10 questions to ask before you buy in a strata scheme
DESCRIPTION
Buying in a body corporate or owners corporation is different from buying a house. Ask these 10 questions to ensure you avoid problemsTRANSCRIPT
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10 Questions to answer before you buy a lot in a body corporate or strata
scheme
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Investing in a body corporate or strata scheme is different from investing in
a house
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There are more rules, the buildings are more complex
and there are more responsibilities
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Luckily there are plenty of benefits including cost, lifestyle,
facilities and location
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Choosing the right community for you
is a big decision. Ask lots of questions
Start with
these ones…
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Is it noisy?Listen for walking
upstairs, traffic or
noise from restaurants.
These issues are
unlikely to change
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Can I have a pet?A schemes by-laws will
control pets and many other
aspects of life. Its important
to read the by-laws
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If there are no water
meters costs for the
whole scheme are charged
to lots proportionately
not by actual usage
Is there a water meter?
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Large groups, like
strata schemes, can
buy electricity at
discounted prices, a
nice bonus
Is there bulk electricity?
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You are not just buying a unit but a
share of the body corporate or
owners corporation as well
BE AWARE
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As a potential purchaser
you have the right to
perform due diligence
investigations by looking
at the schemes records
Ask these questions…
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How much are the current levies?
Levies are your portion of running
costs for the scheme. They differ
between schemes and usually increase
year to year
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Is there enough money?
If a scheme doesn’t have enough money for it’s needs the lot owners will need to
contribute more
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Lot owners are responsible
for managing their own strata
scheme. Is it working well?
Is management effective?
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Are there any ongoing arguments?
Groups of people living and investing
together generate disputes. Some might
be better to avoid
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Is the scheme following the rules?
There is a lot of legislation that strata
schemes must comply with. Are their
any outstanding issues?
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There are no guarantees with property investing…
but
…with research you can start from a strong position
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Answer these questions with a strata search
Lisa RutlandE: [email protected]
I answer these questions in my pre-purchase body corporate report, so, if you’re buying in the Southeast Queensland area, email me or visit the site; I can help.