Sun Spirit

When you buy a strata property (such as a unit or apartment in a complex), you then own a strata title. This title allows you to own a small part of a larger property (your own unit), as well as to own a share of the common property (driveway, gardens etc.). Investing in a strata property can be a wise move, but there are some critical factors you’ll need to think about before you sign on the dotted line.

Here are five of the most important things you’ll need to know before you buy a strata title.

Your strata scheme will be run by a committee

Strata schemes obviously need to be managed and coordinated by someone, and for most schemes, this job falls to the committee. The committee is a voluntary group of owners who take on leadership and management roles on behalf of all the other owners. The committee is tasked with making decisions on matters which affect all owners, so that owners don’t need to be involved in decision making if they prefer not to. Of course, each owner has the opportunity to be part of the committee if they choose. The level of involvement with the committee is up to each owner to decide. Keep in mind that the committee will have the final say on all matters relating to the building, however.

As well, it’s common for many strata schemes to employ the services of a professional strata management company, such as Capitol BCA: https://www.capitolbca.com.au to oversee and help with the functions of the body corporate.

You’ll need to gain approval before making changes to your property

Yes, you may own your unit, but you’ll need to get approval before making any major (or sometimes minor) alterations to your property. This is because many changes that you make have the potential to affect other people or the unified look of the property. Want to install an air-conditioner? You’ll have to ask. Want to lay a soundproof floor in your apartment? Again, you’ll have to ask. This is not to say that your requests won’t be approved – that will be up to the committee. You may well be given the green light to make your desired renovations, but you’ll always have to receive approval first.

You’ll still have to pay for building maintenance and upkeep

While you won’t have to organise the upkeep and maintenance of your building yourself, you will still have to pay for it through your levies. It’s only fair that all owners should contribute to the upkeep and running of the building. If something goes wrong, you need to fix it, and naturally, the unit owners should be responsible for the management, repair or replacement of the common property.

Levies are an integral part of any strata scheme, and are divided between two different funds:

• The Administrative Fund, used to cover everyday expenses such as weekly grounds and garden maintenance
• The Sinking Fund, used to cover irregular but larger expenses, such as painting the building every ten years or so

Levies can be off-putting for many people, who don’t like the constant drain on their finances. But when you think about it, levies allow you to offload the task of property maintenance and upkeep onto someone else, freeing you to concentrate on other things. Body corporate levies enable unencumbered, hassle-free living in your unit and usually cheaper costs for products and services, as these costs are shared among many people.

You’ll need to follow the by-laws

Living in a strata property means you’re not free to do just as you please – you’ll have to follow the by-laws set down by your committee. These laws are established when the scheme is first set up, and ensure the smooth functioning and management of the building for the benefit of all. By-laws are rules and regulations that maintain order throughout the scheme and ensure all members of the scheme act respectfully towards others, the building and the body corporate in general. And while legally they cannot be oppressive or unreasonable, they certainly can be strict and will be enforced by the committee.

Owners and residents are obliged to follow the by-laws, even if you don’t agree with them. It’s wise to familiarise yourself with the by-laws of any potential scheme you’re considering buying into before you commit to the scheme. That way you can ensure that you’ll be able to follow them appropriately.

You’ll need to gain approval before getting a pet

Strata legislation is becoming more pet-friendly in recent times, but you’ll still need to make sure you get pet approval before bringing a pet into the scheme. Obviously if you have an existing pet, you’ll need to find a scheme that will welcome said pet into the building. This is very important to know before you buy into the scheme.

You’ll also need to know what the by-laws say in relation to your responsibilities concerning the pet, so make sure you have all these bases covered before committing to the scheme.