The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 326: Can You Rely on a Strata Report Provided by the Vendors’ Agent?

Depending on a potentially biased strata report could lead to problems later on, like unexpected costs or hidden issues with the property.  Without clarity on what might be omitted or misrepresented in these reports, buyers risk making decisions based on incomplete or biased information, therefore jeopardising their investment.

Today, we are joined by Michael Ferrier, the founder and MD of EYEON Property Inspections — who has been in the property business for more than 15 years now. With a decade and a half dedicated to perfecting property inspections, Michael's here to help us decipher the characteristics of a reliable report and whether or not it's smart to trust them from the seller's side.

Michael explains what needs to be seen in these reports and how they can help you decide if you want to buy a place. He talks about looking for missing info and warning signs that could mean trouble later on.

So, if you're thinking about buying a place—whether it's your first time or not—this episode is for you. Tune in as we break down strata reports and learn how to make smarter choices when it comes to buying property.

Episode Highlights:

00:00 - Introduction

01:03 - Who is Michael Ferrier?

01:57 - Thoughts on the issues surrounding strata companies about potential misconduct

04:50 - Strata managers’ fees haven’t gone up in 15 years

07:27 - Do undisclosed commissions have an impact on strata reporting?

13:15 - Statutory regulations regarding strata management in NSW

14:35 - Who writes a strata report? Do they need to be qualified?

17:06 - What do buyers typically do once they get a strata report?

21:48 - What does a strata report look like?

25:13 - Red flags you need to spot in a strata report

30:05 - Will properties with clear strata info soon fetch higher prices?

32:23 - Determining a good, moderate, average strata report

36:13 - Key factors to focus on when assessing insurance details in strata reports

39:07 - What are the consequences of owners' reliance on underpaid strata managers?

41:46 - How are strata managers handling maintenance issues in aging buildings?

47:26 - Insights on urban development and zoning regulations

49:09 - Michael Ferrier’s property dumbo

About Our Guest:

Michael Ferrier is the founder and MD of EYEON Property Inspections. Michael founded EYEON because he saw the opportunity to turn a cottage industry into a professional level service, offering high quality reports and outstanding customer support to property buyers and sellers. Michael has over 35 years of experience across government policy, financial services, banking, franchising, building small businesses, and, of course, property. A keen golfer and rugby nut, Michael says that finding solutions to common problems is very rewarding. The challenge is that solutions often require a change in behaviour.

Connect with Michael Ferrier:

Resources:

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Chris Bates