huge block of units

hello, another question! I promise when I have a few properties under my belt I will help others where I can :)
We've located a unit that is in a huge block of 80 units. Anything to watch out for with such a large block?
Also, how do we get our hands on strata info, sinking fund,fees, minutes of meetings etc? The estate agent said he was not privy to that info.
Thanks
 
Can't help I'm sorry.........just reading the title you had me salivating there for a moment :p thinking it was about a (whole) huge block of units.....I must stop assuming and judging a book before delving inside :cool:
 
From an IP point of view, 80 in a block is quite a lot, for the Adelaide market.
Rent return and CG are all about desireability and scarcity. You're not going to get those to factors at work in a block that large.
When yours is advertised for rent, quite likely so will one or more others.
Same if you try to sell.
Of course, if it's a block of 80 on the beachfront and they all have ocean views, are mainly owner occupied etc, then it might be a good deal at the right price. Because you will have desireability and scarcity working together to give you a decent rent return and CG over time.
The agent needs to provide the BC minutes and accounts at some point in the process.
In the meantime, you might be able to get them to give you the details of the BC manager so you can request the info from them.
 
Keep away from it!!!!!!!

I wouldn't even look at it, but it could be my personal preference.

You will be effected by tenants, conditions, sales etc. of all the 79 other units.
You dont want that burden on you.
I would never buy a unit in bigger than block of 12 (or even less).
 
The agent needs to provide the BC minutes and accounts at some point in the process.
In the meantime, you might be able to get them to give you the details of the BC manager so you can request the info from them.

In NSW the strata investigation is part of your own DD. You would need to be fairly confident about the purchase before engaging a strata searches who will provide a full report.

Another alternative is to go to the block and find some OO and get the low down on the block.

Cheers
 
In NSW the strata investigation is part of your own DD. You would need to be fairly confident about the purchase before engaging a strata searches who will provide a full report.

Another alternative is to go to the block and find some OO and get the low down on the block.

Cheers

Thanks. Didn't know that. Different here in SA, although the searches aren't usually complete at the time the property is put on the market. However, if you sign a contract, the cooling off clock doesn't start ticking until they are all in hand, including the strata minutes etc.
The door knock sounds like a good plan for two reasons. Firstly, it might provide access to the meeting minutes etc and secondly, if it's difficult to find an OO (ie. very high percentage of renters) then that would tell me something, too and I'd be more likely to walk from the deal.
 
I think I know the group you might be looking at... (City Beach on anzac maybe??)

Plenty of units in this group are furnished and rented to international students. When you walk past the group (not that far from where I live) it smells like a Chinese restaurant. Now this is not necessarily a bad thing, but it limits the type of tenants that would be interested in renting there. Yields can be higher in the furnished case, but I have noticed these have also fallen in recent years with capital growth.

I had a unit in a group of 24 until recently, and found the strata fees to be a lot less than smaller groups that I have units in. I guess this is due to many costs being almost fixed, such as garden upkeep etc but with more units to split the cost. The exception to this can be if the group has expensive items such as lifts and pools.
 
We owned an IP unit in a block of 80, and it turned out to be a very successful investment.

My advice would be to ensure that you only purchase one of the more desirable units in the complex, i.e., one with optimum outlook, privacy etc. Our unit performed well because, of the 80, it was probably in the best 12 or so and most of our tenants came from within the complex. The manager kept a waiting list of good tenants who wanted to move from the units with street noise, no outlook etc to the prime units in the complex.
Marg
 
I have noticed that in the 10 days I have been looking, approx 8 units are for sale - so around 10 percent of all the units. Would this ring alarm bells for you?

The unit block is in Elizabeth Vale SA and is very close to a hospital and surrounded by retirement homes and aged care units - although it is a nice spot.
 
I have noticed that in the 10 days I have been looking, approx 8 units are for sale - so around 10 percent of all the units. Would this ring alarm bells for you?

Yep.
Have you looked to see how many are advertised for rent, too?
Do you think it might be time to move on to the next opportunity? Others are comeing and going while you're focussing on something you're not feeling quite right about, anyway (or you wouldn't be posting the question here).
 
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