10 Questions to answer before you buy a lot in a body corporate or strata

scheme

Investing in a body corporate or strata scheme is different from investing in

a house

There are more rules, the buildings are more complex

and there are more responsibilities

Luckily there are plenty of benefits including cost, lifestyle,

facilities and location

Choosing the right community for you

is a big decision. Ask lots of questions

Start with

these ones…

Is it noisy?Listen for walking

upstairs, traffic or

noise from restaurants.

These issues are

unlikely to change

Can I have a pet?A schemes by-laws will

control pets and many other

aspects of life. Its important

to read the by-laws

If there are no water

meters costs for the

whole scheme are charged

to lots proportionately

not by actual usage

Is there a water meter?

Large groups, like

strata schemes, can

buy electricity at

discounted prices, a

nice bonus

Is there bulk electricity?

You are not just buying a unit but a

share of the body corporate or

owners corporation as well

BE AWARE

As a potential purchaser

you have the right to

perform due diligence

investigations by looking

at the schemes records

Ask these questions…

How much are the current levies?

Levies are your portion of running

costs for the scheme. They differ

between schemes and usually increase

year to year

Is there enough money?

If a scheme doesn’t have enough money for it’s needs the lot owners will need to

contribute more

Lot owners are responsible

for managing their own strata

scheme. Is it working well?

Is management effective?

Are there any ongoing arguments?

Groups of people living and investing

together generate disputes. Some might

be better to avoid

Is the scheme following the rules?

There is a lot of legislation that strata

schemes must comply with. Are their

any outstanding issues?

There are no guarantees with property investing…

but

…with research you can start from a strong position

Answer these questions with a strata search

Lisa RutlandE: lisa@mybodycorpreport.com.au

I answer these questions in my pre-purchase body corporate report, so, if you’re buying in the Southeast Queensland area, email me or visit the site; I can help.