Paul's Property Buying Blog

Hello! Welcome to my blog. My name is Paul and this is blog is going to let you in on some of the best tips which will make buying a property a piece of cake. I am not a professional estate agent but I do have a few years experience of buying and selling property across several Australian cities. I started developing and selling properties when I inherited a large house which used to belong to my grandmother. I didn't have a clue how the real estate market worked so I called in a friend who works in the industry. He taught me everything I need to know.

What you need to know before investing in a strata development

Real Estate Blog

If you have thought about investing in a strata scheme for the first time but are confused as to what that involves and how it differs from conventional property purchases, then keep reading. Strata developments are a great way for people to purchase homes. The strata concept has proved to be so popular that it has been widely copied around the world, but there are still elements that can seem unusual to first-time buyers. Here is what you should know before committing to purchase a property which is part of a strata scheme.

You normally own your own lot

Strata developments vary, so it is important to read every part of the contract carefully, but generally speaking, with strata developments, you own your lot while the surrounding area is under common ownership. The common owner is normally a property corporation of which you become a part-owner by buying your lot. The boundaries of what you individually own could be the boundary walls of your property, or in the case of an apartment, everything between your floor and ceiling.

Common ownership has responsibilities

As a part-owner of the common land, you will be required to contribute towards the maintenance of the area. These costs are known as strata levies and will be in addition to all applicable taxes and rates you would normally expect to pay. In addition to the fees, there may be specific behaviour rules applicable to the strata scheme of which you will need to be aware. These rules could relate to how you care for your property, the level of noise you are permitted to make and if pets are allowed on the development.

Make sure you do your research

Since strata developments vary, you can't rely on what you think you know about them. It is essential that you carefully evaluate any scheme you are considering investing in. It can be helpful to engage a strata researcher to carefully examine the scheme before committing yourself. The researcher would be able to look at if the scheme has any outstanding litigation matters, if they regularly impose special levies or fees on homeowners and if the by-laws are restrictive. They will gather all of the relevant information together and present it to you in a detailed report to allow you to make an informed decision on whether or not the strata scheme is the right place for you to make your home.

To learn more, contact a strata development company.

Share

18 February 2020