If you are among the 48,000+ Sydney buyers purchasing a unit this year it pays to be well informed about your investment before you sign on the dotted line.
After more than 42 years in strata management, we cannot recommend more highly the importance of thorough research. Fortunately there are several key activities that will assist you in making the right decision and avoid potential disasters.
HERE ARE SOME OF THE AREAS WHERE WE CAN ASSIST YOU TODAY:
We can also assist you with the most important questions you will ever ask BEFORE you buy. Questions like…
Why do I need a strata inspection report?
You are looking for evidence that the strata plan you're buying into is protected from undue risk, well-maintained, proactively managed, adequately financed, and planned well into the future.
A strata inspection report is one of the fastest and most comprehensive ways to find out what you may be investing in.
Your report should include important detail around:
- The cost of current levies;
- The financial status of the scheme;
- Pending or past building works;
- The likelihood of special levies;
- A 10-year budget plan; and
- All expenses for the past two years.
You'll also find information on bylaws, disputes, strata insurance, the finances of the collective asset (i.e your unit complex), disputes and other property or people-related issues.
Top 10 questions to ask before you buy your unit
- Is the collective asset (i.e your entire unit complex) adequately insured?
- Is the complex financially well-managed (compare the age of the building with the size of the sinking fund, is it a race to bottom or is there an asset enhancement plan)?
- Are there outstanding invoices or building works that could result in a special levy?
- Does the building have defects? How are they being addressed?
- Are council and safety regulations met?
- Has there been legal action or public liability claims (e.g. between strata management, owners corporations, developers of sub-contractors)?
- Is there a history of disputes (between owners and strata management)?
- Is there clarity around the future of the building, are there plans in place for enhancing its value?
- Is the collective asset and the land it's built on structurally sound?
- Is there a proactive and informed Owners' Corporation focused on good governance of the collective asset?
Questions To Ask Yourself Before You Buy A Unit
- Are the bylaws reasonable or overly restrictive?
- Can I afford the quarterly levies?
- Will my budget allow for planned special levies or unplanned mishaps?
- Am I comfortable with the percentage of owner-occupiers to short-term residents?
- If the owners corporation doesn't allow pets, will I still want to live in this complex?
- Will renovations I'm planning for my new unit be approved?
- Do I know who is responsible for each area of the complex - i.e what exactly is part of common property?
- Is the strata management run by an established company with extensive experience in enhancing, managing and protecting the complex as a collective asset? i.e are they focused on helping to protect and increase the equity of all the property owners in the complex?
Answering these basic questions is essential for informed unit buying
Independent Unit Management is passionate about educating all unit buyers on the essential elements of creating a valuable collective asset that nurtures a safe and happy living environment.
We believe information is power and it's time Sydney's unit owners used that power to create a city full of well-managed communities.