What to Know Before Buying a Strata Property
Buying a strata property is different from purchasing a standalone house. Understanding these differences can save you time, money, and potential frustration down the line.
What is a Strata Property?
A strata property is a building or collection of buildings where individuals own their units (lots) and share ownership of common areas like gardens, pools, and hallways. This setup requires cooperation and adherence to shared rules known as by-laws.
Key Considerations Before Buying:
Understand the By-Laws:
Why It's Important:
By-laws govern what you can and cannot do within your unit and the common areas.
Action Step:
Obtain and read the by-laws to ensure they align with your lifestyle - especially concerning pets, renovations, and noise restrictions.
Review Financial Statements:
Why It's Important:
Financial health indicates how well the property is managed and any potential financial obligations you might inherit.
Action Step:
Examine budgets, expenditure reports, and the capital works fund to assess financial stability.
Inspect the Strata Plan:
Why It's Important:
The strata plan outlines the boundaries of your lot and common property.
Action Step:
Verify what parts of the property you'll own exclusively versus what is shared.
Consider Strata Levies:
Why It's Important:
Levies are fees owners pay for the upkeep of common areas and the building's maintenance.
Action Step:
Find out the current levies and if any special levies are planned for significant upcoming works.
Assess the Strata Management:
Why It's Important:
Effective management ensures the property is well-maintained and that issues are promptly addressed.
Action Step:
Research the reputation of the strata manager and review minutes from recent meetings.
Why These Steps Matter
Avoid Unexpected Costs:
Understanding levies and financial obligations prevents surprise expenses.
Ensure Lifestyle Compatibility:
By-laws can affect daily living; knowing them ensures the community fits your lifestyle.
Protect Your Investment:
Assessing the property's management and financial health safeguards your investment's value.
Q&A
Can I renovate my strata unit as I wish?
Renovations often require approval from the owners corporation, especially if they affect common property or the building's structure. Always check the by-laws and seek permission before starting any work.
What are special levies, and should I be concerned about them?
Special levies are additional fees charged to owners for unexpected expenses or significant projects not covered by regular levies. They can be substantial, so it's essential to know if any are planned.
How do I know if the strata scheme is well-managed?
Review the minutes from owners corporation meetings, financial records, and speak with current owners if possible. A well-maintained property and transparent communication are good signs.
Making an Informed Decision
Purchasing a strata property involves more stakeholders and shared responsibilities than buying a standalone home. By doing your due diligence, you ensure the property not only meets your needs but is also a sound investment.
Tips for Buyers:
Engage a Professional:
Consider hiring a solicitor or conveyancer experienced in strata properties.
Get a Strata Inspection Report:
This report can reveal issues not immediately apparent during a viewing.
Think Long-Term:
Consider how the strata's management and financial health will affect you in the future.
Explore our sample condo and strata document review report to discover how we highlight the potential and concerns of properties, aiding both real estate professionals and buyers.