The prospect of buying a strata unit can be confusing and stressful if you’re not familiar with the process.
Therefore, an Illawarra property research expert and podcaster has offered a step-by-step guide (see below).
Coastal Strata is a property research company based in Shellharbour.
Last year, they launched a free podcast, Hello Strata. It is hosted by managing director Craig Baylis.
On the show, Mr Baylis refers to himself as a “straight-talking strata expert”, and the episodes go behind-the-scenes of his day-to-day operations.
Mr Baylis said among the more common topics he’s asked about – and has addressed on the podcast – is how to buy a strata unit.
“Purchasers are often concerned about the possibility of defects and special levies,” he said.
“They’ve probably heard horror stories from friends and want to make sure their property isn’t affected by this.”
Assemble your team
Buying a unit is a legally binding transaction. Therefore, you’ll need experts in your corner such as a mortgage broker to obtain home loan pre-approval, and a conveyancer or solicitor to review the contract for sale.
With your team assembled there’s less chance of delays when you start your search.
While house hunting can be fun, the process can be frustrating if you keep missing out on the perfect property. Consider the experience of experts when deciding which areas to target and what sort of home to buy.
The pre-purchase inspections
Anyone buying a strata unit should gain insights into the strata scheme to which they might be joining.
Strata Inspection Reports can provide you with the knowledge to negotiate or to provide reassurance and insights.
With these insights you can avoid costly mistakes by making good decisions early.
If you require information on the physical condition of the unit you may also wish to obtain a Building Inspection Report.
Negotiate and exchange
So you’ve found the unit and you’d like to be the successful purchaser.
After you’ve negotiated the price and terms you’ll need to meet your conveyancer or solicitor to review and sign the contract.
Much of the pre-settlement arrangements will be handled by your mortgage broker and conveyancer or solicitor.
However, you’ll need to keep in touch, and arrange items such as contents and landlord insurance on your unit, and also building insurance if you are buying a community or neighbourhood lot.
This is the day your legal representative meets with the vendor’s representative and hands over the cheques.
Once settlement has gone through, it’s time to collect the keys and move in.
Contact your strata manager and make sure they have received notification of the sale. You don’t want to miss important correspondence such as levy notices and meeting agendas.