their buildings uniform.
The rationale behind the proliferation of sectional title schemes is that they enable a greater sector of the population to achieve home ownership. The reality, however, is that sectional title schemes have predominantly become the domain of investors and renting a home remains the reality for most of those living in them.
The importance of having a home as opposed to being homeless is beyond question. But why is property ownership vaunted in our society – a society in which it is beyond the reach of most?
A special report in October's Property Junction defines home ownership as “the cornerstone of wealth creation”. Primarily, it is an investment in an asset of ever-increasing value that offers the prospect of good returns. It adds to one’s financial worth and can serve as equity to borrow against in order to create further wealth, whether by purchasing further assets or by increasing the value of one’s property by improving it.
Above all, it offers security of tenure, in that one can never be forced to move against one’s will, with nothing to show for the many thousands of rands one has paid for the privilege of renting. Investing one’s earnings in renting increases only the landlord’s wealth.
A further advantage of purchasing rather than renting a home is that after just a few years, the bond instalment on a three-bedroom house is likely to be lower than the rental asked for a one-bedroom flat, with the benefit to one’s monthly budget increasing over time.
But with all the advantages of home ownership come costs and responsibilities that renters are exempt from.
There is indeed value in being free to shrug off burst geysers, leaks, rotting timber and rising damp as the landlord’s responsibility. When problems arise with the property or one’s financial or personal circumstances alter, the home-renter also has greater freedom, both physically and financially, simply to pack up and move wherever they consider more convenient, desirable or affordable.
Is investing in immovable property therefore the most desirable option for most South Africans? Or would the ideal form of home ownership be to buy a caravan instead?
In a country where migrant labour is set to remain the reality for many, there is much to be said for owning the roof over one’s head along with the freedom to move its location. And how much more of the landscape’s beauty would be retained without the need for kilometres of either squatter camps or sectional title schemes?
