Well, I bought my first IP yesterday
. Now, I had been looking for a house, but due to concerns with ongoing financial commitments, I went to view a couple of units. Got a great feeling about the second one and put in an offer, which was accepted after some negotiation with the vendor.
Now, my problem is that seeing as I hadn't been looking at units before, I have absolutely no idea what is involved with Body Corp etc. I've tried the usual Google searches etc, but there is just too much info about these subjects in a language I can not understand!
Can anyone explain to me things that I need to watch out for or check regarding Body corps? I know there is an administrative fund and a sinking fund I need to pay into, but what sort of things do these usually cover? Am I still responsible for insuring the property for everything, or are some issues, such as public liability, covered by the B.C?
Sorry to ask what, for some, are simple questions, but I can't find anywhere that tells me in simple terms. Ther's a lot of legal speak out there!Thanks in advance for any help.
Good luck with the new IP.
Your contract documents should tell you abut the Body Coprorate. It is basically responsible for all common areas as well as the building(s). That includes all of the maintenancce and nsurance including public liability.
You will need to take out your own insuranve for fixtures & fittings (stove, carpet, etc>) as well as landlords insurance.
It is porbably worth caling the Body Corporate amanger and getting a hold of the rules and the last set of accounts. That will give you some insight to the state of the site.
Cheers
Hi
I'd suggest getting a Strata Search done on the Body Corporation – ideally before you finalise the purchase. This search will highlight any building problems and low levels of cash in the Sinking Fund – both big ticket items to watch out for.
The Sinking Fund is used for major repairs to the unit, new carpets, painting, etc etc. The Admin Fund is used for more day to day running of the property – common property electricity, management fees, etc.
The Body Corporation holds an AGM – suggest getting to that and ideally being on the committee if you can.
Good luck with it.
The BishThanks for the info guys. I'll get right on it!
You will find that your solicitor will do a search of the body corporate for you and provide a swag of documents as a result of that search.
They will then alert you to anything unusual e.g. disputes between the members, the committee, the body corp manager and / or the building manager, lack of fudns in the sinking fund etc.
Kerry
. Now, I had been looking for a house, but due to concerns with ongoing financial commitments, I went to view a couple of units. Got a great feeling about the second one and put in an offer, which was accepted after some negotiation with the vendor.
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