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Are you thinking about buying an apartment and already have one in mind? The next logical step is to call professionals for a pre-purchase apartment building inspection.
Buying any type of property is a laborious process, especially because it requires a significant amount of investment in terms of time and money to do so. You have to go through tons of paperwork and many other technical aspects of the purchase process.
Construction is another important aspect that requires you to be thorough. The type of materials used and how they are finished can not only impact your buying decision but also the future and the present value of a property.
It is important that you dedicate enough time and resources to get the pre-purchase building inspection done properly. Otherwise, you might end up getting unpleasant surprises and thousands of dollars’ worth of repairs.
The following areas are thoroughly inspected and analyzed during a typical apartment building inspection. This not only tells you how much a property is worth, but also gives you an estimate of how much it may cost to undertake repairs.
- Internal walls
- Roof cavity
- Roof exterior
Most home buyers think that when you are buying a house, a pre-purchase building inspection is all that is needed. However, buying an apartment or an apartment building is a bit more complex than buying a house. Most apartment buildings are strata-titled properties, and as such, a strata inspection report is also required. Before we get into how strata inspection reports work, it is important to know what exactly a strata-titled property is.
Strata Titled Properties
A strata title is issued to owners of properties that have shared areas. This mostly includes multi-level apartments and portions that have some commonly shared or adjoining areas.
When it comes to strata-titled properties the inspection is not restricted to the interior or the immediate exterior of a particular unit. It also covers the details of the entire apartment building. When you are buying such an apartment, a strata inspection report will provide you with the following details.
- The building’s entire history and details of any existing defects
- The financials for sinking and administration
- History of renovation works on the building
- Any pending construction work on the building
- Special levies
- Any claims by the homeowner for warranty
- Insurance details
- Any disputes within the strata scheme
- Compliance with municipal authorities
- Existing legal matters, if any
- An account of all the expenses incurred on the building for the last 2 years
A strata inspection report also includes a 10-year budget analysis that helps you figure out whether it is a safe investment or not. Also, if there are any SMM act compliance issues, the report highlights that as well.
The strata inspection report is very helpful in predicting the future standing of the building. However, remember that a strata building inspection report is considered a corporate record. Mostly, this report only includes the things which have been brought to the body’s attention.
According to various estimates, 80% of all new buildings have some kind of defects when inspected. Many buyers do not know much about construction, especially when it comes to analyzing the condition of an apartment building.
These strata schemes dictate that the owner is liable for other expenses as well. This includes monthly maintenance charges and, in some areas, water charges as well. Also, most people are not aware that the owner of a particular unit in an apartment building has to contribute to the renovation of common areas.
There are also many by-laws related to a particular apartment building and that you should qualify for them first if you are looking to reside there. A strata inspection report will include all this information.
If you want your investments to be safe, it is recommended that you make sure a proper pre-purchase apartment inspection and apartment building inspection have been done. These, combined with the strata inspection report, will help you make an informed decision.