All Topics / The Treasure Chest / Body Corporate Fees

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  • Profile photo of crissycrissy
    Participant
    @crissy
    Join Date: 2003
    Post Count: 0
    September 5, 2003 - 4:31 am

    Like most people, I have noticed that increase in city and regional prices for houses, and have decided to look towards investing in units. I am unsure about the additional fees that you incur when buying units, such as body corporate fees. Does anyone know of a web page containing helpful information regarding these fees or perhaps there is a formula you can use to compare fees against rent received? Any hints would be appreciated. Thanks

    Profile photo of MJKMJK
    Member
    @mjk
    Join Date: 2003
    Post Count: 157
    September 5, 2003 - 4:57 am

    Chrissy,

    I don’t kmow of any web site but BC fees are just another cost like rates, agent & insurance fees.
    They are tax deductable. They are levied annually in installments.

    MJK

    Profile photo of HueyHuey
    Participant
    @huey
    Join Date: 2003
    Post Count: 213
    September 5, 2003 - 5:17 am

    Hi Crissy,

    There is no formular for it. It depends on how much the Body Corporate management agency spends for maintenance.

    BC fees for city units are varied considerably & can be very high especially in buildings with resort facilities & lifts. You have to find out its BC fees & Sinking funds when consider buying. Mine is over $800/quarter. It takes out a large chunk of my rental income. Luckily rates & land tax for units are much cheaper than for houses.

    Regards

    Huey

    Profile photo of Sala74Sala74
    Member
    @sala74
    Join Date: 2003
    Post Count: 10
    September 5, 2003 - 6:04 am

    Hi Crissy & everyone.
    Ive have come across this great site a few weeks ago and have been reading the forum with interest.

    crissy,

    I also came across this site a few months ago that may be helpful.
    http://www.huoa.asn.au/

    Regards,

    Sala

    Profile photo of MaryBMaryB
    Member
    @maryb
    Join Date: 2003
    Post Count: 18
    September 5, 2003 - 7:09 am

    My experience is that Body Corporate Fees tend to vary according to the state the IP is in. QLD for instance has high fees. Our IP at the moment has body corporate fees of $1700 per year. Yet the unit we live in, in Sydney, is only $1100 per year.

    Usually if the property has a lift, swimming pool and lots of landscape gardens, as well as on-site manager, you are going to be up for a bit of money.

    But don’t let that stop you, just factor it in.

    The benefit of BC fees is that they include insurance, and repairs for things like the roof, etc, whereas if you purchased a house you would have to come up with the money for these things.

    EG: Our IP (townhouse) in QLD has had a leaking roof and the BC has to repair it. If it were a house we would have had to repair it ourselves.

    All the best with your IPs

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