Buying a new property is more than just spotting a ‘for sale’ sign one day and moving in the next - it requires research, an understanding of what is to come and breaking down real estate jargon to get the most out of your finances.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

What is a strata title property?

When purchasing a house, you purchase the land title or the entire block of land. However, if you buy a property that is part of a strata title, you own more than meets the eye. Strata title property is common among ‘lots’ such as units, apartments or townhouses where your ownership also includes a share of the common property including areas like foyers, lifts, fences, gardens and swimming pools. Areas of common property are generally managed by a legal entity or in some cases they are the shared responsibility of all property owners of the building.

Classification of the legal entity representing the strata title depends on the state or territory the property is located is in and the type of scheme that property is organised under. This means the legal entity may be known as the owners corporation, body corporate, strata company or community corporation.

The role of a legal entity

An owner’s corporation or body corporate in a strata building maintains the common property.  This legal entity is made up of all lot owners. In some cases where the property has a mix of commercial and residential lots, it may have multiple committees to divide responsibilities and costs. Often when this is the case, the owner’s corporation may vote for lot owners to form a committee and give them specific responsibilities to make decisions. 

An owner’s corporation can make rules which are binding on the owners and tenants regarding the use of common property. They can also introduce by-laws that suit the residents of the strata scheme.

Strata title property responsibilities

A key cog in the strata title property machine is understanding your responsibilities as a lot owner since they tend to differ from traditional properties.

As a lot owner, you are responsible for:

  • Abiding by the laws as set out by your legal entity.

  • Notifying the legal entity if you sell your property, or if your tenants change.

  • Paying your legal entity levies on time e.g. body corporate fees. These cover your contribution to the maintenance and repair costs of common property.

  • Attending owner meetings.

Pros and cons of strata title property

When considering whether a strata title property is right for you, it’s important to consider the pros and cons of each in making your decision.

Pros

  • Living in a strata title property means the common area maintenance is managed by the legal entity and you are normally only responsible for directly managing your own lot. The benefit of this is you can head off on holiday knowing the strata manager is responsible for any issues that might occur while you’re soaking in some much needed sun. Each quarter you pay a strata levy that is then used to manage the maintenance of the common areas.

  • Affordability and location. First homeowners or those retired or elderly have the option to purchase a property in an area they want to live that would otherwise be unaffordable if they were buying a house.

  • Modern strata title properties include facilities such as a swimming pool, gym, landscaped gardens and outdoor entertaining areas. These are luxuries first homeowners would not expect when buying a home within a particular price bracket. To top it off, it's all regularly maintained!

  • People with little or no family can become part of a community in a strata title property and can become actively involved in the day to day operations.

Cons

  • Strata surcharges or strata levies associated with the purchase of the property. These charges are generally paid quarterly and are spent on the maintenance of the building, its facilities and surrounds. Generally, the larger the block with jam-packed features the higher the payments.

  • Council rates and utilities are charged for each unit, rather than the building as a whole. This means the owner has to pay these bills separate from any strata levies.

  • If you are in a complex where the owners corporation is ineffective, it can be a frustrating process to have any major improvements or changes made - you thought you escaped this after renting!

  • Depending on the strata title property by-laws, you may have to abide by certain restrictions relating to pets and performing any renovations or alterations to your property.

  • The value of your property is directly linked to the value of others in the complex.

Savings.com.au’s two cents

If you’re thinking of buying into a strata title property, it’s important to have an understanding as to what this means and what your obligations will be as a lot owner to determine if it is right for you. With house prices at an all-time high, strata title property can provide a cut-price way for you to enter the property market without compromising on features, yet the fees that come attached through strata levies may outweigh the benefits for some.

Whether you are taking your first steps into the property market, investing or simply looking to downsize, it’s important to consider your financial position and future outlook before making any property decisions.

Image by Drew Dau via Unsplash.



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