Not that long ago, the favourite type of property to purchase was the stand-alone home on a block of ground. These days, several factors have combined to make buying an apartment more popular. But property lawyers agree that most apartments in a complex have Strata Title, which is quite different from the titles of homes on blocks of ground. You need to know what these differences mean for you before going ahead with the purchase.
- You will own your apartment, but in the complex there are many areas such as stairways, laundry rooms or social meeting rooms that are deemed to be ‘common property’. The upkeep and maintenance for these areas must be paid for by everyone who owns an apartment in the complex. So you’ll be in for an annual levy to make this possible. If the building has been poorly maintained it is likely to be a high levy due to the amount of maintenance needed. There may also be a second levy for what is known as a ‘sinking fund’ which addresses long term expenditure. You need to inquire about the balance of this fund to get some idea of what you are likely to have to pay, and if it’s enough to do the repairs that are needed.
