Buying into a multiple lot scheme, either as an investor or a permanent resident, can be a convenient and financially prudent arrangement in the right circumstances. However, it is a different type of ownership when compared with buying a traditional house on its own lot. As such, there are a number of important issues and obligations that lot owners must be aware of, to get the best out of their investment or new living arrangement.
When you buy a property that is an apartment, unit or townhouse (unless you buy the whole building) it will come under a title of either ‘strata’ or ‘company’. At WA Strata Management we hear people ask all the time for clarification of these two titles so we feel that it is important for you, the buyer, to be aware of what it all means. So what do these terms mean and what do they mean for you as the buyer of the property?
When you purchase property for investment that is exactly what it is—an investment.
It is important not to let your own personal desires and values get in the way of making a business decision. For many, the thought of buying property is the way to go towards building a sound future for your family and retirement.
When a purchaser buys into a strata title property a legal relationship is immediately created between the new owner of the unit or apartment and the strata company. In fact, as a registered proprietor, the new owner automatically becomes a member of the strata company, incurring obligations and responsibilities. The vehicle through which these are communicated is a document called the Management Statement.
Each strata style property will attract its own set of bylaws. These bylaws can vary, usually based on the size and style of the property.
By this we mean if you live in one half of a duplex your requirements will be different from those of a multi-story apartment building.
Buying into a group title scheme is an excellent way to get a foothold in the property market for both owner-occupiers and for a rental investment. For busy people with no time to look after a house on a suburban block and for first-home buyers with small deposits, units and apartments are practical and affordable.
Many of us like the idea of downsizing and moving into a unit complex that has the amenities we would like to enjoy without all the hard work that goes with it.
For instance, many larger complexes have barbeque and entertainment areas, a gymnasium, swimming pool and even a sauna.
It was the Greek philosopher Aristotle who first noted that “man is by nature a social animal”, a concept that has since been explored by many others. In primitive times humans lived in groups because they depended on each other for survival, and families and societies gradually developed as a result. The general consensus now is that humans live in groups because they rely on each other for their well-being.
The term ‘Strata Scheme’ is used to describe a residential complex that contains two or more separate dwellings. that is, anything from a duplex to a multi-unit dwelling.
You are able to purchase a strata dwelling, either prior to building, during or after completion.
For the newcomer to cluster or group housing the world of strata management can be confusing.
Cluster housing is a term used to refer to shared residential living schemes consisting of three or more lots on the same land. This figure can expand to as many as has been approved for that particular property.