I am interested in your thoughts on buying a unit that is in a small complex strata titled or community titled with no strata body/ body corporate.
I personally have stayed away from them, since investments i am looking to buy are interstate and i have perception that it could give rise to more issues with common property expenditure, dispute resolution, distance difficulties etc.
But i would like to hear what others think. Advantages/Disadvantages? Experiences?
Having a bc will force all owners to contribute toward the upkeep of the building structure & maintenance of common areas – this is generally seen as advantageous, there is no need to shy away from it. You can consider appointing your managing agent as your proxy to attend to any business relating to the property (or telecon any meeting).
Scott, maybe i didn't explain properly. The properties im shying away from are the ones that dont have a bc. I think there is some rule that if there are less than 5 units there is no need for bc and owners work it out amongst themselves.
Hybrid, Which state is the property in ?
Richard Taylor | Australia's leading private lender
In SA
Hybrid,
With Strata Titles in South Australia, it is a breach of the Strata Titles act if there has not been a corporate meeting held each year. There is some latitude with the actual time frame ( ie a month or 2 ) however these meeting are designed for records to be kept, insurance to be updated and maintenance to be organised. The advantage to a potential purchaser is that any anomolies can easily be seen and or avoided.
There is NO exception with meetings, even 2, although it is usually an informal metting.
I am a Real Estate Agent in Adelaide and am often confronted with owners who have not had meetings, however, can usally ascertain the areas of concern that could affect the sale, such as funds, maintenance and insurance.
There are still several unit titles available in SA, depending on the age of the property and that will also be a consideration, Newer or newest units are now Community Titled introduced in 1996, Strata Titles for property between 1988 and 1996 and then there are older titles such as Moiety or company titles.
There are a number of units available in Adelaide that do not have any issues with meetings etc and I would suggest that if there are potential issues with the meetings, or anything else, research it further.
The only other suggestion I would make is to the rates associated with the cost of running the strata,.
IF you need further information, let me know
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