Buying a Property

How to Make Sure That You Make the Right Decisions When Buying Your First Apartment

6 November 2017 by Chad Diaz

If you're in the market to buy your first home, then you may be considering the purchase of a property in a shared building. This can be very convenient, has the advantage of being a low-maintenance solution and is also typically cheaper than buying a stand-alone house at the outset. While you get ready to look at some candidate properties, what should you remember so that you can make the right decisions and get the home of your dreams?

What's Different?

Crucially, remember that the building itself is going to be owned by a number of different entities, including other apartment owners and yourself. Consequently, this is a very different approach to that of individual homeownership.

Checking the Bylaws

Firstly, understand the bylaws that affect the property, and these can be imposed by the state, the local authority or the "body corporate" established to manage it. These will tell you what you can and cannot do and may affect your ultimate decision if you own a pet, for example.

Inspection Reports

You need to ensure that the building is in good condition and must request a strata inspection report so you can see if there are any ongoing issues or if there is anything that you should be worried about.

Paying the Fees

When you purchase in this situation, you will typically be expected to pay fees to the body corporate, which will go into a "pool." They will then be used for the upkeep of the building and surroundings and could under certain circumstances be a sizeable line item on your budget.

Checking the Records

In a strata scheme, detailed records have to be kept following regularly scheduled meetings with all of the individual owners. You should check these records carefully, as they will give you an indication of how cohesive everybody is and whether there are too many disputes. You might want to move on to a friendlier community, if so.

Ownership Stability

Think carefully about the type of community that you want to live in. How many of the owners in this apartment complex are long-term, versus those that let their units out? This can cause issues sometimes with noise and disruption.

Can You Do "Your Thing?"

Finally, make sure that you are happy with the rules relating to updates, refurbishment and repainting. You will certainly want to personalise your own space, but need to check first to see what rules the body corporate has and whether they will give you enough free reign.

Is This for You?

It is best if you have a word with a real estate agent to learn more about buying homes.

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