Are you considering buying an apartment? Congratulations!
Apartments present many advantages over houses, including a lower entry price. Yet when becoming the owner of an apartment, you’ll also be required to follow certain rules and laws as you’ll be joining a community of residents.
As a result, you should always do your due diligence before buying an apartment to make sure you’re the right fit for this community, understand potential issues related to the building and get familiar with building maintenance fees.
To make it easier for you, we’ve highlighted below some of the main things you should ask from the body corporate before proceeding.
Request Strata Inspection Report
You should always ask for the strata inspection report. A strata inspection report is a full review of the Owners Corporation records. Before purchasing a strata-titled unit or townhouse, make sure to always request the strata report to have visibility over potential issues you might have to deal with. However, keep in mind that not all strata reports are created equal. There is no standard for the report quality, so it’s important to know that the quality of the information and level of detail will depend on the person in charge.
A good report should answer some of the questions below:
Is the body corporate raising enough money to keep the building running?
Is the body corporate saving enough for larger capital works?
Do they have current capital works forecasts? Did a quality surveyor draft it? And does it contain a table with a recommended fund balance for every year?
Is GST payable on levies, or is the current total income level close to the level where they’ll need to register?
Is there a water meter, bulk electricity, etc.?
Are there any building defects
Check the By-Laws
Before investing in a strata-titled property, you should always check the by-laws. By-laws can significantly impact your experience as an occupant since they regulate the common property’s use and the residents’ behaviour. As a result, make sure to familiarise yourself with both the body corporate by-laws and the state-based by-laws. Some of the most common by-laws examples include pet ownership, parking requirements, and noise levels.
Do Some Research on the Building
If you think you’ve found the right apartment or townhouse for you and your family, don’t forget to look at the bigger picture and check the building as a whole. Some key things you should pay attention to include parking areas, lifts, and any other common areas. Also, to improve your odds of investing in a great apartment in a well-maintained building, check the ratio of the owners to renters. If most occupants own their property, they’ll be more likely to look after the building.
Enquire about the Strata Fees
Strata-titled properties come with ongoing fees. These fees are allocated to maintaining the garden or courtyard, the building’s upkeep, common area maintenance, etc. Strata fees are not standard and can significantly vary depending on the building’s condition, cost of the cleaners, or the strata management’s efficiency.
Strata fees are an important part of investing in an apartment as they can make the difference between being able to afford the property or having to look elsewhere.