A poorly managed body corporate can turn your dream apartment into a financial nightmare. Knowing the warning signs before you buy is crucial.
Red flags in strata reports include: a low or depleted sinking fund, a history of special levies, ongoing legal disputes, deferred maintenance on common property, and high owner-occupier to investor ratios (which can indicate lower maintenance standards).
Also watch for: buildings with known defects (especially those built during the early 2000s boom), committees dominated by a single owner or faction, and unusually low strata fees that suggest maintenance is being deferred. A qualified strata inspector can help you interpret these reports and identify potential issues that might not be obvious to untrained eyes.