Are you considering buying a property in a multi-unit building? If so, you need to get up to speed on the world of strata and what it means for you as an owner.
Under the strata system, each property owner has ownership over their individual lot, but they also share ownership of the common property - such as hallways, gardens, elevators, and recreational facilities - with other lot owners. Strata schemes are a way to manage the use of these shared facilities and common areas, and in NSW they’re governed by legislation which sets out the framework for their creation, management, and regulation.
One of the most significant responsibilities of owning a property in a strata scheme is paying regular strata levies, and these cover the expenses associated with maintaining common property. When it comes to overseeing the management and maintenance of common property, a strata committee made up of elected lot owners is responsible for setting and collecting strata levies, enforcing by-laws, and maintaining financial records. Before purchasing an apartment, it's essential to familiarise yourself with the strata scheme's by-laws, which govern the use and enjoyment of the property, and aim to ensure a harmonious living environment for all residents.
While owning a property in a strata scheme can have its challenges, such as dealing with disputes between lot owners or complying with by-laws, it also has its benefits. The shared ownership of common property means that the maintenance and upkeep of these areas are typically taken care of by the strata committee, reducing the burden on individual lot owners. It also means you might have access to shared amenities, such as gyms, pools, or communal spaces, that may not be feasible in a single-family home.
So, before you buy that beautiful apartment, chat with one of our property experts, and we’ll make sure you understand the ins and outs of strata. With proper knowledge and adherence to the laws and by-laws governing strata schemes, owning a strata property can be a fulfilling experience with many perks.
