I am looking at purchasing an apartment at the bottom of a cliff face. The cliff was damaged by stormwater and some years ago a lot of money (I think hundreds of thousands) was spent rectifying it and in a legal dispute with the neighbours on top of the cliff. I am seriously concerned that there is a strong likelihood of a major issue with the cliff which will cost each unit owner 10-20k in the next xxx years. On the other hand, the strata committee of these apartments are very dedicated, smart, and competent. They seem to get things done and judging from the minutes, are confident that the current ongoing issues with the cliff are resolved. Most of them have also lived in the block for a fairly long time. There is also a plan in place to undertake regular maintenance of the cliff which does not seem very expensive.
The sinking fund is not enough to cover a 100-200k catastrophe happening. I wonder, if you were in my situation, whether you would:
1) not buy the property.
2) buy it, but budget a significant amount of money (say 20k) to go into a special levy in the future.
3) have confidence in the current strata committee, and budget a minimal amount of money for a special levy.
Thanks very much, in advance, for your words of wisdom.
The sinking fund is not enough to cover a 100-200k catastrophe happening. I wonder, if you were in my situation, whether you would:
1) not buy the property.
2) buy it, but budget a significant amount of money (say 20k) to go into a special levy in the future.
3) have confidence in the current strata committee, and budget a minimal amount of money for a special levy.
Thanks very much, in advance, for your words of wisdom.
