What are the pitfalls of buying in strata title unit?
The 10 tips
Are they are pitfalls or issues you should be alert to when purchasing a strata title unit?
From our experience we believe there are 10 tips that we are happy to share when seeking to buy a strata title apartment.
How well is the building or strata title complex is running? One of the best tips we can give you is check the garbage- bin room. Is it clean and tidy? Any rubbish lying around? Garbage is an important factor in a community living environment and if the garbage room is clean and fresh smelling then you can feel a bit more comfortable that the strata committee is on the job.
How many apartments are rented or owner occupied? This is a significant aspect to the running, the care and maintenance of the building. If the proportion of the building are investment owners is greater that owner occupied then that is a warning bell to pay attention and should lead you to research the strata roll.
Make sure you inspect the Strata Roll: This an excellent opportunity to read though the strata rolls. A Strata Roll is a document and registrar which details and outlines any major building and strata issues that need to be attended to or have been attended to. It will bring to your attention if there have a special building repairs works that require a special levy. It will also details any other building problems that may need to be monitored. We at Kathryn Hall Agency always advised our buying clients that they should get their legal representatives to order a strata roll inspection. There are some good Strata Roll Inspection Companies around that for a fee will inspect the strata roll and give you a report, highlighting any issues that need attention.
Gardens and exterior: Have a good look at the gardens. Are they neat and tidy? Do they look like they need some work? This is often another good indicator of how the strata manager is running the complex.
Does the building have a Strata Managing Agent? Most strata title apartments have a separate Strata Title Management Company to run the building. Google the company and do some research to see if they are well regarded.
Does the building run their own strata? Be aware that you really need to look very carefully at the strata roll and how the group of owners are running their building. From experience if the owners are running their own strata you need to be careful as a purchaser and be confident that they have all the strata management requirements in place.
Are the windows and balconies compliant? Legislation has recently changed and the requirements for both balconies and windows all need to be upgraded to OH&S standards. Once again the strata committee or the Strata Managers may have this information available.
How much are the strata levies? Often a building can appear to be a great purchase price just double check to compare their outgoings. From experience we have found that those buildings with a lift can have high outgoings.
What is the entrance foyer like? This is an excellent introduction to the whole building. Is it clean and tidy? Are there any maintenance issues? Are the windows and floors clean?
Get informed: We recommend the book “Strata Management in NSW “ by Gary Bugden, published by Wolters Kluwer and often gift this to our clients who have purchased an apartment through us. An excellent book about how to managed and understand the Strata Title ACT, how to run a strata management committee and everything in between.
Buying property has a number of challenges. And buying an apartment or strata title unit can have a high number of issues that some buyers are unaware and could have some serious financial repercussions.
A Buyers Agent can guide you through the purchase process and work with you in order to have a complete picture of what that particular strata unit and complex offers.
At Kathryn Hall Agency we take on that detective role. Help and guide you through the process to give you confidence and peace of mind that no stone is unturned and we are there on your side.
Give us a call on 02 9918 9568 or contact us at email@example.com
DISCLAIMER: The information in this article is of a general nature. While care has been taken preparing this information Kathryn Hall Real Estate does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any other purpose that the article may be used. Kathryn Hall Real Estate accepts no liability for any loss or damage (whether caused by negligence or not) resulting from use of information.