Tag Archives: strata management

Selling a strata or community property

Sydney from above
Sydney the Place to Be

Selling?  10 Tips you’ve never heard of to improve your Sale!

At one point or another, most owners of a Strata or Community Title Property will consider selling their home or investment. Your sales agent will generally run you through the DO’s and DON’Ts of preparing the property for the market, however there are many other small, but significant steps you can take through the effective use of your scheme’s records that can be extremely beneficial in achieving a quick and efficient sale, as well as achieving the best possible price for your property, particularly in a tough and competitive market.

1.    Contract Information

You can obtain much of the pertinent information that your solicitor or conveyancer will need to prepare your sales contract by utilizing the WEBlink services at our website www.netstrata.com.au. Here you will be able to obtain;

  • A copy of the Insurance Certificate for your scheme
  • A copy of the Insurance Valuation for your scheme
  • A copy of the Strata/Community Plan for your scheme
  • A copy of the current By-laws for your scheme

These documents will provide useful and important information your solicitor can include in your contract that will assist the inquiries of prospective purchasers.  They should also save you a few $$$ in the costs of preparing your sales contract!

2.    Size Matters!

Your Strata or Community Plan will provide the accurate sizes of your lot. And for strata owners this will include the internal areas, balconies, courtyards, and garage/parking areas for inclusion in sales brochures to prospective purchases.

3.    Features

Be sure to share all the useful features of your scheme to your sales agent, particularly items that will boost the saleability of your lot. Useful ‘strata’ and ‘community’ questions to answer include;

  • Is the scheme Pay TV/Digital TV ready?
  • Is high speed broadband internet available?
  • Is there a Gym, Pool, Spa, Sauna at the scheme?
  • What are the common security features?
  • What are the local conveniences, e.g. bus/rail stops, shops, schools, child minding facilities, etc

4.    The By-laws

The By-laws that are in place for a scheme can have a significant impact on the lifestyle choices for residents and a purchaser’s willingness to buy.  Important questions to inform your sales agent include;

  • Are pets allowed at the scheme? And if so what type?
  • Can air-conditioning units be installed?
  • Are there exclusive use By-laws in place for your lot?
  • What is the scheme’s attitude to alterations, additions and improvements?

5.    Maintenance Costs

All prudent purchases will want to know not only the current the running costs of the property, such as your current levies, council rates and water rates, however what the expected future running costs of the property will be. If your scheme has undertaken improvements to the common property such as a major renovation or implementing an energy audit, installation of solar panels or rainwater tanks, be sure to inform your agent of the proposed benefits to the scheme.

6.    The Schemes Records

The information you provide during the marketing process will attract purchasers to your property, however those that are serious will want to undertake a complete inspection of the records of the scheme.  These reports are usually prepared by professional searchers who know where to look for the detailed information relating to your lot, so unfortunately there’s no place to hide.

These searches can often make or break a sale, particularly if your scheme has had a history of defects or disputes. If your scheme has a few skeletons in the closet, don’t worry. By forewarning your sales agent or solicitor of any potential problems you can provide them with the significant information that is necessary to address any concerns.

7.    RP Data Reports

Setting the correct price is imperative during the marketing process.  Too high and you’ll scare off many prospects, too low could cost you thousands. The RP Data reports provided via WEBlink will provide the recent sales results for strata and community title properties in your area and often your scheme.  These are the best indicators of the current state of the market and provide you with further independent advice of the appropriate price to list your property for sale or auction.

8.    Sales / Auction Signs

No doubt your sales agent will want to erect a sign on the common property advertising your lot for sale. Here it’s important to ascertain your scheme’s attitude towards the erection of signs on common property because permission will be required. If your agent unwittingly erects a sign without permission, you may be up for the costs of not only installing the sign, but having it removed and repairing the damage to common property.

9.    Knowledge is Power!

NSW Fair Trading produces a range of useful and informative guides to assist prospective purchases. These include; ‘Buying into a Strata or Community Scheme’ and ‘Strata and Community Title Living’. These guides are offered free from Fair Trading, so have your sales agent obtain a few copies for distribution to prospective purchasers. See our useful links page.

10.  The Netstrata Difference

Whilst we are experts in Strata Management in Sydney, we’ll never pretend to be sales agents, however if you ever need any assistance with obtaining the important information to assist you during your sales and marketing process or if you have any questions, please do not hesitate to contact our office.

Ronald McDonald House Charities

Netstrata is proud to be involved with the Ronald McDonald House Charities with our strata managers and support team making a monthly donation to this fantastic cause. Netstrata received a thank you letter today from Malcolm Coutts CEO of Ronald McDonald House Charities Australia along with the Annual Report for the last financial year. Netstrata’s contribution assisted in providing accommodation for over 6000 families last year whilst their seriously ill children were receiving treatment in hospital.

Netstrata is proud to be part of the RMHC Family, for anybody wishing to find out more about the charity please visit their website at www.rmhc.org.au.

Continual professional development

The strata management team at Netstrata undertook an extensive training program last Friday in their Sydney Offices where they were joined by the Institute of Strata Title Managements Richard Holloway.

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As strata management is a dynamic sector continually being effected by legislative changes and different rulings it is paramount to stay up to date with the changes and how it effects our client schemes. During the course we looked at Court Cases making a difference to the sector, debt recovery, building defects and works to owners lots. The floor was also opened to some general question and answers which enabled some positive discussions. All in all a fantastic course and very beneficial.

Franklin Covey

Some of our staff attended the Franklin Covey Course on Great Leaders, Great Teams and Great Results in Melbourne last week. The course was founded by international best seller Stephen Covey author of 7 Habits of Highly Effective People. The course was centred around “The Whole Person Paradigm recognising that human beings are not things that must be motivated and controlled. Instead, people are four-dimensional – body, heart, mind and spirit. When people are treated as whole people, they volunteer their highest efforts and energies.

The course was thoroughly enjoyed by our staff, turning upside down some popular management thought and they look forward to sharing their new knowledge with the Netstrata team to further assist our vision of strata management excellence.

What do Strata Levies pay for?

What Do Strata Levies Pay For?

Strata Levies contribute to the operating expenses of strata properties and are divided into 2 separate funds being:

Administration Fund – intended for current operating costs; such as:

Insurances
General Maintenance of shared or what’s known as common property
Mowing and gardening of common property
Cleaning of common property
Water consumption
Electricity Costs

In a perfect world the administration fund would have a $0 balance as you only budget for what you spend.

Sinking Fund – intended for the long-term maintenance of the buildings and improvements to the property, such as:

Replacing common area carpets
Repainting of common areas
Replacement of guttering
Replacement of garage door

How and when are levies determined?

Levy contributions are reviewed yearly by the owners at their annual general meeting, the amount of levies you pay is determined by the owners at the meeting based on the budget sent out with the meeting notice, it is important to look at the meeting notice carefully so you are fully aware what your levies are likely to be.

Shore Dolls Point

Netstrata are pleased to announce that they have been selected to undertake the strata setup work for the  prestige Shore Development located close to Botany Bay in Dolls Point. Shore Dolls Point is being developed by Prestige Apartments Australia and brings a new level of living to the St George District the project website can be viewed at www.shoredollspoint.com.au.

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Home values flat in April 2010

Home values flat in April as heat comes out of Australia’s housing market
Housing markets outside the capital cities record no growth in 2010

Based on the industry-respected RP Data-Rismark Hedonic Home Value Index, which uses the nation’s largest sales database combined with the most sophisticated index technology, Australia’s capital city housing markets recorded virtually no capital gains in the month of April, with home values up just 0.2 per cent (0.3 per cent seasonally adjusted).

The slowdown in capital growth comes on the back of 16 months of strong rises in home values. The anemic growth in April also contrasts strikingly with the market’s circa one per cent per month capital gains since the start of 2009.

Across Australian capital cities, home values were 11.9 per cent higher in the 12 months to April 2010.

2010 ISTM Sailing Challenge

The Institute of Strata Title Management (ISTM), is the leading professional body for the strata and community title sector in NSW, and recently held their annual sailing challenge. Wendy Wong from Netstrata attended the challenge and said it “was a great day and good opportunity to speak with other strata managers about the benefits of strata living and the challenges facing the sector”.

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Wendy Wong at the Helm lookout!

ISTM represents over 1,300 strata managers, principals and suppliers in the sector. The members’ experience ranges from large corporates to small family businesses. They have expertise in all facets of strata management and service provision. Their experience spans those with a lifetime in the industry, to those who are just beginning their careers.

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Wendy and some other Crew.

Membership of the Institute is open to Strata Managers and Suppliers to the sector. A subscription service is also available to those owning a strata or community lot and members of the Owners Corporation Strata Committee. ISTM is a affiliate member of NCTI, the national body for Strata and Community Title Managers.

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A great Day for All

Netstrata secure their future in Carlton

The management of Netstrata are pleased to announce that they have secured their future  in Carlton with the acquisition of 294 – 298 Railway Parade. The building currently comprises Netstrata’s head office, home to 35 of their team. Other tenants in the building include Lifestyle Fitness Australia and Sarraf Real Estate.

New building

Managing Director Stephen Brell said “having to relocate over 5 years ago from Hurstville to Carlton because our existing premises were being demolished; it is fantastic to now secure our future in the same location. We can now focus wholly on our business strategy of providing the best strata and community title management services, without having to worry about relocating. Over time to we plan to further improve our facilities  to ensure that our clients strata experiences are further enhanced.”

Strata hold-outs forced to sell under new plan

INDIVIDUAL apartment owners could be forced to sell their units to a developer if three-quarters of the other owners in their building want to do so, under a proposal from the Australian Property Council. The council, which represents developers and large property owners, says strata title laws give too much power to individual owners, who can block the redevelopment even if every other title holder in the building wants to bring in the bulldozers.

The council says many of the state’s 65,000 strata buildings are dilapidated and need redevelopment to cope with population growth. However, it says the process is being held back by a handful of owners. It has released a policy paper recommending that strata title laws be changed so that if 75 per cent of owners in a strata title building vote to demolish and rebuild, they can override any opposition.

The proposal has drawn support from strata managers and the Owners Corporation Network. The Planning Minister, Tony Kelly, said he would give it careful consideration. ”The minister will be meeting with the Property Council of Australia next week and will discuss the details of their proposal,” a spokesman for Mr Kelly said. The Government promised in its 2005 Metropolitan Strategy to investigate reforming strata laws to encourage housing redevelopment. But it has made no changes, fearing that it will be accused of removing owners’ rights. The Property Council accused the Government of dragging its feet on the issue. ”A quarter of everyone in NSW owns, lives or works in a strata title building,” the acting executive director of the council’s NSW arm, Glenn Byres, said. ”But no serious review has taken place, no policy agenda has been promoted and no legislated solution is in place.”

A strata lawyer, Stephen Goddard, said he had acted for the owners of a unit block in Cronulla who had been prevented from developing their dilapidated building because an elderly owner refused to sell. ”The building is 50 years old, well past its best and definitely not the best use of the property,” Mr Goddard said. ”But because just one of the 16 owners – an 80-year-old woman who is refusing to leave because she has convinced herself that she’ll die if she does – is refusing to sell, everyone is stuck there while the whole block gradually falls to the ground.”

The chief executive of the Institute of Strata Title Management, Richard Holloway, said changing the laws would inevitably leave some people feeling disenfranchised. ”People don’t want to leave – they will say ‘I want to live the rest of my life in the area that I know’,” he said. The Property Council has proposed a range of measures to safeguard the rights of owners, including independent valuations for owners not wanting to participate in the redevelopment and the establishment of a strata schemes commissioner to oversee the process.

PAUL BIBBY URBAN AFFAIRS

January 16, 2010 Sydney Morning Herald