Is Investing In a Strata Scheme a Good Business Decision

Is Investing In a Strata Scheme a Good Business Decision
  • Opening Intro -

    Living in a strata scheme essentially means that you own your apartment, or in other words lot, but share the rest of the common areas with other residents in your building.

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Although it might sound a bit confusing, strata scheme comes with various possibilities that will make living with your neighbors as comfortable and harmonious as possible.

Entitlements

Entitlements that the owner of strata scheme owns are shown by the lot boundaries in the strata plan. One of many benefits here is that each lot owner has the right to use the fabric of their building and the access ways, grounds and corridors with the other owners.

Every owner in a strata title has a share in the common property as well. This is referred to as a unit entitlement and it decides voting rights. Each owner contributes to the maintenance of the building through strata levies and that includes insurance premiums too. 

Owners Corporation

Owners Corporation, also commonly known as the body corporate, represents a legal entity that compromises the lot owners in the strata scheme.

It is meant to deal with all the rules surrounding the communal building or in other words, shared property.

Owners Corporation consists of a certain number of members. They share ownership and responsibilities for the shared property in the strata title.

That includes communal areas like gardens, pools, stairwells, lobbies, and building exteriors.

The body corporate is, therefore, another positive trait of the strata scheme because it makes it easier for all the lot owners to regulate their common property.

Strata Committee

The next positive aspect of strata scheme is a strata committee. A strata committee represents the interest of all lot owners in the building. Its goal is to ensure state strata law that is followed by strata’s bylaws as well.

It also has a responsibility to enforce any decisions brought by strata meetings. In some particular cases, strata committee has a job to look after the administration of Owners Corporation as well.

Joining a strata committee can offer you a great opportunity to launch any projects that can improve the building. This will give you a chance to contribute to making a living inside strata scheme as comfortable as possible.

Strata Bylaws

Life in a strata scheme is regulated by strata bylaws. These laws are designed to ensure the safety of all the residents as well as keep the harmonious communal living. These bylaws are supposed to cover any potential issues no matter how small or big they are.

They are meant to cover anything from the garbage disposal, parking issues, and noise restrictions, to bigger matters such as renovations and common property changes.  They merely exist to help you better understand bot the rights and restrictions you have when living in a strata scheme.

Also, strata bylaws are not made to be oppressive and they are not allowed to ban or prevent you from having assistance animals. Another great thing is that if there is ever a misunderstanding or an issue you feel like you can’t solve, you can always call upon professionals such as Eling Strata Management and they will help you out in those specific cases. They deal with strata facility maintenance and will be able to help you with any issue about the property you might run into. 

Strata Levies

Strata levies or strata fees stand for financial contributions that every lot owner has to regularly give towards the overall maintenance of the shared strata property. The good news is that you only have to pay as much as you need to. This means that these financial obligations are calculated by the size of the lot that you own.

The one-bedroom unit will have lower levies than a three-bedroom unit. And those buildings which include regular maintenance of pools, lifts, and gyms tend to have higher levy costs. Strata scheme has three main types of strata fees – administration fund levies, sinking fund levies, and special levies.

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Strata Report

Lastly, another great aspect of buying into a strata scheme is that you can get a sort of a preview before you even decide whether you want to live in a strata title. It is conducted by a Strata Inspector who is obligated to go to the Strata Manager’s office and inspect the strata records.

The information you get in this report includes everything you need to know about the current status of the strata scheme. It will give you an insight into financial contributions, levies, specific bylaws, safety issues, and so on.

This report will ensure that you get a full overview of what might potentially be your future home. It will help you out and make sure you know everything you want in advance, thus assisting you in your decision-making process.

Conclusion

In conclusion, buying into a strata scheme is a great and highly beneficial business move, because it allows you to have many alternatives. Strata scheme will make sure that all lot owners live comfortably and in peace, knowing that strata bylaws and levies are taking care of everything for them.

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