Before you purchase a property investment, there are a few key elements of the strata scheme, which you have to learn:
Under that strata plan, the entire property is protected with an insurance coverage, in which case, we highly recommend that you need to insure your personal belongings with a separate insurance coverage.
By-laws and Restrictions
The by-laws are specific set of rules that each individual living under the strata scheme is required to follow. It is a standard law by which those living under the strata plan are differentiated from those owning a personal property. The by-laws are created as a resolution to issues concerning pet keeping, noise management, and parking privileges.
There are particular apartments or unit developments under the strata scheme that prohibit pet keeping. If you already own a pet, it would be ideal to look into this issue before proceeding to buy a unit.
Sometimes, parking privileges in a common property is likely restricted especially if there is no consent from the Owners Corporation. Thus, if you own two vehicles and you are only allowed to have a single parking space, you are given two options, that is, either you park your other car on the street or pay for additional charges as penalties.
If you love hosting parties, then living in an apartment may not be suitable for you – unless of course all the tenants within your building love to party too. Under the by-laws of the strata scheme, anyone who would like to host parties or gatherings has to take into consideration the right to privacy of all the other tenants, to have a peaceful and unruffled living environment. As one of the tenants, you’re accountable for the behaviour of your visitors as well.
If you have found an ideal apartment, examine the floorboards if it suits your taste. Otherwise, better ask if installing new floorboards is covered under the scheme. You ought to think twice if you’d like to forgo your property investment.
If you are planning to move in to another home and put up your current unit for lease, make sure that your tenants will abide by the current rules under the strata scheme.
Prior to purchasing a property investment, it is ideal to conduct your own research and check all the records by which your property may be subjected to. There could be provisions within the strata scheme that can greatly affect your ownership.
There are also companies who specialises in managing strata schemes. They usually charge a small amount for their services and provide you with an informative report detailing all the relevant issues and provisions you need to know about.
Here are the basic aspects of the strata scheme that you will need to investigate:
- Strata Roll – this is to guarantee that all the details of the current unit owners are correct and updated, including the levies.
- General Documents – to know if there are disagreements between the owners and what is the proposed legal action from the Owners Corporation to address the issues which could possibly affect any unit owners way of living.
- Updated Financial Statements – to check if the scheme is not involved in any debt and that there is a sufficient fund for future emergency repairs.
- Existing Insurance Policy – ensures that the property has an insurance coverage that would protect your rights and privileges as co-owners.
- Strata Plan – to determine what the boundaries of the common properties are, and to be aware of any restrictions and limitations of the use of any common property which can affect the way of living of any owner.
For additional information regarding strata living and strata schemes, better ask the assistance of the local authorities in your preferred territory or state. This will be the ideal step in determining if an apartment unit is desirable to live in or otherwise. Remember also to ask the advice of a legal professional or an expert mortgage broker in Rockingham before signing any contract and making deposits.