The cost of owning property through a strata title is frequently significantly lower than the cost of being the sole owner of a standalone building. A typical monthly mortgage payment will not be much higher than the rent for a comparable apartment, townhouse, or condominium unit.
When it comes to buying strata title property, whether you're looking for a new place to live or simply looking for a good investment, the value of strata title property tends to rise over time, and it's usually easier to sell later when you're ready to move on or cash out.
There are numerous benefits to owning a strata title including the following:
Use of open air space
The "air space" of an individual apartment, unit, or townhouse is typically included in the ownership of the property in a strata title scheme. The larger structure or subdivision, on the other hand, is not included. The lot boundaries established in the strata plan govern the available air space on your property. And frequently refer to anything on the inside of the building, such as the walls, ceilings, floors, and permanent fixtures like toilets and kitchen counters.
Indoor/outdoor areas such as balconies, courtyards, and pergolas, as well as spaces between buildings, can all be considered air space.
In addition to your personal air space, strata title ownership allows you to make reasonable use of any shared common areas, facilities, or amenities that are part of the larger property. After all, your strata levies are responsible for their upkeep.
Keeping the property in good condition
The solitary owner is responsible for the upkeep and maintenance of a freestanding property, and you and you alone are responsible for these costs when you are the only owner.
In a strata title system, however, the day-to-day operations of the building or property are overseen by a legal organisation known as the body corporate. They plan for routine maintenance and make arrangements for any necessary repairs. Individual owners in a strata title scheme are required to pay strata levies quarterly into an administrative fund managed by the body corporate. This fund is used by the body corporate to pay for the upkeep of the property.
Strata levies are also used to pay for things like rates and taxes, as well as the upkeep of common areas, which is critical for maintaining the overall value of the building or property.
Bylaws to protect assets and improve the quality of life in the community
Each apartment complex, gated community, and cluster of townhouses has a distinct layout. As a result, before purchasing a property within a strata structure or subdivision, it is critical to be familiar with its by-laws.
It is the responsibility of the body corporate or its management administrator to keep track of the bylaws that govern their building. They oversee developing the rules and regulations for a complex or community. In many cases, the by-laws of a strata title property will determine whether it is a good fit for your lifestyle – or investment portfolio – in the first place.
By-laws can have an impact on everything from pet ownership to garbage disposal. They are an important part of a structure's or community's overall safety and security.
Understanding your property's strata by-laws before purchasing it is the most effective way to avoid conflict and conflicts later. And following these guidelines is the best way to get the most out of your strata title property investment.
Making use of common areas
Because strata title properties share common areas, they frequently include access to a variety of communal facilities.
Swimming pools, gyms, covered BBQ areas, shaded picnic areas, communal laundry facilities, and even a thriving community centre are examples of amenities that may be available. Owners of strata title properties have access to a wide range of on-site facilities at a low cost due to the shared ownership structure of strata title properties. All of this while never leaving the comfort of their own homes or paying anything other than their quarterly fees.
Community safety and security
Living in a strata titled property brings you closer to your neighbours than living in a standalone home would. As a result, you're bound to develop relationships with the people who live in your immediate vicinity.
When you buy a strata title property, you're also buying into a close-knit community of neighbours who understand and share your property-related concerns. Strata meetings and social activities are held on a regular basis in many strata title systems.
Furthermore, in addition to having concerned neighbours, strata properties are frequently outfitted with additional safety features that are not always present in freestanding properties. To protect their larger financial investments, many apartment buildings are now outfitted with video surveillance systems and automated door buzzers. As a result, an increasing number of new subdivisions are opting to be "gated communities."
Strata title properties can be an excellent investment opportunity.
Of course, not everyone is suited to strata title. Strata title, on the other hand, is an excellent option for people who don't want to deal with the costs and upkeep that come with owning a freehold property but enjoy the idea of living in a community.