As discussed last issue, if you are buying off the plan, there can be financial risks involved. The property market has a history of fluctuating prices so you could end up losing money by the time the project is completed. Or the opposite could also hold so it is always wise to consult with your solicitor when buying off the plan.
Units and Townhouses are mostly sold as strata title which means you are not only buying a home, you are buying into a group of fellow owners by being a member of the owners’ corporation known as the “Body Corporate”. This requires the payment of ongoing strata levies which generally go towards ongoing property maintenance even when your unit is not affected.
These strata levies (known as an Administrative and a Sinking Fund) are ongoing and are important to assist in funding all works that the complex may need. They should be considered with your solicitor so any current or future maintenance projects contemplated by the body corporate are known to you before you buy.
The Contract for Sale for units and townhouses are very similar to a house contract –attaching similar documents describing the property such as a copy of the title deed, and the Strata Plan.
Next month, we will continue our series of “Buying a Home” with ‘Once you have decided to buy’ which should provide helpful suggestions when you are out property hunting for your first and next big investment.
Further reading –