Property investment is a bittersweet mixture of success and mistakes. As an Investor, you will have misadventures and mishaps.
Persisting with a strategy therefore to create wealth through property investment over the long term takes courage and the ability to pick yourself up when you trip and fall and have to start again.
What drives us is our desire to be successful investors. Keep up your desire and your education about what is happening in the market place and you will move forward in the real estate world. Let me do my bit in continuing your education.
As I have said before, education is your bridge and your safe crossing into the real world of property.
Failure to Operate Body Corporate
There are countless duplexes and triplexes across the country where after registration of the Body Corporate or Strata Scheme the owners let the operation of the Body Corporate lapse. [sam id=32 codes=’true’]
They simply agree amongst themselves about who is responsible for maintaining and mowing the lawns and which insurance company they will jointly appoint to insure the building.
This makes sense from a practical point of view, although the dilemma for you is that once the Body Corporate has been established (which must occur in order to allow separate Title Deeds to issue for the units) then owners of those units and future owners have a legal obligation to maintain the operation of that Body Corporate.
How can you be sure then, as the Purchaser of a duplex or a triplex, that things are as simple as what they appear.
If you purchased a unit in a Strata Title Scheme where the Body Corporate is operational you can protect yourself by making the Contract subject to a search of the Body Corporate records and you being satisfied with the results of this search.
The results of this search will reveal one way or the other whether everything was “good on the home front” or not. If the Body Corporate however has been inactive for many years carrying out such a search will be pointless.
You can still of course search the Titles Office records to confirm what By-Laws apply to the Body Corporate and the location of any common property and any exclusive use areas, but that will reveal nothing about the operation of the Body Corporate.
The way to “bridge the gap” in these circumstances is to physically meet with your neighbours in the complex to satisfy yourself that there is nothing untoward going on This is a must. It is the only real way to obtain the peace of mind you need to be satisfied that the fact the Body Corporate has never conducted Annual General Meetings or struck any levies doesn’t come back to haunt you down the track.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.