News & Advice.
Buying an Apartment Due Diligence Checklist.
Apartments are a popular option for buyers, offering accessibility, affordability, lifestyle, and convenience benefits. There are, however, a range of unique factors apartment buyers need to consider that don’t apply to house buyers.
In this article, we outline three key due diligence items buyers need to check off before making an apartment purchase.
Read the reports
The best information available to any buyer is the strata report, which covers the finance of the build, the cost of current levies, pending works, and the developer’s history.
AGM minutes are also helpful as they typically contain financial details of the administrative and sinking funds and any historic problems and challenges such as plumbing, drainage, fencing, and driveways.
Once you have reviewed the strata inspection report and AGM minutes, it is worthwhile seeking legal advice to understand the body corporate bylaws and any restrictions that could affect your plans for the apartment, e.g. renovations, pets, commercial or retail letting, etc.
Research the development
Research the developer and builder to understand their history, workmanship and future projects. What other jobs have they done? Have they changed names? Have they ever gone into liquidation?
New apartments may not show signs of structural issues. Learn as much as you can about the developer and builder and their reputation to make sure they are credible and trustworthy.
Look at the building
Inspect the entire building and its facilities, including communal areas like the car park, recreational facilities, lifts, etc.
Pay particular attention to the building’s exterior condition—this should give you an insight into body corporate proactivity. Also check the ratio of owners to renters living in the building, as buildings with higher levels of owner-occupancy tend to be better maintained.
Learn more about the process of buying an apartment
As with any major investment, when looking to buy an apartment it pays to undertake plenty of due diligence, seeking professional advice where appropriate.
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