What kind of property do I want?
The property you buy should be based on your budget and your required lifestyle with your current and future needs in mind. There are a number of different types of properties including apartments, town houses, semi-detached and free-standing houses.
You may have a demanding job or spend a lot of time travelling interstate or away from home participating in sport and social activities, then a low maintenance property, i.e. apartment or townhouse may be suitable for you.
You may have a large family, pets or are a keen gardener, a larger house with a good-sized yard may be the right property for you.
There are advantages and disadvantages with each type of property, for example, houses may require more maintenance (with you covering 100 percent of the cost), but may provide more privacy than an apartment or townhouse. Apartments may offer you a great lifestyle at an affordable price, where common area maintenance costs are shared between the owners of the apartments in the complex. However, you must abide by the rules of a body corporate and consider issues such as noise and how to deal with your close neighbours.
Buying a house or investment property ‘off the plan’
Buying a property, house or investment property ‘off the plan’ means that you purchase a property (usually an apartment or townhouse) prior to completion of construction. You are required to put down a deposit and then have to wait until the property is finished. When buying off the plan make sure you have your solicitor or conveyancer thoroughly check all aspects of the contract.
Legal forms of ownership
There are many legal forms of ownership for residential properties, including:
Note that these forms of ownership vary by state, so ask your solicitor or conveyancer for further information about them.
Living in an apartment or townhouse
Planning on buying an apartment or townhouse you may need to understand how a body corporate works. If you buy one of these types of properties you automatically become a member of the body corporate.
A body corporate oversees the collective responsibility and decision making in relation to use and maintenance of the common property in your building. Owners are required to make financial contributions to the body corporate. Owners must pay fees and levies for administrative expenses including maintenance, upkeep and repair of buildings that form any part of the common property. Owners may also be required to contribute to a reserve or sinking fund to cover anticipated costs of repairs to the building or replacement of essential items or services such as air conditioners, security systems or lifts.
Body corporates have rules and restrictions that apply to residents. There may be restrictions on keeping pets, car parking restrictions or use of public spaces. You should consider how these regulations may impact on your lifestyle.
Other issues to consider when buying apartments are:
- Noise (i.e. Is there traffic noise? Is there sound insulation between apartments? Are there rules in the body corporate about floor coverings? Are there any polished floorboards?
- Layout of apartment (i.e. Where are the common walls?)
- Security (i.e. Are there security doors or intercoms? Are there signs of vandalism or break-ins?)
- Social dynamics (i.e. How many apartments are in the complex? How many apartments are owner-occupied or rented? How long have owners or tenants lived there? Generally, if residents have lived there for a long time, it indicates they are happy with their surroundings)
- Parking (i.e. What type of parking do you have? Are there rules about visitors parking on common areas?)
