Questions - self managed strata, but no sinking fund!!! More Qs -Any answers?

Hello,

am looking at buying a split level apartment in Canterbury. Initial offer accepted, but strata report and building inspection reveal lots of concerns. They are: strata is self managed but there is no regular meetings and the strata manager is owner of unit for sale and appears to be unlisenced, no sinking fund listed, general building account only has $800 (!!) in it, strata costs are approx $450 a quarter. Issues with fire regulation compliance (no smoke alarms, no fire door etc), compliance with OH&S, building insurance looks to be undervalued by about $1-2 million. Building report lists evidence of concrete cancer, roof works and general maintenance in the area of about $30K amongst all unit owners. Wouldnt be such an issue if there was a sinking fund and actual sinking fund fees already established. Owner refuses to drop the price further, but has offered to fix 'strata management issues'. No idea how likely it is that they can ensure other owners agree to establishment of sinking fund and lisenced strata manager - not sure if it can be made legally binding through contract. Any suggestions? or just get out while I can!
 
Are you able to contact other owners and/or the committee? Am unsure about this but just suggesting?

If possible, see if they have current issues and whether he has promised them to 'fix the strata management'.... If he has, it is possible they will never be fixed?

Are they building repairs to the hole building - and not just your unit?
 
building inspection only look at the surface, substructure is hidden under gyprock and trim, if the surface is bad, there is three times as much to repair underneath
looks like a duck, quacks like a duck, so duck off from this one
 
I think you should have a look around ... a lot of units are reasonably managed .... I'd give this one a pass

some of the problems sound structural which can cost a lot of $$$$$$$$$$
 
Good point made by Handy Andy..... If it is 50k below comparable sales or say 10% below MV then it may be worth looking at - if you are not bothered about the hassle that may be involved with in fixing uop the strata management issues and any building works??
 
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