I’m a first home buyer looking to purchase an apartment as a PPOR in Sydney. I’m considering an apartment in a 1970s 3 storey walk up with 30 units. The strata is self-managed and there hasn’t been an AGM since June 2018 “due to COVID-19”. The sinking fund balance is $280k but there is no capital works plan. My first reaction is that these are huge red flags and I should just walk away, but I wanted to get a sense of whether I’m overreacting. Is it worth paying my solicitor to review the strata report, or will they just point out the same issues?
$280k is a Capital Works balance many complexes wouldn't have So this is seriously worth looking into. What is the current levies and admin balance ? Better to buy in a 70's complex than anything after 2010 (or earlier) Self managed isn't a bad idea (strata manager fee's suck the life/funds out of a complex). Though no strata AGM is a worry, as this could mean a select few of the committee are retaining total control by default (there's no reason why a meeting hasn't been held over the term stated, and the Body Corp has not met it's legislative requirements now!).
Thanks for your response! Strata levies are $630pq and the admin fund is approx $35k. I’m definitely looking for an older building, and I do see the appeal in self-managing. I’m just worried that the management is a bit too casual with the lack of maintenance plan (which is also required by the legislation) or regular meetings.
That is an area where a strata manager can add value ie compliance but it comes with a cost. Sinking fund is healthy but is anything committed? Where is the money to be spent & when? Does the place run on the smell of an oily rag/fixed on a needs basis or is there some degree of planning of expenditure? Do the common areas look poorly or well maintained eg lawns, gardens, foyers, gutters, painting, railings etc? If it appears well maintained, then they may know what they're doing (or some of the owners do alot of the heavy lifting).
As per @Scott No Mates comments In a complex I own a lot in..... I took over the gardening re, then various other maintenance. As I had an interest I went over and above, eventually when everthing was well above standard they terminated me (leaving several invoices unpaid/disputed) ! 8 weeks later the gardens (hedges) are already being neglected..... Am ready to sell and take the profit (before it all turns to ****).
