When purchasing a unit or apartment, it’s essential to consider much more than whether the apartment is suitable for your living and / or investment needs. You need to be able to look at the complex, the costs associated with the body corporate and how well it’s managed.
Obtaining a strata report is vital. It will detail the body corporate levies, how they have been expended and whether there are any outstanding orders or extra-ordinary levies to be struck in the near future.
There are two components to a body corporate strata fees;
1: Administration fund: this is where the day-to-day costs of administering the complex are attributed. It includes things such as insurance, electricity, staffing, pool cleaning etc.
2: Sinking fund: this is where monies are set aside for the ongoing maintenance of the common property including repairs, painting etc.
Buying into a poorly managed strata scheme can cause sleepless nights. We offer the following tips for making sure you don’t end up in a living nightmare:
- Undertake a strata report.
- Check how much is in the sinking fund.
- Ascertain whether you personally think this is adequate.
- Check if the complex maintained in an orderly manner.