Thinking of tinkering with the plumbing or allowing your tenant a canine friend? Think carefully. When you buy into a strata-titled property bear in mind the five most common body corporate mistakes investors make every purchase.
1: Forgetting the financials
In the rush and excitement that goes into buying a unit, many investors fail to have a professional scrutinise the books and records of the owners corporation. This leaves them clueless to its current finances and unaware of the issues it might be facing.
2: Not looking at the repairs
Investors just as easily forget to see what the main targets of repair work have been in the past and whether repairs have been done quickly. This is usually as simple as getting a hold of past committee meeting minutes.
3: Getting caught up in the now
Distracted by the unit’s current sleek good looks and new façade, many buyers fail to check if the body corporate has adequately planned for future maintenance expenses. They also fail to make sure that the sinking fund stacks up to long-term maintenance planned for the future.
4: Being a ghost landlord
Many investors never bother to find out who the contact person is if problems come up. The solution is to take an active interest in what goes on. Attend the annual general meeting and consider becoming a member of the building’s executive committee.
5: Falling for agent sweet talking
Hanging on every word their real estate agent says, many buyers forget to double check promises that the building is pet friendly. Then it turns out that pets are about as welcome as hawkers selling useless trinkets or people trying to get new members to join their religious group.