Oh the woes of Strata!
Apart from the fact we can’t afford a house in the suburbs we want to live, we would be done with strata in a flash.
Anyway, apart from the regular pain in the backside that is strata, the biggest growing concern is increasing fees! Levies are going up by about 17%. Strata management fees about 13%. Grand annual total is ~$6,000 P.A for ~100m^2 in a block with 24 units, old lift, old pool, some grounds/gardens. No gym, heated pool, large common bbq areas etc.
We are of the opinion that the executive is just completely mismanaging costs. We realise they are ‘volunteering’ their time and are doing their ‘best’; but it is quite frustrating to see costs going up and up.
At the upcoming AGM we weill throw our hats in the ring to get on the executive to do our bit.
We are tossing around the idea of sticking a letter in everyone’s letter box addressed to the owners. It wouldn’t be a preachy letter, but just a FYI, as we are of the belief that the average owner would have know idea/concern/care that costs have risen this much over the last few years. It’s a fine line. We wan’t people to be as informed as we are, but we don’t want to appear meddlesome.
As for strata, pffft, i don’t think ever again.
Get on the committee and send a letter to all owners through their addresses (some may not live there).
Speak to the strata company about costs and find out why fees are rising so rapidly.
You get to vote on strata costs. Maybe they were in deficit and are trying to catch up? Maybe there was a big ticket item that needed addressing? You need to find out these things. Some people like to have a stockpile of money just i case. Me I prefer to have the money in my pocket and then I can take it out if/when we need it. How much is in the sinking fund?
What does your yearly expenditure letter say? Everything is itemised in that.
The strata managers may be hopeless. Some just use companies they know and don't get other quotes.
One strata of mine got one quote for work. I asked for 2 more quotes. Both came in at half the first quote. Saved thousands of dollars.
If the strata company is hopeless get rid of them.Where is the block located ?
Cheers
Yours In Finance
Richard Taylor | Australia's leading private lender
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