Reassurance

Hey everyone,

I'm looking for my 2nd IP and have found 1 I am quite interested in. I was looing around for a crappy house on a large parcel of land but a 2 bed apartment from a deceased estate has caught my eye.

The apartment is in a complex of about 30 with nice views. It would be cashflow nuetral at worst, at a very reasonable price and I can see some good short - medium term capital gains with an easy cosmetic reno and also the price of the suburb going up.

The problem is that it is a smallish bit of land, large complex and has an elevator. 3 things which usually dissmisses a property from my thinking right away. I'm not to sure what the strata fees are yet.

I'm not to sure if I should continue to pursue it
 
Do those other comparable blocks have elevators? That always worries me. Elevators need replacing eventually and it's expensive.
 
They do

I know, it does worry me.

Everything besides complex size, block size and elevator ticks the boxes
Location is excellent, yield is around 6.5 - 7% without a reno, good growth outlook and low vacancy.
 
I'm not to sure what the strata fees are yet.
I'm not to sure if I should continue to pursue it

Well that's the problem, you really don't have enough information to make a quality decision.

Not only do you need to know the strata fees but you also need to know:
1. The balance of the sinking fund
2. The balance of the admin fund
3. Whether or not they have any strata levies planned etc.

For example they may have $100K sitting in the sinking fund which would be lovely to have a vote on as a member of the BC, to spend on an external reno. Or they may have a quote for a new roof that needs repair shortly for $50K and have $2K in the sinking fund to do it. So a strata search is in order, IMO.
 
Well that's the problem, you really don't have enough information to make a quality decision.

Not only do you need to know the strata fees but you also need to know:
1. The balance of the sinking fund
2. The balance of the admin fund
3. Whether or not they have any strata levies planned etc.

For example they may have $100K sitting in the sinking fund which would be lovely to have a vote on as a member of the BC, to spend on an external reno. Or they may have a quote for a new roof that needs repair shortly for $50K and have $2K in the sinking fund to do it. So a strata search is in order, IMO.

Thanks Prop

How does 1 do a strata search?
 
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