Finding a strata property you like on the outside is just the first step to ensuring it’s the right one to invest in. Whether you are looking for somewhere to live yourself, or to grow your property portfolio for the future, it pays to be on top of the legal considerations involved in strata management.
Strata management resides under complex regulations which tend to vary across the country. Various strata laws have developed over the past 60 years to address the numerous local challenges and changing landscapes as they emerged. Even the language used when describing strata differs between jurisdictions, for example the collective body that manages the apartment complex is known as the Owners Corporation in Victoria, NSW and ACT, but Body Corporate, Strata Corporation, Strata Company or simply Corporation in other states and territories.
No matter where you are in the nation, there are several important investigations you should undertake prior to purchase to ensure your investment is secure.
There are three sets of documents you should gather before making your decision to buy, each with a different purpose, but each holding valuable information and insight into what lies behind the apartment building’s walls. Overall, you are looking at the property’s current standing in terms of finances, insurance and safety, tenancy, as well as projected changes.
The first essential step is to have a Strata Inspection Report completed, which will answer many of your legal considerations in one document. This is best completed by an independent strata inspector; one who is highly trained and experienced in real estate