03 February 2021

The Importance of the Correct Calculation of Levies

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The Importance of the Correct Calculation of Levies

Best wishes for 2021! We all know that there are still challenges ahead but I am confident that we will overcome these difficulties soon.

The purpose of this communication is to bring to your attention the importance of the CORRECT CALCULATION OF LEVIES and the policy in this regard pursued by Summercon.

There are many developers, sadly, who under-quote at point of sale on the cost of levies and all this achieves is loss of value and unhappiness on the part of purchasers down the line.

For your information, levies are comprised of the items set out in the table below:

Table example of levies

Each item is carefully analysed by Summercon before the launch of any new development. We have over 30 years of experience in this regard and it is our policy that all costs in the forward maintenance and management of a Summercon development are CORRECTLY budgeted so that the investment by our clients is properly protected for the years to come.

The importance of this is I am sure obvious to all: when the time comes to sell or a new tenant is sought, each estate should be pristine in its landscaping, guardhouse, clubhouse and surrounds, exterior of buildings and roof structures. This cannot be achieved if there is inadequate funding and if the levies are inadequately budgeted from day one.

Funding Shortfalls

These have one of two consequences:

Firstly, a special levy will have to be raised which always causes difficulties with owners as such levies are not budgeted for.

Secondly, if a special levy is not raised the development shall deteriorate and, accordingly, so shall the value of each apartment.

We are proud at Summercon that our history of developments has demonstrated that our policy of CORRECTLY budgeted levies has borne fruit for all our purchasers.

Our developments stand out, we believe, from our competition, particularly as the years pass.

They remain well landscaped, well maintained, freshly painted and accordingly retain and grow their value.

Your sincerely,
Peter Blanckenberg
Summercon Director

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