Guide to Buying Property with Other People
Buyers are often attracted to townhouses and units for many reasons, such as their convenient location close to public transport or their place of work, and the availability of lifestyle amenities and services.
Let’s also not forget the price factor. With property prices on the rise in sought after inner city suburbs, more buyers are turning to townhouses and units as a more affordable alternative.
It’s important to recognise that buying into a strata titled townhouse or unit means that you are not only buying the title to your individual unit or townhouse, but also taking on the wider responsibility to the other owners in the development.
This happens by belonging to the owner’s corporation (body corporate).
All the owners of the properties in a development are members of the owner’s corporation, and as such are responsible for things like maintenance, insurance, and any necessary improvements to the common property.
Before you buy this type of property, it’s important to obtain an owner’s corporation certificate, which should be forthcoming with the vendor’s statement as part of the searches conducted prior to the buyer signing the contract of sale. This will inform you whether the owner’s corporation is planning any cosmetic upgrade or structural works to the common property, along with an estimate of the costs.
On top of the purchase price, unexpected costs associated with major renovations or repairs can be a huge financial stress, so it pays to do your homework and check with the owner’s corporation regarding these and any ongoing costs.