What you should know before buying a Strata property

first_imgMore from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020Damien Keyes is a prominent Townsville real estate agent and REIQ zone chair for North Queensland.If you are considering purchasing an apartment or unit run by a body corporate then you should carefully review the records of the body corporate. This will give you important insight into financial matters, past minutes of body corporate meetings and correspondence relating to the body corporate. This enables you to properly understand what you are buying into and current issues impacting the body corporate. You should also consider the financial responsibilities which are associated with buying a unit or apartment. Make sure you review the balance of the sinking and administrative funds and the ongoing contributions you will be required to make if you become the owner of the property.An administrative fund is for the everyday expenses of the body corporate such as garden and grounds maintenance. Meanwhile, the sinking fund contains moneys for the capital expenses of the body corporate. For example, internal and external painting of the building. It is important these funds contain adequate moneys to cover the necessary expenses when they fall due. Where the funds are not sufficient, the body corporate (made up of the owners) will be generally required to make the contributions for any shortfall.When you buy a lot in a community titles scheme you are automatically a member of the body corporate. This gives you voting rights when issues come up that require a vote. If you’re thinking about buying a Strata property, there are a few things to consider.INCREASINGLY, Queenslanders are embracing apartment living and with 17 per cent of us now living in an apartment — the second highest apartment-dwelling state, behind NSW at 22 per cent — more of us are learning about body corporate rules and what it means for us if we buy an apartment.Indeed, there are more than 43,000 community titles schemes with more than 400,000 individual lots managed by a body corporate.But what is a body corporate and what does it do?In very basic terms it’s the organisation that is in charge of running the apartment building and handling all of the common area issues. There must be a minimum of two lots on the titles scheme, so that could apply to a duplex, a residential unit block, a townhouse complex, a high-rise accommodation building, a shopping complex or a business park.last_img

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