Home > Finance, Home, Home Loan, Loan, Mortgage > Want to Own a Home Unit? Strata Title! Body Corporate! Tell me MORE!
Nov
03
2009

Want to Own a Home Unit? Strata Title! Body Corporate! Tell me MORE!


Creative Commons License photo credit: yeowatzup

our apartment block
Creative Commons License photo credit: AndyFitz

If my property is a unit, do I have to pay for Body Corporate Fees?

 

When you buy a property and if it is a unit, there are certain conditions that you may want to take into account.  One example of this kind of property is an apartment unit, wherein a strata report is essential.

Now, a strata report is a report on the history of the building, all recent repairs undertaken, any disputes or areas under investigation, monies in the bank to cover repairs and maintenance and the likelihood of any special levies, as well as general information on insurances, by-laws, harmony etc.

Most apartment blocks are managed by a body corporate, which is responsible for renovations, levies, insurance claims, structural defects and legal disputes. A strata report will ensure the corporate body has sufficient funds, and assess the likelihood of renovations and special levies which could cost you more in future.

In other words, a body corporate fee (often called a levy) includes your share of the buildings ongoing costs and is required to maintain and the upkeep and the appearance of the building and its surroundings. It is created as a simple way of sharing your costs. It would be a unmanageable  if everyone  tried to separate the insurance and the maintenance of the their individual part of the building.

Body corporate fees are usually made up of 2 parts, namely the Administration Funds and the Sinking Fund. The administration fund usually goes to the day to day upkeep of the property while the sinking fund is saved for the larger maintenance issues such as the outside painting of the building, roof restoration etc.

With that said, there would be a body corporate manager that would be appointed for the administration and the collection of fees. But, they will not make the decisions, they work on behalf of committee and implement the committee decisions, but they are there to help insure the lawfulness of committee decisions.

Now, the Committee is usually made up of a selection of apartment owners that choose to be part of the committee and have been elected by the votes of the owners of  apartments in the complex.

Sometimes  people will think of body corporate fees as an expense but the good side on to it is that you will get what you pay for.  For a rule of thumb, the larger the unit and the better views that you have in your unit property (larger gardens, more facilities, a large pool etc.) the more the insurance, maintenance and upkeep.

 If you would like more information; contact julie@novastarfinance.com.au

Visit us at www.novastarfinance.com.au

Public Housing Under Construction, Queenstown, Singapore

tags: ,
posted in Finance, Home, Home Loan, Loan, Mortgage by Finance Help

Follow comments via the RSS Feed | Leave a comment | Trackback URL

Leave Your Comment

You must be logged in to post a comment.

 
Theme by openark.org