Buying a strata unit: What to look out for before signing the papers
If you’re considering buying a unit or apartment in a strata-managed building, you must look at the state of the overall building and common areas.
If you’re considering buying a unit or apartment in a strata-managed building, you must look at the state of the overall building and common areas – not just the unit you want to buy. This is because the repair of common areas must be covered by the owners collectively, thus raising your Strata fees if the common areas are in disrepair.
Common areas in a Strata property include the entrance, corridors or walkways, shared parking bays, gardens, pool areas and the like. Here, we discuss what to inspect when checking out the building before buying.
1. Potential water damage
Severe water damage can destroy a property from the inside out or from the outside in. If left to fester, water damage can cause dampness and mould and even lead to the building needing to be evacuated to treat the issue if it becomes a health hazard.
Check for signs of dampness and mould inside your unit and along the corridors of an apartment block or the veranda outside units. Also check the soil in gardens or walkways for signs of being waterlogged.
2. Cracked walls
This applies mainly to all concrete or stone walls, internal and external walls of the apartment block, boundary and retaining walls, and pillars in underground carports. While hairline cracks can be overlooked, deeper cracks on the actual wall structure can be a sign that there is a big issue with the foundations of the building. Cracks exceeding 2 mm in width are a clear sign that something is terribly wrong and require extensive and costly reparations.
3. Footings, floors, roof structures, ceilings, external structures
Apart from checking for cracking in walls and concrete slabs, also look out for cracks in the pavement, internal common flooring, roofs, and external structures such as patios or pergolas. The same should be done for pool floors and car parks. As with cracked walls, flooring and roof cracks can be a warning sign for sinking or misaligned foundations.
4. Pest damage
Pest infestation is a serious business that can cost property owners a lot of money to eradicate. While you can include in a lease that a pest issue in your unit must be paid for by the tenant who caused the infestation, a building-wide infestation must be taken care of by the Strata management company and paid for collectively by the owners. Check for rodent holes and droppings in corridors, ant or cockroach infestations in common gardens, walkways and refuse areas and timber window frames for signs of termite infestation.
5. Major maintenance items, roof covers, gutters, downpipes, etc.
Aside from looking for a structurally sound facility, another thing you should look for is the upkeep and presence of items and structures that “protect” and “maintain” your facility. Things like roof covers, gutters, downpipes, storm windows and proper sewage facilities.
While you can’t carry out a thorough check when first inspecting a unit for purchase, these checks should help you to eliminate any properties that are obviously going to be more trouble than they’re worth. Once you find a property that you think passes these checks, it’s important to carry out a professional pre-purchase building inspection before making the final commitment to purchase.
About the Author
Brad Porteus is the Managing Director of BSP Construction Consultants, Strata investment property inspection and Pre-purchase Building Report specialists in Perth, Western Australia. You can find Brad on Google+ and LinkedIn.