Living in a complex comes with… well… complexities. Owners who serve on the body corporate regularly face important decisions that they have to make on behalf of the occupants of the complex. Obviously all members of a sectional title scheme are consulted when major decisions have to be made, such as maintenance projects, building repairs and improvements.

One of the major considerations when it comes to these decisions is financing. Many sectional title schemes do not have sufficient reserves to cover these projects when it comes time to carry them out. Spotting this trend, architect, business leader and trustee in sectional title body corporates, Michael Magner, launched Advantage, a company that offers affordable loans tailored to the exact needs of sectional title scheme projects.

Mike is the husband of former CN&CO chairperson, Colleen Magner.

“The Advantage project loan is a property finance facility that enables body corporates of sectional title schemes to make necessary investments in property maintenance and improvements,” he says. “The project loan facility gives body corporates the ability to better manage their finances by distributing owners’ levy costs more evenly over time, ensuring reserve fund stability, and making building maintenance and property improvements more affordable.”

How it works:

  • Any body corporate of a registered sectional title scheme can apply.
  • Project loan size can range from R250 000 upwards depending on the project and body corporate finances.
  • A project loan can run for between 6 and 36 months depending on the project and affordability.
  • The project cost and project loan need to be approved by special resolution passed by the body corporate.
  • On approval of the project loan, funds are paid to a project escrow account on behalf of the body corporate for exclusive use on the project.
  • Unit owners’ portions of the project loan are billed in the levy statements as a special levy and paid monthly for the duration of the project loan.
  • Unit owners can elect not to participate in the project loan by settling their portion of the project cost as a lump sum special levy paid into the project escrow account before the project loan commences.
  • Unit owners can settle their portions of the project loan with one month’s written notice without penalty.
  • A suitable professional is appointed by the body corporate to be the principal agent on the project to support good planning, cost management and oversight of the building project.
  • Professional fees for the project can be added to the project loan.
  • A project loan setup fee is charged to cover the costs of this administration and can be offset by adding it to the project loan.

There are some great advantages to an Advantage project loan:

  • Access to competitive project loan lending Interest Rates (T&C’s apply).
  • Access to preferred professional service providers for maintenance projects.
  • Access to step-by-step guidance for projects and loans from inception to completion.
  • Access to advice and template legal documents for Special General Meeting preparation.
  • Flexible loan terms and settlement according to individual owners’ requirements.

For more information or to make an application, visit