Understanding the nuances of buying a strata titled property

Apartment living in Perth is becoming increasingly popular, and as a result we’re seeing the composition of Perth’s property landscape slowly transition to include more multi-dwelling living options in the CBD and surrounding areas.

One of the biggest differences associated with living in apartments, townhouses and villas is that they are most commonly part of a ‘strata titled’ complex. Compared to buying a standalone house on the more traditional ‘green titled’ lots, properties that are part of a strata title require additional considerations from interested buyers.

Building management

The first consideration is to find out how well the building is managed. When you buy into a strata complex, you own your dwelling, but anything that’s deemed ‘common property’ is owned by the strata company who have an obligation to repair and maintain it.

To fund this maintenance, each owner is required to pay a levy which is used for budgeted expenditure over the coming year. There may also be a levy for a ‘sinking fund’ set aside for any long term expenditure. If this is the case, enquire about the current balance.

What levies are included?

Prior to buying, find out what levies you are required to pay as these costs should form part of your budgeting considerations. Features such as a swimming pool or lifts can increase levy amounts as they generally need more maintenance, particularly as the building ages.

Speak to the real estate agent selling the property. They can explain the details of the strata and obtain a copy of the latest strata company budget, as well as a statement of what’s already been spent. They should also be able to provide the minutes of the last annual general meeting for the strata building, which can provide an insight into any issues affecting the complex.

Make enquiries

It’s worth asking for a copy of the building’s Strata Plan too. This document provides an explanation of where the boundaries lie, so you have a clear understanding of what’s yours and what’s common property. In many cases, you’re purchasing only the internal spaces of your apartment, with everything external to this considered ‘common property’.

You should also determine if the strata lot has any areas of exclusive use, such as a balcony or courtyard. Exclusive use areas remain as common property, but you have exclusive use of that space and responsibility to maintain it.

Finally, there are a set of by-laws, standard to every strata company, which are sometimes supplemented by additional by-laws. These by-laws might be adopted by the strata company following approval by the property owners, and can include things like restrictions on pets being kept by owners.

Multi-dwelling living has plenty of benefits, but it’s important you’re well informed about the strata title associated with the complex prior to purchasing. Doing your research will help ensure you avoid any surprises once the sale has gone through.

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