For a variety of reasons many people at one time or another consider moving to or investing in a strata development. For my U.S. readers I think you use the term HOA for home owners association. For many this option is attractive and I'll start with the pros of strata:
1. Shared risk; in a full strata situation you share the risk of all repairs and maintenance of building envelope and common areas with your fellow owners.
2. Outside work managed for you; most strata fees cover landscaping, road maintenance and snow removal.
3. Safety; many people like the idea of the security of a close knit strata and some are gated; some have secured entrances.
4. Travel ease; for snowbirds or people who travel a lot, they take comfort in living where neighbours are close and keeping an eye on their home while they're away.
5. Buy in costs; often strata initial costs are more modest that a single family dwelling.
6. Location; often stratas are located near recreation and public transport
7. Rules and regulations; these are in place to make sure, for instance, dead cars are not littering the neighbourhood or people aren't opening up day cares within ear shot.
For some, strata is an exercise in frustration. For example if you have a condo building needing repairs and require a 75% vote in favour, one person can lobby the building and come armed with enough voting power to veto any forward movement. And, you can't legislate stupid. If there are owners more interested in keeping monthly fees low so they can keep a larger portion rental income, for instance, they will never be in favour of building upgrades. Other cons include:
1. Rules and regulations; not everyone likes to be told what they can and can't do in their own home.
2. Pet, age or rental restrictions; often strata dictates matters on these three important elements.
3. Less resale flexibility; if a building has significant restrictions the pool of buyers is more select.
4. Escalating building costs if maintenance has lapsed; as mentioned above, if some owners aren't coordinating a good schedule of overall repair and upgrades there can be costly building issues.
5. Strata tyrants; stories are not uncommon of one person in any strata who is always making trouble and frustrating all other owners.
6. Lack of choice for contractors; unlike a single family home, the strata council will arrange for all strata repairs with whomever they choose. If you are making changes to your strata lot, often you need approval of the strata council before proceeding
7. Lack of restrictions; if there are not rental restrictions, it might be easier to resell, but you might have a transient group of inhabitants.
The good news is that working with a great Realtor, she will provide you with 2 years of minutes, all financials and reams of other information about any strata you decide to put an offer on. She will coach you on pros and cons as suited to your lifestyle and temperament. Information is power and a well connected Realtor will provide what is already recorded on the building as well as any relevant potential "issues" not yet recorded.
1. Shared risk; in a full strata situation you share the risk of all repairs and maintenance of building envelope and common areas with your fellow owners.
2. Outside work managed for you; most strata fees cover landscaping, road maintenance and snow removal.
3. Safety; many people like the idea of the security of a close knit strata and some are gated; some have secured entrances.
4. Travel ease; for snowbirds or people who travel a lot, they take comfort in living where neighbours are close and keeping an eye on their home while they're away.
5. Buy in costs; often strata initial costs are more modest that a single family dwelling.
6. Location; often stratas are located near recreation and public transport
7. Rules and regulations; these are in place to make sure, for instance, dead cars are not littering the neighbourhood or people aren't opening up day cares within ear shot.
For some, strata is an exercise in frustration. For example if you have a condo building needing repairs and require a 75% vote in favour, one person can lobby the building and come armed with enough voting power to veto any forward movement. And, you can't legislate stupid. If there are owners more interested in keeping monthly fees low so they can keep a larger portion rental income, for instance, they will never be in favour of building upgrades. Other cons include:
1. Rules and regulations; not everyone likes to be told what they can and can't do in their own home.
2. Pet, age or rental restrictions; often strata dictates matters on these three important elements.
3. Less resale flexibility; if a building has significant restrictions the pool of buyers is more select.
4. Escalating building costs if maintenance has lapsed; as mentioned above, if some owners aren't coordinating a good schedule of overall repair and upgrades there can be costly building issues.
5. Strata tyrants; stories are not uncommon of one person in any strata who is always making trouble and frustrating all other owners.
6. Lack of choice for contractors; unlike a single family home, the strata council will arrange for all strata repairs with whomever they choose. If you are making changes to your strata lot, often you need approval of the strata council before proceeding
7. Lack of restrictions; if there are not rental restrictions, it might be easier to resell, but you might have a transient group of inhabitants.
The good news is that working with a great Realtor, she will provide you with 2 years of minutes, all financials and reams of other information about any strata you decide to put an offer on. She will coach you on pros and cons as suited to your lifestyle and temperament. Information is power and a well connected Realtor will provide what is already recorded on the building as well as any relevant potential "issues" not yet recorded.
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