09 SEP 2015
As exciting as buying a property is, it’s important to keep your wits about you and make sure you have the fundamentals covered. If you're buying a property that is part of a Strata Scheme one thing that should definitely be on your checklist is getting an Independent Strata Report. Purchasing a lot in a Strata Scheme is a big commitment that comes with significant financial risks. An Independent Strata report makes sure you understand this element of the property, not just the actual unit, apartment or townhouse you are buying. The report is an essential part of making an informed decision, and it can save you money by providing a realistic view of the general condition and financial situation of the Strata Scheme you are considering buying into.
What is an Independent Strata Report?
An Independent Strata Report provides an unbiased overview of the management, financial position, and other matters relevant to a Strata Scheme. The report will detail the inspection of the books and records of a Strata Scheme, saving you the effort of working through complicated documents.
The report will provide details regarding:
- The Owners Corporation
- Insurance and Valuations
- Financial position of the Owners Corporation
- Levies (Administration Fund Levy, Sinking Fund Levy and any Special Levies)
- Recent meeting notices and minutes
- Evidence of any major expenditure being considered by the Owners Corporation
- Major issues affecting the building and/or common areas
- Rules such as if pets are allowed
- Other potential matters of concern to a prospective purchaser
Why should I get one?
An Independent Strata Report is vital for peace of mind and making an informed decision regarding the property you are thinking of buying. Our Independent Strata Reports can help you be informed before you enter into a binding contract. When you purchase a lot in a Strata Scheme you automatically become a member of the Owner’s Corporation. This is a significant financial and legal commitment, as you are essentially buying a share in the business of the building and becoming liable for problems that need fixing. The Owners Corporation is responsible for the upkeep and maintenance of the buildings common areas and pays for its obligations by charging each owner levies.
As a prospective purchaser it is important to understand the financial health of the Owners Corporation and whether there are any major issues affecting the building. If the building requires significant repairs you may have to pay a special levy. Sometimes these can be large enough that owners need to sell the property. An Independent Strata Report can provide this information in an unbiased way. As well as helping you make an informed decision, an Independent Strata Report can save you money. Being informed helps you choose whether to proceed at the asking price, or it can help you negotiate a lower price to compensate for defects.
How can BYB help?
BYB can help you book an Independent Strata Report, and saves you money by creating a share economy for the cost.
Do I need anything else?
An Independent Strata Report is the bare minimum you should do before purchasing a Strata Property. You should also personally inspect the property and get an independent building and pest inspection report for your lot in case there are things the body corporate have missed. Don’t get caught out when purchasing a strata property – you need to take into account the financial state of the body corporate as well as any other obligations you may be incurring.
Before You Bid helps potential buyers save time and money on independent property reports. Find out more at www.beforeyoubid.com.au