What is Australian Strata Management and Is It the Right Thing for You?
A lot of people dream of becoming homeowners; however, when it comes to the selection of the property, they often spend more time doing the research on the neighborhood than the property itself. After all, isn’t the neighborhood something that determines the price of the place. The vicinity to schools, parks, and playgrounds may look particularly appealing to young couples or families with children. The importance of the community is also of pivotal importance. Speaking of which, you might want to consider the recent Australian real estate phenomenon of strata management. This way, you’ll determine whether or not this is the right thing for you.
What is a strata scheme?
The best way to describe the strata scheme is to say that it is a system that allows people to buy a spot in a community. The difference between owning a piece of strata and owning a property lies in the fact that while you get your own house, apartment, or commercial property, you also get partial ownership of the common areas. In exchange, you agree to abide by the rules of the community and relinquish the right to alter or impact these common areas without the agreement of the rest of the community.
It all depends on the situation
The next thing you need to understand is the fact that there are so many different strata properties in Australia, that making general conclusions based on individual experience isn’t very accurate. Therefore, those who intend to invest in a strata property in NSW might want to look for a consultation with reliable strata managers from Sydney. This way, they can get some accurate, first-hand advice and tips from a credible source. Here, they can inquire about emergency repairs, maintenance, and many similar, related issues that they are currently concerned with.
Who is tending to the common property?
Keep in mind that the strata as a whole are usually a property of the corporation. What you own is your unit, and you have the right to use the common property as it were your own (for the most part). This means that pruning and landscaping of the property fall to the corporation and whoever they put in charge. On the other hand, if the tree in question (if it’s the pruning that we’re talking about) is on your lot, it is you as the owner who is responsible.
What about the repairs
The next major question that we have to ask is, what about the repairs on the property? First of all, if you want to perform them yourself, you need to ask for permission from the owner corporation. In general, this is the responsibility of the corporation, not any individual owner, and, in most cases, they’ll entrust this task to a professional. This is out of the fear that a DIY project may damage the property as a whole and, thus, diminish its value.
The wheelie bins
One of the curious examples, which perhaps depicts this situation the best, is the one concerning the wheelie bins. The reason why this seemingly mundane and minor aspect is so indicative of the very nature of strata is that they represent a shared responsibility. You see, the corporation owns the bins, while the residents/owners are responsible for putting the bins out, bringing them in and keeping them clean. It’s quite simple to understand how such a relationship indicates the delicate nature of ownership within the majority of other aspects of strata.
The last thing you need to understand is the fact that the contents of your apartment are still completing your property. This is why you need contents insurance. Sure, the insurance of the corporation will cover any fixtures like sinks, showers, pipes, and electrical grid damage. However, when it comes to your appliances and furniture, this is still your responsibility. Seeing as how you, as an owner, have the full right of customization of your lot, you get to benefit from contents insurance in one more way. You see, this kind of insurance also covers your paint and finishes.
With all this in mind, it should be a lot easier for you to determine whether Australian strata management may be something that you find to be of interest. As you can see, while the model itself limits you in a lot of ways, you still get a higher degree of ownership of the community than you normally would. Also, you get someone else to share the responsibility, which is often quite reassuring.