Things to be careful of when buying a unit, flat or apartment.

There are so many pros to buying something smaller and more compact. Let’s talk less cleaning for starters as well as hopefully lower maintenance over time. There might also be the social aspect of being closer to others or closer into town. Then there are some complexes which have shared facilities (like gyms, or pools, or tennis courts). 

But – there are number of things you want to consider prior to going down this road so that you’re fully briefed before you make your offer. 

Strata title 

Here’s a great article and website with resources into this type of property ownership:

https://www.lookupstrata.com.au/what-is-strata/

Company Title 

Company title isn’t common but here’s a great link to a website which gives you more information into this. Note, not all lenders will fund a property in company title: 

https://www.consumer.vic.gov.au/housing/owners-corporations/buying-into-an-owners-corporation/company-title-and-stratum-title

Things to consider:

  • What will your neighbours be like? Are they tenants, or owners? Would you feel comfortable door knocking the other neighbours to get a sense of who you’ll be living in close proximity to? 
  • Is there a formal body corporate, what are the ongoing fees (these can vary widely), is there a sinking fund (ie: funds that have been put aside in the past for future maintenance), is there any ongoing or foreseeable maintenance due at the property? 
  • And if there is no formal body corporate or strata corporation what insurance risks might there be at the property for you in terms of if there were an accident on common property. Chat to your solicitor / conveyancer about this. 
  • The body corporate may have restrictions as to what meets you can have, and also if you can air bnb the property.