Purchasing into a Strata Scheme?
Two-lot strata schemes are becoming increasingly common but they are seriously misunderstood. Some owners choose not to run them as a strata scheme at all but this is a wrong approach.
These schemes must have an administration fund with associated levies and generally (with some exceptions) must have a sinking fund with associated levies.
Also, with only few exceptions, the Owners Corporation must take out building insurance, workers compensation insurance, voluntary workers insurance and public liability insurance. If owners take out their own insurance, they run the risk that the insurance cover will be ineffective because the owners individually don''t have the insurable interest.