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.
Today, we want to outline for you the benefits of investing in strata-titled property to give you a better understanding of how it works.
SAVES ON LARGE LUMP SUM OUTPUT
A strata property is when two or more dwellings share the same piece of land. How many dwellings are actually on the property is completely in the hands of the developer; it is also what the local council will allow.
By purchasing a property in this way you are generally only paying for the building and not the most expensive component—the land. This is due to the land being shared by all stake holders so it spreads the cost over each vendor.
Upkeep and the Body Corporate
The upkeep of the communal areas such as driveways, gardens, pool and gym. are all managed by the body corporate. Each vendor or owner contributes to the body corporate fund and these funds are used to carry out maintenance and repairs.
This financial contribution frees up your time to pursue other investments or pleasures.
Banks are more than happy to lend as high as 95% LVR (Loan to Valuation Ratio) on strata titled property. What this confirms is that this form of investment is a sound choice.
Total Purchase Control – Buyer Beware
As a purchaser you have total control over how you purchase this style of property.
You can take the hands on approach of inspecting existing property. This gives you a bricks and mortar feel, as well as allowing you the opportunity to check out views, potential improvements, and general condition of the property.
Another popular way to purchase this style of property is off the plan. This is when you agree to buy a particular property prior to it being built.
This form of investing can be very lucrative for both parties but has also been used as the hunting ground for charlatans so you MUST do your due diligence if you intend to invest in this manner.