Body corp fees

[markotsg]

Hello

 

I am new to Australian property. I can see that houses prices in better areas are sky high, but prices of Units, Townhauses more reasonable.

 

I know you normally pay Body corp fees ( sinking fund, insurance,etc) for apartments, do you pay this for Units and Townhauses?

 

How much per year roughly are these costs?

 

Many thanks all

 

Marko

[newjez]

If there is a strata title there will usually be body corp fees.

 

They can vary enormously, depending on facilities. Also, be wary of low rates, as you may need to chip in if something big needs doing, (or else nothing big ever gets done).

[Petals]

My friends paid 18000 a year for Body Corporate fees, depends what is on offer. Upmarket apartment, gym, swimming pool, carpet in the hallways etc. Just depends.

 

Body corporate fees are levied at different amounts in the block. There is a list attached to the title and plan of subdivision which sets out how many parts any particular unit will pay.

 

Have to say knowing all about them, Body Corporate can be good one year and terrible the next. As a rule of thumb lifts etc make body corporate fees expensive.

 

Everyone gets to vote so if you have a lot of investors in a building they may not vote for any upkeep increases so its like taking a tatts ticket.

 

Not a fan at all.

[rosiew]

In Melbourne the body corporate fees range from $1500 per year for a small block of apartments with no facilities apart from a small garden and car park, but then as Petals says, can reach high levels. If you buy in a high rise building with lifts, pool, gym etc then it could easily be $10,000 per year. So, to avoid a high fee avoid lifts and do not go for amenities such as pools, gyms and large communal gardens unless you will realistically use them several times per week.

 

Many smaller blocks no longer accumulate much of a fund for future repairs and prefer to split the costs between the owners when they arise. This is partly because owners do not want to invest in a fund that may never benefit them. But it also has the effect that maintenance may be slow to happen if the block needs painting, a new fence etc.