Factors to consider before purchasing a property with a strata title
If you’re considering purchasing a property that’s part of a strata title, here are some factors to consider.
Strata ownership is a unique form of property ownership that allows individuals to own a portion of a larger property complex, while sharing responsibility for its maintenance and management with other lot owners. If you’re considering purchasing a property that’s part of a strata title, here are some factors to consider.
Strata inspection reports
Before purchasing a strata property, make sure you obtain a strata inspection report. This report provides valuable information about factors that could impact future strata levies or property value. This includes:
- The property's financial health
- Maintenance history
- Insurance coverage
- Any potential issues
Strata fees and levies
To fund the maintenance and management of the common property, the owners corporation collects fees or levies from each lot owner. These fees are typically paid quarterly, and can vary widely based on factors such as:
- Property's age
- Amenities
- Ongoing maintenance requirements.
These are ongoing costs that will need to be factored into your budget. Learn more about ongoing costs associated with owning a home here.
By-Laws
Strata properties have a set of by-laws that outline the rules and regulations governing the property. These by-laws can cover topics and issues that come with living within a larger property complex such as:
- Renovations
- Noise
- Pet ownership
What if I’m an investor?
Strata properties are often considered by property investors. While The property owner is responsible for strata fees. It's advisable for property investors to Recommend seeking tax advice on the deductibility of strata fees, as they may be partially tax-deductible depending on local tax laws.
Buying a home and want to learn more? Discover more here.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
