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  • #8696

    I am considering buying a unit but have become quite hesitant. I’m sure there can be lots of positives with downsizing my home and entering into strata, but i am sure there are negatives as well. I do not know many people who own and live in a strata unit and i would like to know the good, the bad, and the ugly from those who have experienced it before i make my decision.

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  • #17859
    Jimmy-T
    Keymaster

      If I can jump in first, welcome to our world.  Don’t be put off by all the negative stories – people rarely write to ask for advice on how to deal with how happy they are.

      There are certain precautionary steps you can take to make sure your strata life is happy and stress-free.  This would be my checklist.

      • Don’t buy off the plan unless you really trust the developer
      • Don’t buy into a building that’s more than four years old (and less that 10) where a proper defects check and claim hasn’t at least been looked at
      • Don’t buy into a small block that’s dominated by one family (usually the builder’s)
      • Don’t buy into a block that has an onsite manager who is also allowed to run the rental roll
      • Be very wary of any block where the minutes show absolutely no signs of any problems, disputes or issues. This is probably covering up worse stuff than you imagine.
      • Unless you actually enjoy the sights, sounds and smells of other cultures (as many people do), make sure there isn’t an overly dominant ethnic or cultural group in the block – and that applies to retired WASPs as much as it does to new Australians.
      • Don’t buy into a building where the developer, building manager and strata manager are all run by the same company.
      • Don’t buy into a building that has ‘resort’ facilities that you might never use -any levies will seem high when you are paying for things you don’t want.
      • Make sure you share the same view on pets – whether that’s for or against them 

      After that, make sure your solicitor orders a forensic check of the strata minutes for the past three years, using strata search specialists.

      If you can tick most if not all of those boxes, you will probably have a happy time in strata. An believe it or not, there are plenty of apartments around that will give you exactly what you are looking for.

      The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
      #17862
      Felix
      Flatchatter

        Jimmy.  Just what do you mean by a forensic check of the minutes?

        I believe I have a good idea but can you be more specific!

        I would think that this may be necessary for hundreds of Stratas particularly in this day and age when e-mails are sent back and forth and the Owners don’t know what’s going on and problems are not looked after and swept under the carpet

        #17863
        Felix
        Flatchatter

          Jimmy.  I also meant to ask who does this type of work and how much does it cost.

          Also if irregularities turn up, what can be done about it if it’s already done and if it hasn’t been done?

          #17864
          Jimmy-T
          Keymaster

            OK, by ‘forensic’ I meant getting a specialist strata search company to read all the minutes, letters and emails to see if there are problems brewing or others that have been kept under wraps. Experienced strata search firms will do this – those who mainly do house conveyancing wouldn’t even know what to look for. But your solicitor should know who to ask.
            A good example of what happens when this isn’t done was in these pages about a year ago when a woman bought an apartment in a per-friendly building and a very cursory search of EC minutes didn’t reveal that there were plans afoot to change the by-laws to ban pets (which happened between exchange and settlement). I have no idea how much this level of search would cost but I reckon unless it’s astronomical, it’s worth it.

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
            #17868
            Sir Humphrey
            Strataguru

              @Jess said:
              I am considering buying a unit but have become quite hesitant. I’m sure there can be lots of positives with downsizing my home and entering into strata, but i am sure there are negatives as well. I do not know many people who own and live in a strata unit and i would like to know the good, the bad, and the ugly from those who have experienced it before i make my decision.

              Where I live a lot of people, myself included, were renters in these townhouses before we looked out for a unit to buy. We therefore had a clearer idea what we were letting ourselves in for.

              #17870
              ccbaxter
              Flatchatter

                JimmyT is absolutely right and there are great additional points here.

                No matter how savvy you are or how well you think you know the building, NOBODY should buy an apartment without a proper check by a professional of the strata records which covers the good points, the bad points and just as importantly, what might be missing from the records that should be there. I have learnt lately that some of the biggest names in strata management have the worst kept records, unfortunately.

                Buying into a strata really is a case of ‘let the buyer beware’ in this day and age. Someone I know bought a unit without realizing it was actually still owned by the owner who had sold it to the current vendor because the mortgage had not been discharged. This can actually happen and happened because of crookerdness and solicitors inexperienced in conveyancing. A nightmare for all concerned.

                A real estate guru says he is astounded at the number of people who buy places for huge amounts without getting proper checks done. Even more important with apartments.

                #17883
                scotlandx
                Strataguru

                  In the case of issues of validity of title, that applies to any type of property, it is not limited to strata.  From your story it sounds like whomever did the conveyancing had no idea what they were doing, as a check of the title records would have shown any interests such as a mortgage.

                  I certainly agree that it is surprising how many people buy property (and not just strata) without doing even basic checks.  I don’t necessarily think that it is more important to do those checks if you are buying into strata, but certainly there are a number of additional elements to throw into the mix, including what the co-owners are like, whether it is primarily owner occupied or the apartments are largely rented out and the absentee owners don’t care what happens.

                  It is worth bearing in mind that even if you do the most thorough checks of strata records it is highly likely that there will be issues that are “off the books”, and you won’t find out about them until you are actually in the place, so PeterC makes a good point.

                  Looking back now, I sometimes wonder if I knew what I know now about our scheme whether I would have bought my place – the answer is probably yes, as the good things outweigh the bad things.  I agree with all the points Jimmy makes, and personally I would be reluctant to buy into a recent development unless I was absolutely sure re defects etc.

                  #17885
                  andyj
                  Flatchatter

                    Hi Jess,

                    Strata living has many benefits and can have a few drawbacks as well and things can change over time. I received the following advice from a strata lawyer which I think it is a good addition to the advice given by the other posters in this thread.

                    Strata schemes with swimming pools, gyms and elevators often have high strata levies as these services have increasing maintenance costs as the scheme ages

                    Try and buy a lot on the top floor, as lots above can generate noise that is transmitted through the floor.

                    Large strata schemes with hundreds lots mean that your “voting power and influence” as a lot owner will be diluted. You will have more say as a member of the OC in smaller strata schemes.

                    Get a copy of the by-laws and strata records and have your solicitor check them over with you before you buy, query any “special levies”.

                    A building and pest inspection by a licensed practitioner is always worth the money and peace of mind.

                    In a strata scheme you will be living in close quarters with other residents and you will experience occasional noise from neighbors from time to time, however this can be true for free standing houses as well.

                    If you can talk with other residents in the building. Often you can get tidbits of information that are not on the strata roll.

                    #17900
                    adriantazza
                    Flatchatter

                      Hi everyone,

                       

                      Long-time lurker, first time poster! 

                       

                      I really felt like I had to respond to your post, Jess. I recently downsized from a house to a unit. I decided it would be the best way to enjoy a fuss free living environment, without the hassle and worry associated with maintenance of a house and large yard. 

                       

                      For me, I had never lived in a unit complex, and wasn’t entirely sure what to expect but bit the bullet and went ahead. I had all the necessary checks completed as far as a strata report goes, to confirm that the management of the place was in check, which it seemed to be.

                       

                      However, what the strata report didn’t prepare me for, was the shock of moving from my own house, being king of the castle, to a very spatially-shared environment. Things like hearing my neighbours move about their unit, or performing day to day duties like cleaning and watching tv or listening to music. To things as mundane as awkward moments in the elevator with people who I assume are my neighbours – saying hello to people and not receiving a response. I’ve tried to get to know my neighbours, much like I did in my house, but I haven’t received positive responses! Some of the residents might be tenants and perhaps that’s affecting the way they interact with me, but I wouldn’t know for sure since conversation doesn’t ever occur.

                       

                      I was also unprepared for the level of apparent ambivalence that some of my fellow owners have exhibited when it comes time for the AGM – I’ve tried to do my best to learn how things operate as far as decision making and financial arrangements go so that I can know where I stand and put my 2 cents in when I feel its needed, but some of the others really show no consideration for the rules. I’ve learned that, not being able to pick your neighbours is one thing (in terms of general living experiences like noise or rudeness) but not being able to pick the people who you make decisions with is a completely different game! I don’t feel like I’m on the same page with anyone else, and I was not prepared for that in the slightest, especially considering that decisions which I may not agree with in terms of being a good decisions for the long-term maintenance and management of the building, affect my personal finances now and most certainly will in the future. 

                       

                      I hope the above has provided some insight into what it’s been like for me, I’m sure this isn’t the everyone’s experience, but perhaps the others can comment???

                       

                      Good luck with the purchase if you do go ahead!

                       

                      Tazza

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