Strata Title
Property Management
A form of property ownership where individual lots (units, apartments, townhouses) share common property managed collectively.
Full Explanation
Under strata title, you own your individual lot and share ownership of common areas like driveways, gardens, and building structures with other lot owners. A strata report (or records search) before purchase reveals the financial health of the scheme, any planned special levies, disputes, and building defects. Strata-titled properties typically have lower entry prices but come with ongoing levy obligations and by-law restrictions.
Example
You purchase a strata-titled apartment and pay $1,050 per quarter in levies that cover building insurance, maintenance, and the sinking fund.
Frequently Asked Questions
Should I get a strata report before buying?
Absolutely. A strata report (around $200 to $350) reveals the financial position of the scheme, any upcoming special levies, active disputes, and building defect claims. It is essential due diligence for any strata purchase.
Can the body corporate restrict how I use my investment property?
Yes. By-laws can restrict renovations, pet ownership, short-term letting (e.g. Airbnb), and noise. Always review the by-laws before purchasing to ensure they align with your investment strategy.