Hi all,
Ive just started looking into flats/duplexes, I have a question about body corp fees. This is probably a very basic question but
I cannot find any information about this stuff anywhere.I was looking at some flats up north $199,000 and body corp was $600 pa, then I looked at a duplex in brisbane west for $170,000 ,
and the body corp is nearly $2000.my question is how is body corp worked out, If the body corp is for a duplex do I have a say in how much it is or is there specific formulas, needless to say I was shocked at the huge difference. I have no idea what factors affect the fees, what is normal and what is not.
Or is it worked out privately so every property you look at can have completely different fees.
and second question, is home and contents inusrance or any insurance part of the body corp.
Cheers
TomBody corp fees will cover a lot of things.
Structural insurances and PI insurance. Maintenance and repairs, running of facilities inc pools and lifts. Accounting and legal fees etc etc. Bigger complexes may even have employees.
So for a duplex if will be inexpensive but for a hirise with lifts, pool and gym etc etc it will be significantly higher.
As an owner you become part of the body corporate and get to atttend the meetings and vote.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Tom
Body corp fees are paid for 2 purposes:
Admin Fund covers items such as cleaning, lawns, gardens, repairs and maintenance to buildings, pools grounds etc, management fees, common electricity and water and insurance.
The Sinking Fund raises money for the long term repair and replacement of the major items such as painting, fences, roofing, guttering, garage doors etc etc.
You contribute to both each quarter.
Therefore, levies can vary considerably depending on the size of the complex, the facilities it has, how realistic owners are about their expenditure, its age etc.
All owners can have a say in the amount paid, but you must be realistic. ie you can’t pluck an amount out of thin air because it sounds “affordable”. If there is a managing agent, they will prepare an annual budget based on past/known expenditure etc.
Strata insurance covers the building and common contents (carpet, paint etc in stairwells or common areas). You need your own landlords insurance for the contents in your unit ie paint, light fittings, window coverings, carpets etc. (tenant insures their own furniture and belongings)
Hope this helps.
Wake
Hi,
I just wanted to confim a couple of things –
the price you pay is also affected by who it is managed by. By this i mean if you have a small group, it can sometimes be better to have it self managed. I do this for one of my units, and it means that we only pay 400 a year, whereas that can be a starting point for most body corps per quarter. That said, this can only be done if its a small group, or if you have alot of knowledge on how to run these things. There is a reason you pay so much money.Also, your body corp insurance, usually, you will find if you looked into the small print, that your only covered for the building itself. This is what you pay for, but you need to separately insure your contents, things like carpet, curtains, anything on the inside needs to be covered, because the outside is only covered by strata. I think youll find this is fairly standard with all property. Also, if you have bought a strata property, you will not be able to get landlords insurance at all. I rang a few of the top landlords insurers, and because there is already a policy in place, i couldnt get it. Definately check out all your options with insurance.
Every property may pay differently, because it is worked out on the size or allocation of the unit. But it wont be a big difference, unless youve got a penthouse or something!
Good luck, and make sure you check out the minutes of the meetings, they will tell you a lot!
You can definately get landlords insurace on a strata property. Landlords ins has nothing to do with the building itself, and therefore it makes no difference whether it is a free standing dwelling or a strata unit.
Make sure you understand clearly what the different types of insurances cover, so you are not left exposed anywhere.
Wake
Thank you everybody some very good and well needed advice.
I thought I understood the basics of body corp when I first starting looking into things but now I see it is a lot more complicated, I think I will have to make sure I do my due dilligence with this as well.
as with everything to do with real estate the less you understand it the more trouble you can get into, ignorance is blissfull but very dangerous.
ok that means time to put my head down and acquire the information I need.
Tom
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