While most people have probably heard of a pest and building report when it comes to buying a home, not everyone knows that when buying an apartment, unit or townhouse getting a strata report is as equally important.
So, let’s take a look at three of the main reasons property buyers should order a strata inspection report if they are looking to buy in a strata complex.
It’s fair to say I’ve read many a strata report in my time. If prepared properly they do make for a useful read. A good way to think of them is like a pink slip for a motor vehicle. They are a means for property buyers to test the property equivalent of being roadworthy.
A strata inspection report will uncover if there are any looming building issues in a complex. But it will go even further than this. It will also highlight if there have been any past problems or chronic ongoing issues associated with a strata complex.
Don’t forget small issues can quickly become big problems if not dealt with promptly. A strata report will also shine a light on smaller expenditure and identify if required maintenance spending is regularly deferred.
There is a wealth of information available in a strata report about the financial health (or otherwise) of a strata complex. At the very minimum it will outline the most recent financial year income and expenditure for the complex but more importantly it should go back several years.
If you are looking to buy in a strata complex you want to know whether there is more money coming in than going out, but at the same time don’t look favourably upon stinginess. Yes, you read that right.
Strata complexes aren’t profit making companies. They are there to look after the communal interests of all owners within the complex and this includes not only spending the strata levies collected appropriately, but also making sure problems are dealt with as they arise and certainly before they become major issues.
Not everyone enjoys living in close quarters, but in a strata complex there’s no avoiding it. As a home buyer ask yourself ‘do you want to buy into a complex where nobody gets along?’
Whether it be infighting amongst neighbours or occupants wilfully disregarding by-laws, a strata report is where you will find all of this out. There should be a clear audit trail either from the AGM minutes or correspondence back and forth between the strata manager and the executive committee that details if there is any disharmony in a strata complex.
If you are planning on buying a strata property, in my opinion you should absolutely spend the extra money and invest in getting a strata report done. What’s a few hundred dollars in the whole scheme of things? It will undoubtedly give you peace of mind and potentially see you side step a problem property.
If you liked this article you might also like Is It Worth Getting a Pest and Building Report?.
Shelley Horton is the founder of Sydney based exclusive buyers agency Albion Avenue. With a 20 year career honing her skills in every aspect of the property industry Shelley knows what makes a property worth buying and how to get the best deal.
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