Strata can lead to predatory, bullying and stalking-type activity: Owen Hodge Lawyers
Discussing the recent changes to the New South Wales strata model by-laws, Sydney law firm Owen Hodge Lawyers pointed to some of the difficulties of strata environments including predatory and bullying behaviour.
Managing partner at Owen Hodge Lawyers, Rolf Howard, said that strata laws need to be considered to tackle some of the less favourable aspects of strata living.
“Many lawyers act for individuals involved in neighbourhood disputes. Those involving strata environments are by definition more hotly contested. Strata environments can often create predatory, bullying and stalking type activities which in my opinion also need to be addressed in strata laws as well as building design to minimize these increasingly common types of complaints,” said Howard.
He noted that with the population increasing, and more being driven towards high-density lifestyles, these issues may increase.
“Australia is yet to experience the significant strata law issues which higher apartment density cities such as Shanghai and Hong Kong currently experience. Potentially more issues could arise in the future as the population and density levels within Sydney’s inner city perimeter increase.
“In the future developers building densely populated towers will need to carefully consider designs that strategically address noise and safety issues as a means of minimising complaints,” he said.
One example of the law changing for the better, he noted, is around the recent strata model by-law changes surrounding pets in residential buildings.
Recent changes to the NSW strata model by-law surrounding the acceptance of pets in residential buildings is set to give apartment owners more certainty and potentially increase the number of animals that are currently living in these buildings.
Not only have investors been given clarity, but tenants also.
“These new laws provide further clarity for pet owners in strata properties and the use of premises, such as parks, surrounding the buildings. This certainty also facilitates diversity between strata properties. Body corporates still have the power to set their site specific rules, however they need to obtain a consensus from other owners regarding this issue,” said Howard.
Five things to consider when purchasing strata-titled apartment buildings:
1. When buying off the plan consider the type of tenant that might be attracted to the property. Do not rely on the messages conveyed in glossy advertising. Low socio-economic areas can attract problem clients.
2. Review a copy of past body corporate minutes. Purchasers need to look at the money available in the sinking fund, the investment in maintenance as well as potential future structural/maintenance costs. Can the sinking fund cover them?
3. Consider if the property is in a position that is likely to lease easily during an economic downturn. What are the unique characteristics that will attract tenants?
4 Number crunch to determine if the property will generate a yield which is sufficient and appropriate for the risk involved. Direct property investment can be very rewarding however, for some investors, it reflects a significant investment in just one asset class.
5. Seek the advice of an accountant, lawyer and mortgage adviser regarding property and mortgage structures to ensure your money is working to your advantage.
Source: Owen Hodge Lawyers