When it comes to strata properties, there are primarily three types: residential, commercial, and mixed use. Each one has its own unique characteristics and considerations, so let’s delve into each type individually.
1. Residential Strata:
Residential strata properties are primarily designed for residential purposes and are commonly found in the form of apartment buildings, townhouses, and condominiums. These properties are typically owned by individuals who own their individual units and share ownership of common areas, such as hallways, elevators, and amenities like swimming pools or gyms. The strata corporation, made up of the individual owners, is responsible for managing and maintaining the common areas, as well as making decisions on behalf of the community. Each owner pays strata fees to cover the costs of maintenance and repairs.
2. Commercial Strata:
Commercial strata properties are designed for commercial purposes, such as offices, retail spaces, or industrial units. These properties are typically owned by businesses or investors who lease the spaces to tenants. Similar to residential strata, there is a strata corporation that manages the common areas and makes decisions for the community. However, in commercial strata, the focus is often on rental income and maximizing the value of the property. The strata fees are usually paid by the individual owners or tenants, depending on the lease agreement.
3. Mixed Use Strata:
Mixed use strata properties combine both residential and commercial elements within the same building or development. This type of strata allows for a variety of uses, such as residential units on the upper floors and commercial spaces on the ground floor. It offers the convenience of living and working in the same location. Mixed use strata properties can be particularly appealing in urban areas where there is a demand for both housing and commercial spaces. The management and decision-making processes in mixed use strata are similar to residential and commercial strata, but with the added complexity of balancing the needs of both residential and commercial owners.
In my own experience, I have lived in a residential strata property where the owners collectively made decisions about renovations to the common areas, such as repainting the hallways and upgrading the lobby. The strata fees were used to cover these expenses. On the other hand, I have also worked in a commercial strata property where the strata corporation was responsible for maintaining the building’s exterior, including the roof and parking lot. The fees in this case were paid by the individual business owners.
It is important for potential buyers or investors to understand the differences between these three types of strata properties, as each has its own set of rules and considerations. Whether you are looking for a place to live, a space to run your business, or a combination of both, understanding the specific type of strata property you are dealing with is crucial for making informed decisions.