Why Is It Important to Have Information About Strata Management Charges and Financials?

Have you ever wondered what the financials of a strata unit include? Strata management accounts are important to know about before investing in a strata unit because these figures will determine how much money is required for maintenance fees, insurance premiums, and other related charges. It’s important to know this information not only when buying but also when making decisions on whether or not to rent out your property. A thorough understanding of these numbers can help make sure that your investment is worth it. The easiest way to get this information is to get a strata inspection in Sydney because these reports will outline all the information and details you require to make an informed decision about the property.

Before you invest in a strata property, it’s important to know about the strata management charges and financials. For example, what are these figures? What do they include? Why are they included in a property inspection strata report in Sydney?

Things mentioned in a strata report include such information as:

• Financials and management accounts (payslips of the strata manager, any reports or emails from builders).
• Building defects list (this is a great tool to determine if there are any problems with your property which need to be fixed before you move in).
• Warranties (there may also be information on when they expire and how long it will take for work on your new home to get done after purchase. This is important as delays might push back moving into the unit).
• Another related point worth mentioning here is that buying off plan can sometimes mean getting caught out by unforeseen changes to construction timelines/costs, so make sure you know what lies ahead.
• Insurance policies and what is covered (e.g. is your insurance up to date? Are the contents covered as well as building and structure?).
• Bank statements (make sure you see these, don’t just accept what they tell you on face value).
• Loan accounts (it may be that there are some loans or mortgages attached to the property which need resolving before closing or moving in). If this is not dealt with, then it might not only impact your ability to move into the unit but also cause future problems down the track if payments aren’t made on time. It is important for buyers to be proactive and work through any issues prior to buying a place so they know exactly where they stand once contracts are signed.

Knowing how much you will need to pay each month in terms of levies is also important because it lets you understand how much the unit will cost. You need to know what these costs are so you can work out whether they will fit within your budget. An important part of understanding other fees which might be charged, such as for using amenities like pools etc., is knowing who looks after those areas and ensures they're cleaned regularly (if at all) and maintained appropriately. If something goes wrong then having information about exactly who would fix it helps buyers avoid any unexpected expense when moving into their new home. It’s also important though not just from a financial perspective but also one of peace of mind. If you’re moving into a building then it can be daunting to know that things might not always run smoothly. Having an understanding of how expenses are managed by who, and what the financial situation is like right now for your new home will help with this peace of mind. It gives buyers confidence in knowing exactly what they will need to do or take care of when it comes time for them to make decisions about their strata fees as well as how much money they will have left over each month after all these charges are taken out.

If your strata inspection report shows you something unusual or out of the ordinary in your strata management account and financials, it might be a good idea to ask more questions or do some research on why this is. You shouldn’t feel shy about asking questions when it comes to something that doesn't seem right with the current information you have about your building's strata fees and charges so if there seems like there may be an issue, don’t hesitate to bring up concerns. Sometimes these items aren’t necessarily bad but they could become issues later down the road. It never hurts to know what is going into your unit before making such a big purchase and investment decision.

The frequency of major repairs and maintenance work will show you how often these costs are incurred. This will allow you to forecast how much they will impact your monthly expenses.

As a potential client, it is important to know what you’re getting into. If your strata management company doesn't provide this information ahead of time then they may not be the right fit for you and it may be an indication that you should move on.