Education
2024 WCED Back on Track
Consumer Studies
Grade 12
JIT Session 6: HOUSING and INTERIOR
PRESENTED BY: A.GREEFF
10 JULY 2024
Grade 12 JIT SESSION 6 :
HOUSING
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SESSION 6
SESSION 7
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T TO
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CONTENT
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COVERED
IN THE
EXAM
GUIDELINE
S
EXAM GUIDELINES
EXAM GUIDELINES
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GRADE
10
NB!!!
PAST KNOWLEDGE
COVERED AND HOW
IT FITS IN WITH GR
12
GRAD
E 11
NB!!!
PAST KNOWLEDGE
COVERED AND HOW
IT FITS IN WITH GR
12
IN • MASLOW’S
G
NN TRO
S I HIERACHY
U DU • GR 10 & 11
H O CT
IO REVISION
• HOUSING TYPES
• FACTORS
KE IT INFLUENCING
M A BL
A TA CHOICE
REL !!
E! • CAREERS
B
GRA IO •
TENT HISTORY
A T
N
HOUSING
THREE DIFFERENT HOUSING
OPTIONS
ACQUISITION OPTIONS:
RENTING
BUYING (Full-title or sectional
title)
BUILDING
FACTORS TO CONSIDER WHEN
CHOOSING A HOUSING OPTION
Finances –socio-economic
status
Lifestyle of the family
Size of the family
Stage in the life-cycle of the
family
Property location
RENTING:
The payment a tenant makes, usually monthly
to a landlord for the right to live in that
property.
Tenant/lessee/renter – the person renting a property
Landlord/lessor – owner who rents out the property
Any type of house can be rented out e.g. flat or duplex.
Renting units can be furnished (more expensive) or unfurnished
RENTING
An agreement between the landlord and the tenant
should be in place.
This agreement is a legal document called the lease and
gives the tenant certain legal rights and responsibilities FI
for the duration of the lease. (RENTAL CONTRACT) N
Deposit amount is required - upfront payment A
The purpose of the deposit is to protect the landlord from N
financial loss in case of damage. CE
The deposit must be paid back to the tenant when they
move out.
Rent is paid in monthly instalments in advance.
Before occupation the tenant and the landlord should
inspect the property together to identify any defects and
make a list.
RENTING: CONTRACTUAL RESPONSIBILITIES
LEASE AGREEMENT
Name and address of property
Signatures
Dates – signed, occupation/when to move
in and period/ how long
Details about renewal LANDLORD
Rental amount responsibilities
Clause indicating rights & HOME OWNERS
INSURANCE
responsibilities of LIFE
INSURANCE/MORTGA
both parties GE PROTECTION
INSURANCE
RATES
Tenant pays household insurance, water, MAINTENANCE
electricity, municipal services as agreed
INSURANCE:
BOND/MORTGAGE PROTECTION INSURANCE
This life insurance to settle the home loan if LA H
something unexpected should happen to the N O
owner. M
DL
So the house becomes paid up upon death of E
O O
the owner.
The financial institution approving the home R W
loan will require this. D N
COMPREHENSIVE HOMEOWNERS INSURANCE E
Short-term insurance cover that protects the R
structure and permanent fixture in your
house against fire, flooding and other
disasters.
HOUSEHOLD INSURANCE TENAN
Insurance that covers the contents of the
T
home e.g. furniture, clothing, appliances
against fire, theft or damage.
RENTING: ADVANTAGES &
DISADVANTAGES
ADVANTAGES DISADVANTAGES
More affordable option for those Do not benefit or increase wealth as
who cannot build or buy payments go to the landlord.
Conditions of contract are known to Tenants have no guarantee that their
both parties from the beginning lease will be renewed.
Rent amount is fixed – not changed Rent usually increases annually
by interest rates
You can run a business from a rental Tenant must comply with the
property with permission of landlord conditions of the contract and get
& municipality permission for any changes.
Affords you greater freedom of Cannot sell the property to make a
movement after giving due notice profit as you are not the legal owner.
Landlord is responsible for You cannot use the property as a
maintenance and insurance of the security for a bank loan.
property
Tenant does not pay land and Money spent on the property to make
property tax (rates) changes may not be reimbursed.
LEASE
TENA
AGREEMEN
T NT
DEFINE
EXPLAIN
DISCUSS
Terms LANDLO
RD
DEPO
SIT
DIFFERENTIA
TE
HOUSEHO
LD RENTIN
INSURAN G
CE
Need a vacant plot to build onBUILDING
House plans must be drawn by a draughtsman or
architect.
Architects are expensive but make invaluable
contributions with regard to the design layout and
orientation of the house.
Plans must be submitted to the local municipality
for approval.
Once approved you need the services of a
builder/contractor with a good reputation.
Make sure the builder/contractor is registered with the
National Home Builders Registration Council
(NHBRC)
Needed finances for building can obtained by applying
for a home loan/mortgage.
Building inspectors will regularly inspect the building
operations
Once completed the house must be registered with the
BUILDING: CONTRACTUAL
RESPONSIBILITIES
CONTRACTUAL RESPONSIBILITIES:
Legal contract between builder
and owner should include:
Breakdown of costs
Detailed description of materials
& finishes
Exact dimensions of the house
Dates & methods of payment
Completion date
Guarantees provided by the
builder
A clause for cancellation
BUILDING: ADVANTAGES &
DISADVANTAGES
ADVANTAGES DISADVANTAGES
Can be cheaper than buying if you It could cost more than buying
are an owner-builder
Owner can design the house to their Overseeing the process can be
own needs and likes (e.g. light complicated and stressful and you
fittings, floor coverings) not not sure what the end product will
inheriting old problems look like
Latest designs and technologies can Run a risk of faulty construction and
be used design
House can be completed according to Can take longer than anticipated due
owner’s own schedule to delays
If funds run out, the building work There may be added costs and
can be stopped for a while additional work after construction
e.g. landscaping
New houses are generally built in Required to pay local municipality
new areas, this can increase the rates and taxes as well as for
resale value services
Can be personally satisfying for the Planned house may not fit in with
Buying
TWO OPTIONS WHEN
BUYING
FULL TITLE OR FREEHOLD PROPERTY SECTIONAL-TITLE PROPERTY
This form of ownership the person This ownership the buyer
who buys the property becomes the becomes the legal owner of a
legal owner of the entire property. section (unit) in a complex and
This includes the land and all the share all common areas e.g.
pool, lifts, passages, garden
structures on it. areas, braai areas etc.
The property is individually/couple Can be units in a housing
owned complex or a block of flats
B Property can be bought cash or using a home loan.
u Home loans/bonds/mortgage can be obtained from banks
or other financial institutions
y Home loans/bonds/mortgages are money borrowed from the
i bank or financial institution and then paid back in monthly
instalments over a fixed period of time (20-30 years) with
n interest.
g Required to pay a deposit – down payment at time of
purchase.
Once a consumer finds a suitable property then they can put
in a written offer to the owner of the property. For
This is called an offer to purchase. sale
This document sets out all the conditions for purchase
(price of the property and what is included)
Once the seller accepts the offer to purchase it becomes a
legal purchase agreement which is referred to as a deed of
sale/contract of sale/agreement of sale.
FINANCIAL RESPONSIBILITIES
CONTRACTUAL
RESPONSIBILITIES WHEN
BUYING A PROPERTY
A buyer will submit a written offer
to purchase to the seller to
indicate the amount they are
offering to pay.
Once both the seller and the
buyer signs the offer to purchase,
it becomes a contract, called the
deed of sale/contract of
sale/agreement of sale.
This is a lawfully binding
document that includes all the
terms and conditions of the sale.
CONTRACTUAL
RESPONSIBILITIES
DEED OF SALE/CONTRACT OF SALE/AGREEMENT OF
SALE CONTENT:
Correct names and addresses of the seller and buyer
Address, clear description and purchase price
A stipulation that the transaction is subject to a bond
being obtained within a set period – if not fulfilled
then the sale will lapse
Date of occupation
A stipulation that the seller is responsible for the
estate agent’s commission, beetle- and electrical
certificates.
A stipulation that the buyer is responsible for all other
expenses
Occupational rent payable by the buyer if the transfer
is not done by the date of occupation.
A list of repairs to be done prior to transfer.
A list of items to be removed and of those to remain
e.g. blinds, pot plants, curtains etc.
A clause that stipulates the penalties should one of
FREEHOLD/FULL TITLE PROPERTY: ADVANTAGES &
DISADVANTAGES
ADVANTAGES DISADVANTAGES
The buyer becomes the legal owner of Initially it is more expensive to buy
the property instilling a sense of then to rent
security.
The owner can make changes to their The owner is responsible for insurance,
property safety, repairs and maintenance.
The property can be used as a security Responsible to pay rates and taxes to
for a bank loan. the municipality.
It is a good investment as the value of It could be a bad investment if the area
the property increases over time. deteriorates and you don’t make a good
profit.
The property can be sold when the Could be difficult to sell the property if
markets are favourable and make a the owner needs to move unexpectedly
profit.
Can be used to run a business from or If the property is sold, capital gains tax
rent out the property or room to make a must be paid on the profit of the sale.
profit.
BOND
PROTECTI
FULL-TITLE
ON
PROPETY
INSURAN
CE
OFFER
Terms DEED OF
SALE
TO
PURCHA
SE
HOME
OWNERS MORTGAG
INSURAN E BOND
CE
QUESTION 1: SHORT
QUESTIONS
SECTIONAL-TITLE
PROPERTY
This ownership the buyer
becomes the legal
owner of a section
(unit) in a complex and
share all common
areas e.g. pool, lifts,
passages, garden areas,
braai areas etc.
Can be units in a
housing complex or a
block of flats
SECTIONAL-TITLE
PROPERTIES
All owners become part of the body corporate.
This is the body that controls, manages and
administers the complex or block.
Elected trustees are responsible for the day-to-
day running of the complex or block of flats.
Unit members (owners) are required to pay levies
to the body corporate
The levy is used to pay:
rates & taxes,
insurance,
repairs & maintenance of common areas,
wages & salaries of staff and
water and electricity used for common areas.
SECTIONAL-TITLE PROPERTY: ADVANTAGES &
DISADVANTAGES
ADVANTAGES DISADVANTAGES
The buyer becomes the legal owner of Owner must abide to the rules of the Body
the property instilling a sense of corporate.
security.
Provides greater security than living Permission must be obtained from the
in a free standing property and less Body Corporate & municipality for changes.
maintenance.
The property can be used as a You have to pay a levy to cover cost like
security for a bank loan & can be property rates, maintenance, insurance
rented out etc.
It is a good investment as the value Levy increases annually with the increase
of the property increases over time & in inflation rate
can be sold for a profit.
Fewer responsibilities as the Body Not as private as full-title properties as
Corporate control and manage the common facilities are shared & close
common areas proximity
You enjoy the use of common If the property is sold, capital gains tax
facilities and do not have to maintain must be paid on the profit of the sale.
them.
You can leave it in you will for your Restricted mobility as it might be difficult
BODY SECTION
CORPORAT AL TITILE
E PROPERT
Y
OFFER
Terms LEVIES
TO
PURCHA
SE
MORTGAG
RATES E BOND
QUESTION 5: HOUSING
E XA
MP
RAC
TIC
E
THANK YOU
Education
THE END
10 JULY 2024
