Wanna Buy a Slightly Used Strata Apartment?

Next Saturday (24 November) in Sydney, the Owners Corporation Network is holding a seminar about buying strata apartments in older buildings with presenters sharing knowledge and experiences about the benefits and pitfalls of older strata apartments.

It's a worthwhile topic and many strata apartment buyers could certainly benefit from more knowledge.

But, it also made me think about the idea of 'new' and 'used' apartments and why people don't (and shouldn't) think about them like cars or other products.

After all when you decide to buy a car one of the first things you decide is between buying new or second hand.  That will usually depend on price and what you can afford since older cars are usually worth less.  But sometimes you're after a specific model that no longer exists or has become a collectors item.  Next you'll have colour, trim and specification preferences.  And, then you want to check the condition (usually getting an auto service inspection).

But it's not quite the same for strata apartments.

Older apartments aren't cheaper than new (and in some case the opposite occurs as developers offer incentives to sell in slow markets and discounts for pre-construction sales). And, people don't tend to think of apartments as used.  The apartment features do make a difference to buyers but, surprisingly, the levels of pre-purchase inspection (building and strata records) are much lower than for cars.

Despite strata apartments being a manufactured product (bricks, timber, steel, glass and finishes) with a finite life - they are marketed and perceived to be like land by most stakeholders.  To me it's an interesting outcome that does not match the reality of strata ownership.  

So, wanna buy a slightly used strata apartment - only occupied by a little old lady on Sundays?


Francesco ...