A few facts for first-timers

With apartments still being the first choice for most first-time home buyers, here are a few tips that will help you avoid some of the potholes in the road to property ownership.
First up, levies. They are a payment on top of your mortgage and council rates for your share of the services in your building. If you haven’t budgeted for them, you could be in strife.
Secondly, you are now living as part of a community with its own rules and standards of behaviour so read the by-laws before you buy. Pets, parking and noise are the most common sources of conflict and your neighbours will expect you to adapt to their standards – not vice versa.
Buying off the plan gives you a chance to save a bit more while the block is being built and you get the “new car smell” excitement when you move in. But don’t believe promises of low levies when the developer is also offering resort style facilities.
Developers don’t set levies, you and your neighbours do when you find out how much it costs to run your building. If you’re on a tight budget, avoid blocks with too few apartments sharing too many high-cost services.
In new-ish buildings, make sure any defects have at least been identified. If not and the seven-year limit on claims is approaching, you could be buying into a world of future pain.
Also get your lawyer to check the executive committee minutes for any signs of unresolved problems between neighbours. If you are party people and there’s a war raging about noise, look elsewhere.
In older units, no money in the sinking fund – the money set aside for building repairs or refurbishment – could mean that previous owners have skimped on this and left paying for the inevitable deterioration of the building to the next guy – ie, you.
Finally, talk to the people who live there, check out the cars in the car park to see if you’ll be living with your “tribe” and have a look at the notice board. If it’s locked up and inaccessible, chances are the people running the building are too. If it’s lively and informative, you could be moving into a whole new and welcoming social scene.

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