Strata schemes and owners corporations

Strata schemes and owners corporations

Buying a flat can be a great way for a first home buyer to enter the property market. Often an apartment can offer exactly the same floor area as a small home for a lower price. Living in a flat can involve a few compromises on lifestyle. These might include a reduction of private outdoor space, having to share a laundry and potential noise problems. Another important compromise is autonomy over your property. Buying an apartment generally also means you are joining a cooperative and many decisions regarding your flat and the property as a whole will not be yours alone to make.

Joining a strata group means having to attend regular strata meetings where annoying things like repairs, maintenance and the building’s rulebook are negotiated. All apartment buildings have these rules to which owners and tenants must adhere. Rules range from how repairs should be carried out to whether or not pets are allowed. As a general rule any major repairs or maintenance, especially if they affect the common areas or exterior appearance of the building, must be negotiated with the other owners. It is particularly important to discuss any planned alterations that involve structural changes or that might impact on the other occupants.

It’s also important to keep in mind that you’re buying interest in the building as a whole and, if something goes wrong with the roof, for example, or the cellar, or the common sewer, then you will most likely need to contribute to the costs of repairs. The potential for unforeseen expense varies according to the age and size of a building and can range from lift repairs to garden maintenance. For this reason your inspection of a new apartment should extend to all the common areas so that you have a good idea of the condition of the building as a whole and can take that into account at the auction, or when making an offer. You should also acquaint yourself with the strata or corporation rules and make sure that you can adhere to them.

The biggest gamble in this whole situation is neighbourly relations. Your new neighbours are going to impact on your life in potentially far-reaching ways. What if they vote against your fantastic plans to build a balcony or add windows? What if they don’t allow you to entertain your friends in the shared courtyard at night? Obviously it is important to try to stay on good terms with these new people in your life, so that malice and resentment don’t play a role in the decision-making process. Ultimately this is the biggest unknown in the whole equation and one you can do little to safeguard yourself against.

Despite all of this, as long as you consider the long-term implications, purchasing a flat can be a safe and affordable way to fulfil your dream of home-ownership or property investment.

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