Two apartments in the same street can be worlds apart once you look behind the front door. The strata records tell you the real story.
When you buy an apartment you are buying into a shared building and a shared budget. The owners corporation decides on maintenance, repairs and rules. The way it has been run shows you what you are likely to pay for in future.
You or your solicitor can arrange a strata inspection report, and the vendor’s contract will include some strata information. Read it before you exchange, not after.
Look at the quarterly levies and how they have changed over time. Then look at the capital works fund, which pays for major repairs. Compare its balance with the plan for future works.
A fund that is too low can mean a special levy, a one off bill to every owner, when a big repair comes due. Check whether any special levies have been raised recently or are being discussed.
Read the minutes of recent meetings. They show the issues owners are worried about: leaks, concrete cancer, lifts, roofing, waterproofing, cladding or fire safety upgrades.
Find out whether there are any building defect claims or legal disputes underway, and whether major works are planned. Older art deco buildings in suburbs like Elizabeth Bay and Potts Point can be wonderful, but they need careful checking.
By laws affect how you live in the building. Check the rules on pets, renovations, flooring, parking, storage and short term letting. If you plan to renovate, find out what approval you will need from the owners corporation.
Before any of my clients buys an apartment, I go through the strata records with them and their solicitor and flag anything that affects the value or the risk. It is one of the most important parts of the job, and one of the most often skipped. If you are looking at an apartment, I am happy to talk it through.
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This guide is general information only and is not legal or financial advice. Always speak with your solicitor or conveyancer and your finance broker about your own situation.
This guide is general information only and does not take into account your personal circumstances. It is not financial, legal or tax advice. Please get independent advice before making any decision. See my terms and disclaimer.
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