New to apartments or teetering on the brink of buying your first unit? Trusting that someone somewhere will make the right decisions for everyone? If only.
You need to have your wits about you when you enter the brave new world of apartment living. Here’s a guide to the five basic mistakes apartment-owning newbies often make.
Skimping on the strata search
Of course you’ll do a pre-purchase search – your solicitor or conveyancer will arrange it – but will it be just a spreadsheet of your new unit block’s assets and liabilities, with a nod in the general direction of pest control and fire safety inspections?
Are there expensive works that can’t be delayed any longer in the pipeline. Is the pet-friendly building you took ages to find, about to ban animals? Or vice versa? You want the strata committee minutes for the last three years to be studied with an eye on all the internal conflicts and any proposals to changing things in a way that might affect you.
Delaying defect claims
While you are floating away on the “new car smell” of your just-completed apartment, the clock is ticking on building defects. You have six years to claim major defects – faults that might render the building or your flat uninhabitable – and two years to claim anything else. Insist your committee gets a building survey done ASAP and, if necessary, lodge a claim. Tick tock, tick tock…
Not reading your by-laws
Your by-laws (or rules) are attached to your contract of sale and tell you what you can and can’t do in your building – whether it’s having a pet or smoking on your balcony. Just because you haven’t read them doesn’t mean they don’t apply.
Not getting involved
How much harm can the people who did get elected do? You’ll find out when your committee is stacked with fixed-income retirees who do have the time and won’t spend a cent on the building unless the bill is attached to a court order.
Believing that as owners, you can do as you please with your flat
All you really own is the airspace between your walls, the floor and your ceiling. Start messing with anything else without permission and you could be in big trouble.
Apartment living and investing is a very different lifestyle for most Australians. But go in with your eyes open and it can be very rewarding.
This is an edited version of Jimmy Thomson’s Flat Chat column which appears in full every week in the Australian Financial Review ‘Smart Investor” section and online at flat-chat.com.au