Buying an apartment - what questions should I ask

[VPS]

So although I'm a bit reluctant to live in an apartment but I've found one I really like. They were built in 2004 and not just a standard block but obviously designed to be a more aeshetic rather than a concrete box.

What questions should I be asking?

 

[cove]

Water leaks are a common problem in apartments so make sure the supply lines are reinforced for the washing machine,dishwasher, fridge and other water using appliances.
Try a rental in the building before buying if you can.

 

[Pushka]

And the Body Corporate. We have Whittles. Well, wheels turn verrry slooooiwly.

 

[VPS]

Water leaks are a common problem in apartments so make sure the supply lines are reinforced for the washing machine,dishwasher, fridge and other water using appliances.
Try a rental in the building before buying if you can.

No way am I moving again - the next move has to last at least 15-20 years. As I said I know someone who is renting in the building so will be able to ask lots of questions

 

[love_the_life]

No way am I moving again - the next move has to last at least 15-20 years. As I said I know someone who is renting in the building so will be able to ask lots of questions

We love living in an apartment - ours is about 10+ years old now. If you are concerned about things after you move in you should look at going onto to body corporate committee if you can as that would give you a really good idea of how things work. One thing is it can take quite a bit of time to organise things though the BC - for example our building has had a bit of a problem with some window leaks - been going to and fro for a long time and only in the past few weeks have scaffolds gone up to fix them - should point out it is a big job (and most issues on our floor - 7th - just because of the design).

 

[VPS]

OK bumping this again. Obviously the last one didn't come off but have found another one. It's a block of 5 on top of commercial buildings.

Anything else that screams at anyone when commercial buildings involved. Currently a coffee shop and beauticians and one empty below.

Also - the strata fees a $1600pq which I think is expensive. Just waiting for details on last strata meetings and details on sinking funds etc

 

[Buzzard]

Air conditioning. Is the apartment air-conditioned and if not can you install it if need be?
Visitor parking is also something you may want to consider.
$1600 Is about what we pay at one of our places but it depends on what you get. We have 2 swimming pools, one about half Olympic size and the other kidney shaped one quite large, a tennis court, free BBQ's. The whole complex is spotless. I'm happy with the value for money.

 

[Hvr]

It's a block of 5 on top of commercial buildings.

Mixed use buildings like this often have two strata committees, one for the residential part and one for the commercial part. Inspect both sets of books and minutes.

Be very careful to determine if the commercial part has somehow managed to get the residential part to pay many of their expenses. E.g. garbage disposal, water, and energy use.

Make sure that common property really is available for use. Often the commercial tenants will just take over part of it for their business use. And then they exclude the residents, but insist they keep paying for cleaning.

Is there appropriate security between the commercial and residential areas? Make sure the commercial areas do not have access, for any reason, to the residences. It's not uncommon for their customers to just walk through residential areas. This includes residential car parks.

Check car parking, again commercial tenants will insist that all of the visitor parking be used for their customers.

Check strata management agreements, again lots of dodgy stuff happens.
Too often their focus is looking after the commercial tenants to the detriment of the residents.

It can be very risky buying into a mixed use building so take a lot of care and get the appropriate professional to look over it for you. And then when you move in, be active on the committee. You'll see problems before they become too big.

 

[p--and--t]

What type of cladding does it have?

Get a professional to go through the books and the OC minutes to see what problems have been raised and how they're handled.
Are the levies appropriate? Too low and there isn't any money for long-term repairs.
How much money is in the sinking fund and what items are listed to be addressed in the next ten years?

What long-term contracts has the OC entered into?
Do they have any embedded contracts for utilities such as electricity/internet?
How long is the term for the Strata Manager?
How are renewals handled?

Is there friction between residents? What form is it taking? You don't want to walk into a Hatfield/Mc Coy type feud.

How many apartments are let on the short term market, AKA AirBNB. What trouble does it cause, especially on weekends and public holidays?

Is the maintenance up to date? If there are lifts, are they up to standard with a maintenance plan? When are they due for replacement?

These are the basics, there are thousands more to ask and ensure you get appropriate answers.

Good luck.

Great list.

+Check if the Owners Corp is "Owner committee managed" or uses an independent management company. "Owner committee" managed can be a nightmare depending on personalities (tightwards, nosy parkers, tyrants)

 

[pjm99au]

Anything else that screams at anyone when commercial buildings involved. Currently a coffee shop and beauticians and one empty below.

check out what hours of trade restrictions there are on the strata commercial lots. What is a benign use now could be a problematic noisy late night use in the future.

 

[p--and--t]

Be very careful to determine if the commercial part has somehow managed to get the residential part to pay many of their expenses. E.g. garbage disposal, water, and energy use.

THIS!!!

Had an investment apartment where (due to lack of analysis) water usage charges were distributed evenly over the floor space ratio. Restaurants and hairdressers on lower levels going through water like it was their job to empty the reservoir on a daily basis.

Took a long time and disputation to split the commercial water bill away from the residential water bill.

 

[p--and--t]

We have had swimming pool leaks at two different apartments both of which have proven to be difficult to repair. The capital fund could not fully cover one of them so we paid an extra levy of about $7,000 because there are only 12 units for the whole 12 floors.
The idiot tenant on level 11 has locked herself out and has activated the fire alarm all within 2 months of arriving. The locksmith got her back in to her unit thru the fire rated emergency exit door. That door may need to be replaced.
I think the fire call out is about $1500 a time so I think she may modify her cooking methods.

Same thing happening to my investment apartment in Brisbane, communal swimming pool going through refurbishment after 20 years discovered concrete cancer, the additional costs over and above initial refurb bill to be shared >$300,000

Building without pools and gyms are the best to minimise costs.

Cleaning/rubbish biggest bill single in the building where I actually live. Next is the elevator contract (no gym, no pool, no common room).

I think the fire call out is about $1500 a time so I think she may modify her cooking methods.

Our owners corp has now registered with LTO additional rules, if not real fire, all associated expenses the personal responsibility of the individual owner. The OC will not pay for brigade callouts. Locksmith charges are levied to the owner causing the need for change. i.e. lost keys requiring the entry and lobby doors to be re-keyed are billed to the owner who lost their keys.

 

[Dr Ralph]

Also - the strata fees a $1600pq which I think is expensive.

Not necessarily. Mine's $3000 a quarter. Depends on facilities/number of units etc.

i.e. lost keys requiring the entry and lobby doors to be re-keyed are billed to the owner who lost their keys.

That would likely lead to those people not informing the body corporate that they lost their keys!

 

[Happy Dude]

check out what hours of trade restrictions there are on the strata commercial lots. What is a benign use now could be a problematic noisy late night use in the future.

Definitely this, and the possibility of the vacant tenancy turning into yet another 24hr gym. Without adequate controls, which is inevitable, there's years of pain for residents.

 

[p--and--t]

Also - the strata fees a $1600pq which I think is expensive. Just waiting for details on last strata meetings and details on sinking funds etc

$1,600 is actually not that high. Read the financial reports to find out what it is spent on. Many people are paying way more than that (not me, our building has no fancy shared facilities)

Air conditioning. Is the apartment air-conditioned and if not can you install it if need be?

+1. Can be extremely difficult to get any changes at all through committees of smaller groups of units unless its just an internal paint job.

Changing carpet for new or to timber flooring can be a drama when the OC specifies the thickness of carpet, the type and grade of underlay, bans on walls being moved, bans on fans being attached to ceilings, constraints on plumbing, wet areas, rangehoods, and exhaust fans due to common services so best to be satisfied with what you are buying rather than what you think you can change it to.

 

[get me outta here]

A friend of mine bought a very expensive unit on the Kingston foreshore on Lake Burley Griffin over restaurants and cafes. The water bill etc was shared via the residents and as you probably know restaurants sometimes leave their taps just running. The restaurants use the lift down to the basement and would drop prawn shells and other things all over the place making a smelly mess around the hoppers.

 

[p--and--t]

Definitely this, and the possibility of the vacant tenancy turning into yet another 24hr gym. Without adequate controls, which is inevitable, there's years of pain for residents.

I had someone above me decide to run late night taekwondo lessons for friends. Bodies bouncing up and down on the floor at midnight and after.

Luckily the OC rules ban anything other than residential usage and noise after 11pm and the tenant was evicted.

 

[p--and--t]

That would likely lead to those people not informing the body corporate that they lost their keys!

Except, they can't access their apartment or the building if they lost their keys. The locks are all controlled and registered and stamped not to be duplicated and you can't get new keys unless you have authority from the OC.

 

[Dr Ralph]

Except, they can't access their apartment or the building if they lost their keys. The locks are all controlled and registered and stamped not to be duplicated and you can't get new keys unless you have authority from the OC.

They only have one set of keys?

ALL keys can be copied. Even if they state 'do not duplicate'.

 

[Happy Dude]

Changing carpet for new or to timber flooring can be a drama when the OC specifies the thickness of carpet, the type and grade of underlay, bans on walls being moved, bans on fans being attached to ceilings, constraints on plumbing, wet areas, rangehoods, and exhaust fans due to common services so best to be satisfied with what you are buying rather than what you think you can change it to.

I'd recommend @VPS review the bylaws in relation to modifications. Many of those things may result in non-compliance with BCA/NCC which is why OC have requirements. Its common for flooring changeovers to be very closely scrutinised. I've seen bylaws that effectively prevent replacing carpet with a hard flooring. Then again, the less enlightened OCs have nothing which means BCA/NCC becomes the minimum standard* and I would not wish that on anyone.

* Conversely, during design, the developer sees this as an absolute maximum.

 

[Hvr]

Surely access to common areas should be through swipe cards that are not able to be easily copied? This allows for them to be easily cancelled without affecting other residents.

When a key is lost which requires rekeying then there is the hassle of reissuing new keys to all residents.