The Australian government keeps track of property ownership through property titles like strata but you might ask: “What is strata?”
If you have ever purchased an apartment or townhouse, then you are the strata title holder as it makes you the legal owner of the apartment. This means that while you own the individual ownership of your apartment/lot, you get to share ownership of other common areas within the apartment complex. These areas include elevators, gardens and hallways.
In this blog, we will discuss in depth what is strata and what you need to know about strata.
What is Strata?
Strata, also known as “strata title,” is a type of property ownership and Australian innovation in property law governed by an owners’ corporation (also known as a body corporate in some states). In this type of property ownership, you can have individual ownership of certain parts of a property and have shared ownership of others.
It is also defined as a legal document of ownership for a strata lot. The totality of multiple strata lots is called a strata scheme.
According to Hazel Easthope, professor at the University of New South Wales and a researcher who specialises in Urban/Social Planning and Policy, the strata scheme is a multi-unit property with multiple owners who are jointly in charge of the management and maintenance of their buildings. After the owners have purchased an apartment, the owners usually join an owners’ corporation.
Strata schemes can include buildings or complexes designed for commercial purposes, residential living, or a mix of both. It also has a fundamental and interconnected relationship with strata management.
What Is Strata Management, A Strata Plan And Strata Report?
This section aims to answer the questions, “What is strata management?”, “What is a strata plan?” and “What is a report?” respectively.
Strata management is the operational arm of the building and refers to the services that assist the owners’ corporation in meeting their responsibilities.
The owners’ corporation manages the scheme and its other aspects from maintenance, finances, insurance and by laws. The strata manager supports and guides them.
Ideally, a strata manager should be knowledgeable and competent in strata legislation, property management and administration.
Their duties comprise the following:
- Financial management: The maintenance and repairs of common properties
- Insurance: Securing sufficient insurance coverage for the building and common areas.
- Administration: Arranging meetings, tracking records and managing correspondence
- Compliance: Ensuring compliance with by-laws and regulations related to strata
- Dispute resolution: Aiding in conflict resolution between owners or with third parties.
There’s more to what is strata; the management and governance of strata properties depend on your location. Each jurisdiction enacts legislation governing strata ownership. New South Wales, Queensland, Victoria and other states have their own bodies for the regulation and compliance of strata schemes with relevant laws.
What Is Strata: The Rest That You Need To Know
Familiarise yourself with what is strata and what is considered your lot. A lot of space and elements like your doorway and walls are considered shared spaces within a strata situation so you need to note especially if you plan to renovate.
The cost of obtaining your property is crucial to remember. On top of mortgage repayments, your strata fees will be an additional cost.
Managing diverse strata properties can be challenging, especially in upholding a serene environment and encouraging efficient property management. These are:
- Maintenance issues
- Compliance with evolving regulations
- Conflicting interests among owners
- Building defects
Your Next Steps: Contacting Professional Lending Services
We hope that this blog answers your question: “What is strata?” If you are interested in obtaining a strata investment then you may need someone knowledgeable to help advise you and a mortgage as well.
We are a trusted mortgage brokerage firm with an experienced team based on the Gold Coast, offering personalised home loan solutions tailored to each client’s unique needs and working closely with a variety of lenders to find the most competitive rates and terms that fit your current needs. Get in touch with us today!
Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.