Investing in a strata property is a big move, and it is one that you should do with both eyes open. Before you agree to purchase a strata property which you then rent out to others, you will want to make sure that you know everything you can about the place. The best way of finding out about a property is by ordering different inspections and reports. One useful source of information which you may be interested in is the pre-purchase strata report. Below is a guide to 3 ways in which commissioning a strata report can benefit you.
Providing a financial forecast
The strata report will provide a general financial outlook for the property. This outlook will be written using information such as the number of apartments which are currently occupied, the average rent, the projected future costs and wider market conditions. The financial outlook will give you a good overview of how the property may perform if you decide to purchase it.
Checking for planned construction work
The report will also contain details of any construction work which is planned to take place in or around the property. As the new owner, you will be liable to meet the cost of any construction work which takes place while you are the landlord. Knowing if any major renovations are planned can help you to assess if investing in the building would be a good deal. On the other hand, the planned construction work may significantly increase the value of the property, and so it could be worthwhile taking a short-term hit for a longer-term gain.
Establishing the current outgoings
Part of the strata report will be dedicated to the expenses generated by the property in recent years. For example, this section should contain a break down of the cost of any maintenance and repair work, local taxes, staff and security and utility bills. Seeing this breakdown will allow you to assess if you will be able to meet these costs going forward if you purchase the property. Details of the amount of money spent on repairs can also give you a useful insight into the condition of the building.
If you would like to find out more about the many benefits that a strata report offer you during the pre-purchase phase, you should contact a local company which specialises in property appraisals. A member of staff will be happy to supply you will further information and advice.Share