Factors to Consider Before Purchasing a Property With a Strata Title
If you’re considering purchasing a property that’s part of a strata title, here are some factors to consider.
Strata ownership is a unique form of property ownership that allows individuals to own a portion of a larger property complex, while sharing responsibility for its maintenance and management with other lot owners. If you’re considering purchasing a property that’s part of a strata title, here are some factors to consider.
Strata Inspection Reports
Before purchasing a strata property, make sure you obtain a strata inspection report. This report provides valuable information about factors that could impact future strata levies or property value. This includes:
- The property's financial health
- Maintenance history
- Insurance coverage
- Any potential issues
Strata Fees & Levies
To fund the maintenance and management of the common property, the owners corporation collects fees or levies from each lot owner. These fees are typically paid quarterly, and can vary widely based on factors such as:
- Property's age
- Amenities
- Ongoing maintenance requirements.
These are ongoing costs that will need to be factored into your budget. Learn more about ongoing costs associated with owning a home here.
By-Laws
Strata properties have a set of by-laws that outline the rules and regulations governing the property. These by-laws can cover topics and issues that come with living within a larger property complex such as:
- Renovations
- Noise
- Pet ownership
What if I’m an investor?
Strata properties are often considered by property investors. While The property owner is responsible for strata fees. It's advisable for property investors to Recommend seeking tax advice on the deductibility of strata fees, as they may be partially tax-deductible depending on local tax laws.
Buying a home and want to learn more? Discover more here.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
Related
The Upfront and Hidden Costs Of Buying A Home
More questions?
We have more answers.
Got a question?
Ask us anything.
There's plenty more to love
- Annual rate discountIn year010.01%
p.a. Application Fees
Banking Fees
Account Fees
Change Fees
Exit Fees
Say no to fees.
- Award winning value
Built by Australia's leading bank.
- Apply in minutes.
6 steps.
And done.00:00:00
A home loan you can love
Low rates, with a discount that gets better and better.
No fees from us
No application fees, no account-keeping fees, no annual fees.
Apply in minutes
Switch to Unloan today.
Built by CommBank
Unloan is a digital home loan, built by Australia's leading bank.