Are you planning to buy condos in a posh location in your city? The condos (condominiums) are certain parts of a real estate and come with lavish amenities. Well, would you like to buy such condos without reports of depreciation?
First of all you should know that the depreciation report in Brisbane is very beneficial for a buyer, as such reports help the buyers to know more about the long term expenses and prospective problems. However, very few people still now do not go for such reports to safeguard their investment.
Let’s know why people stay away from such Reserve Fund Study. Basically such reports are expensive to commission and the councils are not ready to invest on it. Also, at times the strata councils believe that the structure of the building is quite good and it is not mandatory to invest on the Reserve Fund Study.
The investors might also think that the depreciation report can decline the prospective buyers. In the absence of the report the interest rates to cover the risks are higher. So, a buyer, in order to ensure the quality of purchase, should look for the report.
The report ensures that the condo you are buying will not require an elevation in coming few years. At least it guarantees that your investment is worth and risk free.
A buyer should not only talk to the agent and buy the property. It is his/her duty to thoroughly check the engineering and construction details. It is also important for him to understand the design of the condos and verify its maintenance reports. He might also ask the strata council for the financial details, especially when the building is enormous.
If the strata council avoids giving the report to the prospective buyer, then the buyer has the right to ask them for the previous year’s strata committee’s meeting details. The meeting details will give you a clear idea that what is happening and what is assigned to happen in coming years. It is a good idea and buyers looking for condos should ask for it. However, the real estate agent should take the responsibility to ask the strata council for the reports on your behalf.
It is always advisable to examine the condo and the entire building and then invest on it. The purchase of condo does not mean that you are investing on your private living space, but also it means that you are investing on a certain portion of the building. The home inspector should come and inspect all the areas like living space, plumbing, appliances as well as the building condition to you. Ask for a written report in order to keep a trace of what wrong there.