Buying into a strata development can be a tricky affair. This is especially so for first-time buyers who may not know how strata developments work. Read this extract to learn about strata properties and the various considerations you should make when buying strata property. 

What Are Strata Developments?

A strata development allows property owners to individually own a lot (typically their house) but share common property (staircases, roads, parks or swimming pools) with their neighbours. People who purchase property in a strata development automatically join the owners association. The owners association appoints the owners committee. The committee manages the shared property and implements the resolutions of the owners association. The owners committee is elected during the annual general meeting.   

Buying Into A Strata Development

Below are some useful tips to observe when buying strata property. 

1. Condition of The Property

Ask your conveyancer to organise a property inspection. Other than the condition of your house, you should be interested in the state of any shared property. For example, does the drainage system have any defects? Leaks could contaminate the landscape and cause a foul smell. Moreover, check whether the septic tank is full. Examine the condition of the landscape and other recreational areas on the property. 

2. Pricing

Your conveyancer or real estate agent should appraise the property to determine whether it is reasonably priced. The location of the property, the size of the house, the quality of interior fixtures and the condition of common property are significant considerations when appraising the property. Besides, the professional will also check the price of similar properties in the locality. 

3. Management

Conduct some background research to determine the experience of the owners committee. Members should have excellent leadership skills. Interview a few residents to know whether they have confidence in the owners committee. Ask your conveyancer to assess the finances of the owners association. Check the annual or monthly contributions of each member. As a rule, you should not purchase the property if the owners committee mismanages members' contributions. 

4. Strata Bylaws

Examine the strata bylaws. For example, how many parking slots does each member have? Are you permitted to hold parties at the property? Are members allowed to keep pets? How do members resolve conflict? These rules will help you make an informed decision. 

Strata developments are significantly cheaper compared to single-family units. However, you must be cautious when buying into a strata development. Examine the condition of the property, pricing, management and the strata bylaws.