One of the choices many young couples are faced with is where to live. You have to decide whether to rent or buy.
With home affordability in Australia at an all-time low, more and more people are turning to apartments as a more affordable option.
What is Strata Property?
Strata properties can be commercial, residential or a mix of both. An apartment where you live would be an example of a common strata property.
In Melbourne as in the rest of Australia, the owner of a strata-titled property has individual ownership of their lot. Shared spaces like elevators, pools, and gyms are managed by strata management in Melbourne, a sector that specialises in the daily operations and maintenance of the building.
Titles
A Torrens or Freehold property title is common for free-standing houses and land properties. You are the legal owner and have control over its use. You can sell it, renovate it, lease it, or pass it on to a family member.
A strata property, on the other hand, is the tile of an individual property, but not the land or communal spaces. You can control the interior of your unit but not the outside. You can’t put new carpet in the hallway, or add a pool deck. For that reason, the value of your unit is tied to the value of the building.
Company titles are used when a company owns property, like a block of apartments. A prospective buyer can buy shares in that company and then have the right to occupy one of the units. This is different from a strata title where you are the owner of the lot.
Life In a Strata Property
When you buy an apartment or strata property you will pay fees for the ongoing maintenance and management of common spaces. How much you pay will depend on the building and the facilities provided. An apartment with a pool, elevator, and gym is likely to have high body corporate costs. These fees are payable whether you use the facilities or not. The cost and rules are outlined in the contract when you purchase the property.
Benefits of Strata Properties
Strata title properties are almost always less expensive than free-standing houses or townhouses. This means a lower entry point for you to be able to afford a home of your own.
You aren’t responsible for the upkeep and maintenance of the amenities. You don’t have to cut the grass, trim the trees or clean the pool.
You may find a building with great amenities. You can enjoy luxuries like a pool, gym or BBQ without the expense of buying them for yourself.
Strata properties are professionally managed. Only licenced and bonded companies are allowed to manage these types of properties.
Many strata properties are safer to live in. Security like gated access and locked parking spaces can provide a greater sense of security.
When you’re getting ready to buy your first house check in strata properties and find out if they may be right for you.
