From first home buyers to those looking to downsize, purchasing an apartment which will be managed by an owners corporation, or a home that is tied to a body corporate, can offer an endless number of benefits and provide a far more affordable alternative to traditional home ownership.
It’s important to understand exactly what’s involved in owning an apartment before you begin making any commitments. To help work out whether this kind of arrangement is the right choice for you, we’ve put together a short list of everything you need to know about owners corporations.
Owners corporations facilitate the ownership of part of a shared property
Essentially, owners corporations exist to allow individuals the opportunity to purchase part of a shared property, while also outlining each owner’s legal rights and responsibilities. In most cases, each individual will be granted sole ownership of their ‘lot’, which may be an apartment, unit or townhouse, as well as shared ownership of ‘common property’, such as driveways, facilities and foyers.
Owners corporations oversee the management of common areas
In order to ensure the shared areas are well maintained, owners corporations are given the authority to arrange any required maintenance and repairs. Alongside the owners corporation committee (a group which is formed by active owners wanting to contribute to the way the building is run) the owners corporation is responsible for key decisions regarding the property and for enforcing any specified rules or regulations.
You may be required to seek permission before you make any changes
Another important factor to be aware of is that you may be required to seek approval from the owners corporation before making any substantial changes to your home. If you intend to complete any major renovations or home improvements, you’ll need to get the owners corporation to sign off on it first!
Levies can vary depending on the features of each individual property
Each quarter, most apartment owners will be charged a levy to cover the day to day costs as well as any projected long-term expenses, however this can vary due to a number of factors unique to your property. General expenses may include things such as maintenance, council rates, and insurance, but any additional features may incur further fees.
As Melbourne’s vertical living experts, Lucas have an excellent array of apartments available for sale. For personalised assistance with all of your apartment living needs, contact our award-winning team on 9091 1400.