BEFORE YOU BUY INTO A STRATA SCHEME…WHAT YOU NEED TO KNOW

For newcomers, Strata ownership may be an adjustment. Some people rely on strata and all the benefits that come with owning part of a strata scheme. Others find it overwhelming and resist the idea of shared control. At Empire Estate Agents, we can confidently say that the advantages of being part of a strata scheme can easily outweigh the disadvantages.

Our strata owners enjoy the ability to hand us over the demanding and often stressful task of managing property maintenance (and managing other owners).

Ultimately, this is what you want: to be able to entrust the management of your asset to a competent team that will act in the best interest of all owners. So for anyone looking to BUY ON an existing scheme ... what should you look for in strata management before making the leap?

LOOK:

It seems too simplistic, but the appearance of a complex can be a HUGE indicator. Look at the building and take a look at the garden - is it well maintained? Are the lawns green and cut? Do the plants look happy? Or are weeds sprouting up in the cracks in the concrete, with dead grass and lifeless plants everywhere? Good management will ensure the maintenance of common buildings and gardens and will have funds allocated to achieve this.

Research the state of the garbage disposal area ... This can be a great source of stress in both large and small complexes because one person's garbage can become a problem for the entire community. Does the current method conform to the Law of Strata Titles? Is there even a clear procedure?

Common areas must be in good condition, clean, and in good working order. Areas such as the lobby, elevators, parking lots, etc. If they are dirty or in bad shape, then it shows a level of complacency on the part of the management company and the HOA ... which is absolutely not something you want.

TO ASK:

There are a number of important questions that need to be answered before considering purchasing a program. One of the first things to know is who runs the complex. Is it run by a fellow owner (volunteer layer manager), or is a layer management company employed, and who are they? A quick Google search can help you learn more about the management company, and reviews are a great tool to better understand its reputation.

We also recommend asking an existing resident to get first-hand information on how things work and how well the management considers those who live there.

Some complexes have a high percentage of rental tenants. Here in Victoria Park, where the Empire Estate Agents is based, a large portion of the apartment complexes are home to a significant number of tenants who rent. This is not necessarily try this out a bad thing. But it's worth noting that with a revolving door of tenants, it's more difficult to establish the sense of community that many people choose by changing strata managers for. Some people also find the risk associated with having a constant stream of tenants an unpleasant idea. A good balance has a mix of investment leased properties and owner-occupiers.

Be sure to ask about the bylaws. The bylaws will have a massive impact on your strata of life (either for you or for any future tenants of yours). Some complexes have stricter bylaws than others, including what you can and cannot put on the balcony, how you can / cannot use certain spaces, etc. With the changes to the reformed Stratum Title Law, a consolidated set of bylaws must be filed with Landgate over the next four years, making it easier for you, the prospective buyer, to access them. Until you have a consolidated set of bylaws, you may need to refer to multiple registered bylaws.

If it is a "designated" strata Central Coast complex, is the building or property compliant? Is there a 10-year maintenance plan and ample reserve funds to cover this? It sounds pretty obvious, as you wouldn't buy an out-of-the-box home without being sure, but it's easy to assume that others will have done the right thing before you ... and that's not always the case. You don't want the previous owner's mistake to become a costly problem for you.

And finally, with the new reforms to the Western Australian Strata Titles Act of 1985, there are new disclosure obligations for strata sellers. It is important to know what data you are entitled to as a potential buyer of a stratum.

A seller will now need to provide estimated strata tax contributions over a 12-month period, the most recent statement of accounts, minutes of the annual general meeting, insurance and 10-year maintenance plans (if applicable), and any amount already owed to the strata. company by the current owner of the lot. This new transparency lets you know exactly what you are buying, so there will be no unpleasant surprises in the future.

IN THE KNOWING ...

Layer management can make or break a layer complex, so knowing what you are getting into when purchasing a layer batch is critical. Don't be ashamed to ask questions and don't be afraid to be nosy. Thoroughly investigate all aspects of the building: the common areas, the parking lot, the gardens, the elevators, the swimming pool, and examine the paperwork and management procedures yourself.

If things are not looking good at the complex, were the works discussed at the last meeting or were funds provided for future works? As an example, a new elevator can cost between $ 110,000 and $ 180,000 if there are one or more elevators at the end of its useful life, does the reserve fund have a contingency for this?