When you take out an investment home loan to purchase a strata lot, whether it is a commercial space or an apartment unit, there are many things you should be aware of regarding your responsibilities and rights. Here are a few that might pique your interest.
You can get involved
You can attend strata committee meetings and voice complaints or suggestions. If you have a by-law suggestion, it could be passed with the support of a majority of the committee, but the specifics of this will differ state to state. You can also use meetings between management and lot owners to raise issues with common areas and get them fixed, or even apply to join the building committee yourself.
Reviewing the files of previous owners and those who run the building you are buying into is also helpful, as you can learn about any past issues.
You should know the specifics
By paying attention to the by-laws in your strata scheme, you can get a good feel for what works and what doesn’t work in your living arrangement. In New South Wales, owners of strata lots are responsible for water leaking from the bath and taps, while the corporations in charge of the building could be responsible for any water leaking from the shower.
Across Australia there are many different rules for strata title, so it’s important to get a look at a detailed living plan and know exactly where you can and can’t claim insurance.
When the levy breaks, be ready
From time to time, the levies in your strata block may rise to cover continuing maintenance and expenses incurred over the year. While this can be frustrating, it is likely to protect the value of your property in the long term. If you can, put aside some savings so you don’t get stung by this.
As the apartment market continues to expand, strata units will become more and more popular for inner city living. Getting a loan to invest in strata could be an extremely profitable in the long term, especially if you keep a keen eye on these details.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.