Browse Forums Real Estate 1 Mar 14, 2011 7:49 pm hi all, hoping someone here may know. were looking at buying a townhouse which is part of a strata but weve been told while they were built around 5-6 years ago the strata is new, maybe 1-2 years old and as such as such the levies are about 2-3 times higher (800pq) than every other strata property weve looked at, including one which has two lifts, a pool and massive amounts of common property (350pq) whereas the property we like has no lifts, nor pool, and just a driveway down to communal parking areas. what were wondering is if this is normal for the developer (presumably) to not create a strata plan until this late in the game? obviously theres the potential that theres no sinking fund at all, or a very minimal one, which is a bit scary as there are obvious repairs needed to some on the outside areas, which may explain the current high levies. thanks. Re: buying a strata property 2Mar 14, 2011 9:49 pm $800 per quarter sounds a bit rich. Are they charging this much only for a temporary period of time? Is the money being raised for something in particular? Do they have a sinking fund? These things you'd be wanting to know from the AGM minutes. Speak to the strata manager to get them. In answer to your question, I guess normally a developer will create a strata plan earlier in the process but that's because they'll sell them individually. If they don't plan to sell them individually, they don't need to strata title them straight away. Re: buying a strata property 3Mar 14, 2011 10:40 pm Quote: $800 per quarter sounds a bit rich. Are they charging this much only for a temporary period of time? yes, its supposed to come down by 100pq next year - the complex is 22 townhouses, $700pq is still double that of most of the larger complexes weve seen. and we only have the agents word that its coming down again. Quote: Is the money being raised for something in particular? re-painting, its all come off the metal supports. and maybe some other repairs. although i would have expected a special levy to get applied, not just increasing the base levy. Quote: Do they have a sinking fund? These things you'd be wanting to know from the AGM minutes. Speak to the strata manager to get them. strata managers want their fees to produce the report. we like the place enough so well probably hand it over. though we still require the owners authorisation for them to release it to us. Quote: In answer to your question, I guess normally a developer will create a strata plan earlier in the process but that's because they'll sell them individually. If they don't plan to sell them individually, they don't need to strata title them straight away. wouldnt that severely impact the sinking and admin funds if they didnt strata it for 3-4 years? its those early years that allow stratas to build up the funds for later. starting now means you need massive levies to catch up - which may explain whats going on here.. Re: buying a strata property 4Mar 15, 2011 8:43 am rhom Quote: $800 per quarter sounds a bit rich. Are they charging this much only for a temporary period of time? yes, its supposed to come down by 100pq next year - the complex is 22 townhouses, $700pq is still double that of most of the larger complexes weve seen. and we only have the agents word that its coming down again. I wouldn't trust the agents word. Best to see it in writing. Still sounds expensive at $700. rhom Quote: Is the money being raised for something in particular? re-painting, its all come off the metal supports. and maybe some other repairs. although i would have expected a special levy to get applied, not just increasing the base levy. Maybe they didn't want to put owners under too much financial strain by obtaining the money all in one hit. rhom Quote: In answer to your question, I guess normally a developer will create a strata plan earlier in the process but that's because they'll sell them individually. If they don't plan to sell them individually, they don't need to strata title them straight away. wouldnt that severely impact the sinking and admin funds if they didnt strata it for 3-4 years? its those early years that allow stratas to build up the funds for later. starting now means you need massive levies to catch up - which may explain whats going on here.. Yes, you'd think they would be putting funds away for the inevitable maintenance that crops up but it's up to the people running the group whether they decide to do that. Lots of groups aren't that well run and only look at covering the short-term expenses. I guess you need to weigh up the strata fees with how much you love the place. Keep in mind that it's a large group with many opinions so it could be hard to get your view across if you do want to get them to agree to reduce the strata fees. Also consider if you go to sell and the strata fees are still expensive, you could find it harder to sell. I don't want to sway you either way, but it is a negative so make sure you factor it into your offer price. Re: buying a strata property 5Mar 15, 2011 5:19 pm Definitely get a strata report. It will tell you what money they have and any upcoming expenses. Special levies are usually only imposed if there are urgent works. Otherwise levies are usually raised to cover upcoming expenses. You need to look at BOTH how much money there is AND any major works needed. Even though the building is not that old there can still be large costs. I know in Sydney in 2003 there was a mad rush on getting buildings built before the boom ended. There are quite a few blocks with faulty workmanship, now costing owners big $$$$. What state is it in? I know Qld strata fees seem to be much higher than NSW. I bought a unit once with -$30 (that's MINUS $30) in the sinking fund and one with $180,000 in it. Re: buying a strata property 6Mar 15, 2011 5:57 pm we found out some more information that the strata may have existed since day 1, just that an investor bought all the properties in 2005. they sold 14 last year and are selling the other 6 this year. if theyve had total control of the executive committee since the start then its no wonder they set the levies low. and it sort of makes sense for an investor to get out once the builders warranty has expired but it still seems like a crappy thing to have done. its in gosford, nsw. we received authorisation from the current owners to get the strata information so well be paying for the report and seeing what our solicitor says about it. well also be getting a building inspection done and giving them a copy of the strata report so they can verify any repairs required. we were actually hoping that we could purchase two of them, one to live in and one as an investment. the higher levies worry us but if they can be explained then we can accept that, and the sale price is on the lower side, presumably to offset the strata fees (and potentially the state its in). i guess the report will show that and explain everything else. Re: buying a strata property 7Apr 16, 2011 1:34 pm i would stay away from high strata rates, do you already havea gym member ship? do you actually go swimming all the time? you could find something with less costs, that can be renovated to look amazing. that way you can resell easily. we just had a big prob with strata commititee in 1 of out IPs so not a fan of strata at the moment...lol Make your own Organic Vegetable Patch, Learn How to Build a Pergola http://www.homestyledesign.com.au Re: buying a strata property 8Jun 02, 2011 9:23 pm I would see a high strata levy as a red flag. We sold our appartment to finance our build. When we bought appartment 5 yrs ago, and only just finished being built (south hurstville) strata was $340, over the 5 yrs it increased to $600. Stair cases would soon need painting and some issues with the build not addressed in builders insurance. Not much of a sinking fund due to a new fund. So we were glad to get out when we did but, yes you really need to see the strata meeting minutes and any other documents you are entitled to. Ours wasn't so good, hope yours is sooo much better. Here's to good things! If not there then wherever you decide on. Re: buying a strata property 9Jun 03, 2011 5:21 pm I don't normally get building reports done on strata units BUT if there seemed to be a lot of workmanship/building type stuff coming up in strata I'd get one. You never know what else is about to crop up. You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 16146 Ask for some kickplate to be added and also for tradies to be requested to use lanyards on tools on that side of the building. Be respectful and have the discussion… 1 1690 The setback from the kerb is 4m. It is council land to provide an area for services like sewer main, gas mains, water mains, underground power or poles for overhead power,… 4 2394 |