Buying inner-Sydney apartment questions

[Amadio]

I have some questions about inner Sydney apartments as PPOR.

Recent articles suggest that there is a huge quantity coming onto the market and this is taking pressure off buyers. To those in the thick of the market, are you finding that this is true? There certainly seem to be more suitable apts than time to see them all, but this is our first time looking.

And some questions about body corporate issues...

How does a buyer get a hold of the meeting minutes from past body corporate meetings? Is the REA obliged to find these or is it up to the buyer to locate?

Is the actual amount which is held in a sinking fund (is that the correct term?) available to a potential buyer?

How do you write an offer which gives enough time to look into body corporate issues?

Any info much appreciated - thanks.

 

[travelbug]

Hi,
have you seen huge developments being built?

You can get a body corp search done (couple of hundred dollars). Your solicitor can arrange it. Or you can get permission from the owner to do your own search. You go to the BC office and look at paperwork. But if you have never dont it before it can be confusing. Cost about $30. The REA is under no obligation to provide info about BC. I'd at least want the strata costs though. But I wouldn't take the REA word for that.

The money in the sinking fund is for costs that may arise with the building. You can't "get" it. But having a healthy sinking fund means the likelyhood of a special levy to pay for upcoming costs will lessen.

In the contract you write subject to "satisfactory" body corp search. A bit wishy washy. Maybe someone has a better way to word it.

 

[Amadio]

Thanks for that.

 

[Rolf Latham]

depends on what inner Sydney is

to some, east of Parramatta is inner ring

ta
rolf

 

[Amadio]

Sydney cbd, Darlinghurst, Surrey Hills, Pyrmont, Potts Point... easy walking distance to cbd.

 

[Propertunity]

And some questions about body corporate issues... How does a buyer get a hold of the meeting minutes from past body corporate meetings?

A buyer, or his conveyancer, or buyers agent, can order a strata report from a multitude of companies offering this service.

Is the REA obliged to find these

No....and most don't want to know about it. Sometimes a vendor will have these available if they are an active BC member themselves.

...or is it up to the buyer to locate?

Yes

Is the actual amount which is held in a sinking fund (is that the correct term?) available to a potential buyer?

The amount of cash in the sinking fund (used for capital works) and in the admin fund (for day to day expenses, such as insurance, garden mtce. etc) is what you should be very interested in. You, as a unit holder contribute to these funds but you don't get to touch them.

i.e. I had a client recently interested in buying into a unit complex in Camperdown. 60 units in the block. $200K cash in the sining fund. Woo Hoo! until you read the strata report further, to discover, in this case, that the BC had a quote of $800K to fix waterproofing issues in the basement carpark. All of a sudden the $200K cash jackpot turned into a $600K shortfall and the very real likelihood that a special levy of $10K per unit was about to be struck!

How do you write an offer which gives enough time to look into body corporate issues?

You don't wite offers in the current market in NSW. You sign a contract of sale, once you've agreed the T&Cs and enter into a 5 business day cooling off period (sometimes extended to 10 days if you can negotiate it), and pay a 0.25% deposit. This gives you time to do all your checks and either proceed or rescind.

 

[sanj]

depends on what inner Sydney is

to some, east of Parramatta is inner ring

ta
rolf

That is insane. Who claims that??