Bad Idea to Buy an Older Place with High Strata Fees?

[Deactivated] on 08/06/2020 - 12:23
Last edited 08/06/2020 - 14:25 by 1 other user

As a first home buyer I've been looking at many units in Sydney around the 580k mark. So far I've only been greeted with brand new apartments with very low strata fees ($500-$700/qtr) and older (1999-2004 era) apartments with high strata ($1200-$1600/qtr).

I like the fact that older places may have less structural defects and larger spaces, as well as more possibility for internal customisation and lower purchase prices, but is it a bad idea getting a place with relatively high strata levy?

Also what are the things I should be aware of with places from about 15-20 years ago?

And I'm just going to make things more complex… The older places are about twice the size compared to the new ones (and three bed vs two bed)

Poll Options

• 7
  Go new (low strata)
• 12
  Go old (high strata)
• 8
  Look for other places

• 

  thatonethere on 08/06/2020 - 12:31

  +3

  At 15 to 20 there is often some major refresh activities such as common areas, exterior painting and roofing. Check the strata minutes etc to see if they are planned.

• 

  MrHyde on 08/06/2020 - 12:48

  +1

  New places have low strata 'cause a lot of items are still under warranty cover.

  The cons of new places is build quality; room sizes (with older places normally having larger rooms).
  Pros of new places are building facilities are newer and more (movie rooms; party rooms, etc)

  A real estate agent once told me just look at net present value of the strata fees and factor that into your price.

• 

  CyberMurning on 08/06/2020 - 12:50

  +3

  difficult situation.
  old = high strata but you already know the foundation is strong
  new = low strata but you may get to pay $1m renovation ie mascot and opal

• 

  Meho2026 on 08/06/2020 - 14:14

  +5

  In new builds the strata levies are often set unrealistically low by the developer in order to sell.

  • 

    jjjaar on 08/06/2020 - 14:26

    This. Have a look at what levies in the area you are looking at for builds that are 5-10 years old and this is what you should expect from the new builds once all the warranties are up.

• 

  Sweet3st on 08/06/2020 - 14:48

  +4

  High strata fees are a good sign that the building is being properly maintained and they are putting money aside for future works. It may seem expensive but probably cheaper than maintaining your own house. Better to pay more in levies upfront than get hit with some surprise special levy. You should check AGM and strata committee minutes.

• 

  CheapskateQueen on 08/06/2020 - 18:10

  +1

  I wish I bought older rather than new. just like everything else "they don't make em like they use to".

  depending on how new you're talking,paying for the strata role (history) could tell you a lot. also, pay close attention to the finishings. mine looked great when I saw it, but only noticed the cheap finishes after I moved in. plus I find old builds to be really solid with great sound insulation. I never noticed my neighbours when renting an old apartment and obsessively speak to my friends, pay attention when I'm visiting, and it's always quiet. Meanwhile, I'm getting a quote on how much it will cost to replace my ceiling and redo my joining walls because I can hear every footstep thud like a hippo. Might be too prohibitively expensive but that's just how bad it is.

  Not all new are crap though, but anything in the last 10 years will have an inherent risk

• 

  Poppin on 08/06/2020 - 20:37

  In this case older is probably better. Also calculate the strata per square meter to get a fairer comparison if the older places are larger.