For most Kiwis, the “quarter-acre dream” is shrinking.
Sure, we New Zealanders still love our property, but a growing number are opting not for the traditional three-to-four-bedroom house, vege garden and bowling-green lawn, but for the low-maintenance appeal of apartments and units.
Where the mere thought of living in such close quarters is just too much of a squeeze for some to even contemplate, others really enjoy the lifestyle.
Especially for those who have lived solely in residential sections, moving to an apartment or unit – and a more communal way of life – can make for quite a quantum leap in property ownership and neighbourly relations.
Looking beyond the facade
If you’re considering an apartment or unit, either as your new permanent home or even an investment, whether it’s really going to be your cup of tea stretches beyond its size, location, facilities and aesthetics.
You’re looking at a whole new set of dynamics and rules. Such properties have unit title plans, detailing the units themselves, any “accessory units” (including carports, gardens and verandas), and “common property” (for example: driveways, entrances, corridors, shared lawns and laundries).
Apartments, units and even small developments are run by a body corporate – all of the owners acting as a group. Depending on the size of the development, a committee can be elected to organise and oversee the running of the property, or, particularly in the case of larger apartment blocks, the body corporate might hire a professional management company.
A functional, organised body corporate is a must. Essentially, most of the body corporate’s role centres on ensuring the entire property is well maintained – be it by a committee or management company – and that repairs and improvements are properly planned, budgeted for and carried out.
The body corporate is set up formally – like a company, with the Unit Titles Act setting out firm minimum rules around its powers and, also, the responsibilities of individual unit owners.
A good body corporate should be able to provide you with appropriate documentation on what you’re buying into in terms of rules and regulations, as well as an indication on the levies you’ll need to stump up as part of your contribution to maintaining the common areas.
Size counts
Both the size of your levies and the say you get in any decision-making depends on the area you own. While owners of larger units pay more in annual upkeep fees, they’re also entitled to a bigger say at decision time.
Taking on a role on the body corporate’s committee is no small task. Because of the weight of the responsibility, the onerous workload, plus the often sizeable funds entrusted, most unit owners don’t want a bar of it and, instead, hire management companies.
Another sign to look for in assessing how a property is being run is a properly documented, long-term improvement and maintenance plan. I’m always heartened, too, to see a “sinking fund”, where everyone pays a bit more each year to cover bigger projects or urgent works that come out of the blue.
Also, remember to ask about insurance. With unit title ownership, insurance is likely to be the body corporate’s responsibility – not just for the common areas, but for the individual units as well. All units generally come under the same policy, because what affects one – a fire or a flood, for example – tends to affect all.
Is it for you?
If your investigations show all is in order with the body corporate structure and operation, you still have some significant questions to ask if you haven’t owned this type of property before.
The most common problem I see is people not fully understanding what they’re buying into. They really struggle with the fact they can’t just waltz into the yard and prune a tree, change their garden furniture or build a conservatory without consultation.
Those who make the smoothest transition to more communal living are the ones who’ve got their heads around the system, are comfortable with, and realistic, about the communal decision-making process or, alternatively, are happy leaving most things in the hands of a trusted management company.
And, of course, personalities do come into play. Living in such close quarters, if there is trouble in paradise, the disquiet can reverberate quite strongly throughout the whole property. Again, though, if all the appropriate frameworks and processes are agreed by the body corporate before they need to be applied, that in itself should narrow the scope for disharmony.
It’s the small things …
However, for all the potential bones of contention, it’s often not matters of high finance or the like that cause neighbourly rifts. I’ve found tempers can get quite frayed around the little stuff – down to the acceptability of hanging smalls on a balcony to dry.
Apartments and units can be just the answer for older folk, or those with busy lifestyles, who’ve done their dash dedicating weekends to maintaining larger homes and yards. But, for the uninitiated, it can be a big move – so do your homework and make sure you can live comfortably with your decision.
