Pros & cons of strata living.
Are you are thinking of buying a strata unit or townhouse. Then, it may be worth considering some of the pros and cons before you decide.
1. Lock and Leave
Generally, the strata company is responsible for common property such as gardens. So, you can pack your bags and go on holiday confident the strata manager will handle the basic needs at the property.
2. Lower Purchase Price
The beauty of strata is that a relatively small parcel of land can yield multiple strata lots. The benefit is that the strata lots can be sold at a lower total cost than a stand-alone house in the same area.
3. Affordable Start Into Property
As an alternative to a house and land package on the outskirts of the city, the first-time buyer has the option to purchase a strata property closer to the many facilities the city can offer.
The lower comparative price of strata properties allows the buyer to purchase into an area that may otherwise be outside their scope. If the buyer wants to live near the city centre or beachfront, strata living is a good option.
5. Extra Facilities
A standard feature of modern strata complexes are the extra facilities like a BBQ area, pool, gym, and sauna. Relax and enjoy.
6. Shared Maintenance Costs
With multiple units, maintenance and repair can be managed cost-effectively. The strata manager pay for the maintenance from the budgeted levies paid by all owners. By sharing the cost all owners benefit from reduced costs.
Your friends have moved to the outer suburbs with few facilities and grinding travel times to get to work. A strata unit give you the option to live close to entertainment and cultural areas. Proximity to public transport allows you to be at work in minutes.
8. Community Living
A lot of benefits can come from a community of people living and investing together.
The presence of your neighbours will multiply the security measures already in place. Community decisions on security policy and installation of equipment can have a major impact on the all-around security and well-being of residents.
Residents who get to know their neighbours and socialise, often come together to form strong and co-ordinated Councils that effectively manage the property.
Downsize from your large family home into a strata property can give you the option to move to:
• an upscale luxury apartment.
• a strata property in a more desirable location.
• strata property that provides all the facilities you need and never had before.
• modern strata property where you don’t have to do any repairs and maintenance. Sell your lawnmower and relax.
It is possible to pocket some extra dollars and select a strata property to fit the life you want.
10. Professional Management
Most larger strata schemes engage a professional strata management company. An accredited and experienced strata manager will provide a high standard of maintenance, security and advice.
1. The Neighbours
In strata, you cannot choose your neighbours. Parking issues, excessive noise and inter-personal disputes can reduce the enjoyment of living at the property.
2. Additional Strata Levies In Aging Buildings
Strata levies are a cost-effective way to share the costs of insurance, maintenance, repairs and property management. But, additional fees may apply for aging buildings especially where a wide range of amenities are available such as lifts, gyms, saunas, rooftop gardens and BBQ areas.
3. Lengthy Decision Making
The pace of decision making can be slow. For many decisions, the Council of Owners has the final approval. For major items, a majority vote at a general meeting of owners is required. Your request to install an air conditioner before summer may be too late if your Council only meets every 3 months.
4. Renovation Limitations
If you plan to make any changes to the structure or appearance of your unit, approval is required. This can be a lengthy process and success cannot be assumed.
Internal disputes in the Council of Owners can seriously diminish the ability of the Council to perform its duties. Similarly, poor management by your strata management company may limit the capacity of the owners to “get things done”.
6. Loss of Value
The strata property has a minimally land component, and the value of the property is concentrated in the building and facilities. If owners do not make the necessary maintenance and repairs as the building ages, the property may decline in relative value.
7. More Responsibility
Owners in a strata property have additional responsibilities, such as compliance with by-laws, behave in a way that that does not offend other residents, and become involved in important decisions of the property by voting at the annual general meeting.