A strata property is a building or a collection of units, where individuals each own a small portion – ‘the lot’ they are purchasing. The rest of the common property (e.g driveways and gardens), every owner shares ownership over. This shared ownership is managed through a corporate body - a strata company.
When buying into a strata property, it’s important to do your research so that you fully understand what you are getting into. It’s not just about the property itself, but a myriad of other factors that could influence your decision to buy – including; the strata scheme, fees and current condition of the property.
Our tip - Get a strata inspection report!
Paying for a strata inspection report will give you details like how much money is in the ‘sinking fund’ (a fund which is intended to be used for repairs and maintenance of a building), levy fees, copies of annual meeting minutes, past or future planned works regarding building defects and the value of the building for insurance purposes! Most importantly, it will reveal any existing issues… Big issues can mean big bucks down the line, so it pays to makes a completely informed decision prior to making an offer!
The report will also reveal if other owners in the complex may be behind in payments, which again, can affect you down the line.
Some things to keep in mind
'Unit entitlement’ determines your share of ownership, and how much you are required to pay to maintain it. It also affects your voting power in decisions.
The strata plan will show the unit entitlement for each lot.
You will share ownership of common property with other property owners. Common property includes spaces like:
It also includes parts of a building like:
- common walls
- external doors
*Its important to know if common property makes up part of your property. This will affect the kind of changes you can make to your property.