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: [email protected]
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.