I'm looking at the value of purchasing a 1br loft close to a major university however it is in a heritage building and a friend advised me to watch out for the strata costs.
I was wondering if anyone could list specific pitfalls to watch out for when purchasing in a heritage building.
One pitfall could be the lvr any potential lender might lend you.
Richard Taylor | Australia's leading private lender
Strata costs are widely variable however some generalisations to be aware of:
Older buildings, if properly maintained, will have higher maintenance costs, or repairs when they crop up will cost more.
Lifts/Pools/central air conditioning/24 hour concierge/security etc all increase the levies.
High levels of absentee owners (ie lots of rentals) often is related to inadequate/basic/lower levels of maintenance only being undertaken.
An active body corporate tends to keep costs under scrutiny (happens in high owner-occupied premises).
Check the amount in the sinking and admin funds, how they are spent and how they are to be spent. Is there a high level of reactive maintenance (breakdown callouts) or proactive (planned maintenance eg lobby carpet repair/replacement, gutter cleaning, gardening/lawn mowing, painting, concrete repairs etc)? It is better to have planned maintenance (showing that the strata manager& BC are forward thinking as opposed to only having to react to breakdowns).Thanks guys, I might steer clear of it!
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