With increasing demand for available property in our capital cities, strata title properties are becoming a far more profitable and desirable option for investors in Queensland. Whether you are looking to purchase or are already searching for your own strata title property, there are some essential components of strata investment that you should research before settling a purchase agreement.
Here are some tips for purchasing strata title property:
Each strata titled asset is represented by an owner’s corporation, which has the responsibility of ongoing maintenance effects of the building. To be able to carry out repairs and maintenance on a strata building, an owner’s corporation charges each strata owner a duty. This duty can also include common area services like electricity and water, and sometimes insurance. However, you need to understand these duties or levies and make sure they fall into your budget.
Here are some questions to ask:
- Will, your building’s charges, be a simple administration levy, or will they include reserves for future capital works on the property?
- How often do you need to pay the levy – are the levies annual, monthly, or quarterly?
- Are there any forecast levy increases coming?
Strata titled building are also governed by various policies and procedures for its operation. This is set out in a series of strata bylaws that will clarify how disputes are resolved, health and safety of occupants and appearance maintenance of the building.
There may be some bylaws that could clash with how you intend to use the building, so make sure you are aware of any issues. There may also be bylaws that you don’t agree with, and breaching can result in fines and penalties, so be mindful of all bylaws.
One of the most important things to consider is who currently occupies the building. Properties with a higher owner occupancy will generally result in much faster maintenance and repair timeframes than higher tenant occupied properties.
There are many things to consider when it comes to purchasing strata title property, so don’t hesitate to contact us for more information.