As urban areas become more densely populated, Australia will see an even greater reliance on units and apartments for housing. You may be a first home buyer, downsizer or even an investor.

Purchasing strata/community titled property has some unique points to consider before signing the contract.

Neighbours

Most strata complexes have neighbours sharing walls/ceilings/floors in some form.

Consider:

· Sharing bedroom walls

· Common areas around the property (driveways, gardens)

· Garaging

· Potential noise issues from open spaces, like balconies

· Those INTERESTING neighbours (you know the ones…)

Close living is a huge change from having your own block of land. Consider renting an apartment first, just to see if it’s for you.

Costs

You’ll be paying for utilities, phones, water rates and council rates, as usual. Sometimes these are pooled within the group and split evenly or sometimes individually charged. In addition, you also have to contribute to your strata fund.

Body corporate fees are likely to be determined lot size and are used to cover common property items such as:

· Lifts

· Swimming pools

· Restoration of ageing buildings

· Insurance

· Gardens

· Administration costs

· Painting

· Cleaning of common area

Special levies can also be charged, to cover unexpected or extraordinary expenses (i.e. swimming pool cracking beyond basic maintenance).

Strata Laws

Due to the nature of the living arrangements, special rules are drafted - some simple, some complex and some unwritten.

Strata by-laws help regulate what can and can’t be done by owners and tenants.

They help determine matters like:

· whether you can install air-conditioning

· whether you can drill into common walls

· if you can have a clothesline

· if you can have additional shelter added to your unit

· pet ownership

Meetings

Annually (minimum) you can attend a meeting about the running of the scheme. You don’t have to be there, but at least you should nominate a proxy in your place. This is when important decisions are generally made.

These meetings the best format to raise concerns, ideas, feedback to all concerned.

Not every property is the same

Strata and community schemes can vary in their rules, that’s why we at Stevens Conveyancing recommend you get the strata records inspected prior to purchase. This will help you make an informed decision BEFORE you commit.

Other resources

http://www.fairtrading.nsw.gov.au/pdfs/About_us/Publications/ft045.pdf

http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Buying_into_a_strata_scheme.page

If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.

Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.