A Conveyancer's Guide To Buying An Apartment

28 December 2019

Do you intend to purchase an apartment? Owning your own home is a dream come true. Read the extract below to learn the various considerations to make when buying a flat in Australia.

Finding a Suitable Apartment

The apartment must be appealing to your eye. Some items on your checklist should include:

• Is the apartment conveniently located? Check access roads and the proximity to amenities such as banks, shopping malls and hospitals.
• Does the apartment have sufficient parking space?
• Extra facilities. Some flats have recreational areas such as swimming pools, gyms and parks.
• Do the walkways, staircases and elevators have adequate space?
• Interior. What is the quality of fixtures and appliances in the house? Examine the use of space, light and the energy efficiency of the home.

Financing

Most people purchase homes through bank finance. Visit your bank and check if you qualify for a mortgage. Remember, the higher the deposit, the less the monthly repayments. Therefore, make some savings to ensure you have an easy time repaying the loan. Do not forget to negotiate interest rates and repayment terms. With inadequate funds, you could opt to buy off the plan. 

Work with a Skilled Conveyancer

Hire a conveyancer to handle the legal aspects of the purchase. He or she will conduct some background research to ensure the property is not under dispute and that all bills are paid. The person conveyancing will also organise a house inspection to examine the condition of the house. For instance, cracked walls or pillars are a sign that the building may collapse. Termites, on the other hand, may destroy internal fixtures. 

Your conveyancer will also advise if you are getting value for your money. If the property is overpriced, he or she may suggest suitable alternatives. He or she will negotiate the asking price and ensure the contract of sale has reasonable terms and conditions.  

Strata Fees

Most apartments in Australia have a strata title. Once you purchase the apartment, you automatically become a member of the owners corporation. The corporation manages shared amenities on the property. Members must pay a service fee to ensure the property is in good condition. Additionally, they may set rules such as whether members should keep pets and how many parking slots each member is allocated. You may also have to contribute towards renovations such as installing an asphalt driveway. Your conveyancer will give a brief on the owners corporation bylaws and payments.  

When purchasing an apartment, determine its appeal, consider your financing options, work with a skilled conveyancer and check the owners corporation bylaws.