A strata report is essential for anyone purchasing a property that’s part of a larger complex. When you buy a unit, you’re becoming jointly responsible for the entire complex. A strata report should give you an accurate picture of the costs involved in owning a unit and can be significant in determining whether you should buy a particular apartment.
1. Levies
Investing in a unit is a big decision and a strata report can provide details of the current levies associated with ownership. With a strata report, you’ll be able to see past/current levy rates and get some idea of how much these may cost you each year. The strata report will also tell you if any special levies have been raised in order to cover extraordinary issues like major renovations or repairs. Frequent or significant special levies can become a financial issue for an apartment owner on a tight budget as these contributions are generally compulsory.
2. Strata Funds & Property Maintenance
A strata report will also let you examine what the levy money is being used for and if there is enough money to rectify any issues that appear to need attention. If funds are not sufficient, you may have to fork out thousands of dollars down the track on top of your mortgage for special levies that are raised to attend to maintenance or refurbishment matters – and a strata report may help forewarn you about this type of situation.
3. A Trustworthy Committee
A strata report is also vital in making sure the strata committee is reliable and competent – they need to keep updated and thorough records and the strata report may show if this is the case. The quality of a strata committee’s decisions – and of any work they arrange – affects the hip pocket of apartment owners. It can be important to discover if there are any issues in this regard – for example, are owners unhappy because they paid a $4000 special levy for kitchen refurbishment which resulted in nothing more than a fresh coat of paint being applied to the unit kitchens?
4. Insurance
Insurance is an important focus of your strata report, as all strata schemes must be insured. The strata report will outline the insurance details and should highlight the range of policies held.
5. Lifestyle
A strata report can also give you an insight into any lifestyle regulations imposed by the committee, such as restrictions on pets, parking allocations and approvals on renovations/refurbishments. If the strata report also uncovers any major disputes between occupants, or between occupants and the strata committee, you should assess whether these could disrupt your lifestyle and peace of mind.
Find out what to expect before you buy into a strata titled property by arranging a strata report!