I still remember stepping into that sunlit corner apartment and thinking, “This is it”. The timber floors, the water glimpses, and the café just around the corner.
Everything felt perfect. So perfect, in fact, that I almost skipped the ‘boring’ due diligence.
I say “almost” because, being a strata lawyer, there’s no way I wasn’t going to do a deep dive into the building’s books and records before buying in.
No matter how dreamy the view, there are a handful of vital checks you simply can’t afford to skip before buying a strata apartment.
Here are three things I now drill into every client (and whisper to my friends) before they sign on the dotted line:
1. Dig into the finances
It’s tempting to fixate on granite benchtops and European appliances, but the building’s balance sheet is your real barometer of health. Be sure to look at the following:
Sinking fund forecast vs actuals
Every building should have a 10-year capital works plan (aka: sinking fund forecast). Check the projected balance against the actual bank balance – a shortfall today means a special levy tomorrow.
Special levies on the horizon
If major repairs are looming, like a roof replacement, lift upgrades or waterproofing, and the sinking fund can’t shoulder the cost, you’ll be hit with a one-off bill. Think thousands, not hundreds.
If that’s on the cards, you can negotiate with the seller to knock a similar amount off the purchase price, as long as you haven’t yet signed the contract.
Building defect reports
Hunt for engineers’ reports or scopes of work in the body corporate’s records. Cracking balconies? Unresolved water ingress? Those are often hints of an impending special levy.
Tip: Arrange a formal ‘books and records’ search with the strata manager, which will help reveal the above information. Chat to residents during the open for inspections. There’s no better gossip on lift breakdowns or pool maintenance than from someone who lives there.
2. Decode the by-laws
By-laws are more than dry rules; they govern your day-to-day happiness (and sanity) in strata.
Pets
If you dream of a rescue pup, be alert to by-laws that ban pets, or heavily regulate their presence in the building. Blanket bans on pets are now illegal, but that doesn’t mean a building won’t make you jump through some hoops before you can welcome your new furry (or feathery) family member.
Renovations
Ready to rip out those 1970s pink tiles? Any work affecting waterproofing, like bathrooms or balconies, needs body corporate approval. Approvals can take months, so build in time (and budget) for the bureaucracy.
Short-term letting restrictions
If you’re planning to make your fortune by renting the place out to holiday-makers and weekend party goers, you might need to think again. By-laws can (and often do) prevent investor-owners from using their property for Airbnb-style short-term letting.
3. Get a feel for the community vibe
You’re not just buying four walls. You’re buying into a community. Consider the following:
Committee dynamics
The strata committee is the one steering the ship. When you inspect the books and records, try to read some of their emails to get a feel for how they communicate with each other. Are they a collaborative group of well-meaning owners, or dominated by one or two self-interested voices?
A healthy committee dynamic means smoother decisions, fewer disputes and faster responses to maintenance requests.
Neighbourhood energy
Spend a weekend at a cafe next to the building or hang out in the lobby. Do neighbours wave hello or stop to chat to the building manager? That sense of connection (or lack of it) can be the difference between festive rooftop parties and whispered corridor complaints.
Even the slickest apartment can lose its shine if the people inside aren’t pulling in the same direction.
The takeaways
Buying an apartment can feel like falling in love: thrilling, impulsive, and maybe a touch irrational. But as someone who’s seen dreams expire faster than a new house plant, here’s my shortlist of must-dos:
- Keep your eye on the numbers: Buying into an already financially healthy and fiscally responsible building is going to help you avoid levy shock.
- Read every line of the by-laws: no one wants to hear “but you should have known that before you bought in”.
- Inspect for more than style. Marble in the bathroom may be a showstopper, but cracks in the balcony tiles and mould on the lounge room ceiling are red flags.
- Tune into the building’s heartbeat. A collaborative committee and friendly neighbours make a house a home.
Use this guidance to stay grounded the next time you walk into your dream apartment, and you’ll be ready to make a decision with your eyes wide open and plenty of peace of mind.
