Levies: What Are They And Why Do You Pay Them


As a first-time home buyer, it is important to educate yourself of everything about owning a home. There is so much helpful information available about buying a house. But what happens after you buy a home and how does it impact your budget? One of the things that you may have encountered is levies. You are going to need to consider this additional monthly cost when buying a new home. 

So, what are levies and why do you need to pay for them? Keep reading to learn all about levies.


Caring For The Neighbourhood You Live In


When you move into a free-standing property in a residential neighbourhood, chances are you will only pay rates and taxes. But if you move into an estate, chances are that you would be looking at a monthly levy. We break down the costs and look at why you are paying levies.


What are levies?

Levies are used for communal needs such as guarding and security, the maintenance of the boundary wall and fence, security cameras or electric fencing, administration and general communal improvements and any other item the estate residents might share. A fund is created wherein the contributions will be used to facilitate the costs of looking after the communal grounds. You can inquire what each estate uses their levies for at any time from the Management Company.


How are your levies calculated?

Levies could be calculated as three separate items. The first is the participation quota which determines the area of the estate divided by the number of units within. This calculation will consider the size of the property to make sure that costs are divided fairly amongst the residents. 

The second calculation is called an exclusive-use levy. This is calculated per individual property. This might include the size of a private garden that is cared for by a service company employed by the body corporate.

Lastly, your estate or complex might ask for special levies. Special levies are comprised of anything that was not specified in the annual budget. In most cases, this would be used towards bringing a fresh new look to the estate. Special levies will always be specific and detailed so that you will know exactly what you are paying for.

These costs together will make up your total monthly levy.


What happens if you do not pay your levies?

Not paying your levies will make it difficult for the body corporate to manage the duties they are responsible for. This puts strain on the entire estate and can lead to various losses. These losses will include service companies and staff who care for the estate.

Each resident is contractually bound to contribute a designated amount to the levies. This means that if a resident regularly defaults, the body corporate may take steps to recover costs.


Instating levies helps every household within a complex or estate by caring for its communal areas. Paying your levies will go a long way towards ensuring that the area is well cared for. In most cases, this will also protect your investment by increasing the value of your property.


The Milkwood Townhouse Complex is a brand-new development in the idyllic Kuils River. This estate offers security for your family within a comfortable distance of Cape Town City Centre. Please contact one of our agents if you are interested in booking a viewing appointment. We look forward to hearing from you!

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