One of the things I see often in body corporates looks something like this: Period Admin Budget Sinking Budget Total To Raise FY Ended 6/2014 $200,000 $50,000 $250,000 FY Ended 6/2015 $170,000 $100,000 $270,000 What this shows is that there has been a 50% increase in sinking fund budget from one financial year to the […]
posted on April 17, 2015 by
What Are Pre Issue Body Corporate Levies
Pre-issue body corporate levies, or interim levies as they’re sometimes called, are a response to the peculiarities of the end of financial year process for strata schemes. Body corporate end of financial year systems are different from the majority of the rest of Australia. The end of financial year can be any month in the […]
posted on March 18, 2015 by
Body Corporate Levies: Why Are They So Expensive?
One of the first questions people ask when they’re buying a unit is “how much are the levies?” It’s a smart question because it does no one any favours to buy a property they can’t afford to hold. The body corporate levies are a large part of those holding costs. Savvy buyers take the current […]
posted on February 18, 2015 by
Unexpected Body Corporate Fees
A key consideration when you buy any property is going to be whether or not you can afford the holding costs. And for units that means body corporate fees. It’s such an important issue, for both owners and body corporates, that legislation requires the current levies payable be disclosed to lot owners at time of […]
posted on December 19, 2014 by
What Is A Body Corporate Sinking Fund Forecast?
Whenever I prepare a strata report one of the few documents I always include is a copy of the Sinking Fund Forecast. I do that for a very specific reason; they’ve a valuable source of a lot of information about the strata scheme, the Sinking Fund and management. What Is A Sinking Fund Forecast? A […]
posted on June 16, 2014 by
Who Pays Special Levies: The Buyer of The Seller?
Special levies happen in body corporates more often than you might think, and, for some lot owners it’s “the final straw” and the reason they decide to sell. Does that mean any new owner automatically becomes responsible for paying those special levies? As with most things in the body corporate industry, it’s depends. It will […]
posted on June 2, 2014 by
Body Corporate Levies and Prompt Payment Discounts
Body corporate levies are different from other sorts of accounts; they attach to the lot rather than the lot owner. This is because a body corporate isn’t offering a service like a Strata Manager, or selling a product like Telstra. A body corporate is managing the affairs of a building for, and by, a group […]
posted on March 29, 2014 by
Beware Strata Levies That Are Too Low!
The other day I was asked: I am interested in buying a unit but strata levies are $900 per annum on old medium size block of 12 units. When I enquired with unit next door they pay $400 strata levies per annum. Is this possible to have two strata neighbours so different? This is 50 […]
posted on March 12, 2014 by
5 Persistent Myths About Body Corporates
I read a lot of body corporate records. Those records comprise everything from official documents to professional reports, minutes and of course correspondence. I can safely say, after all this reading, people have some really strange ideas about body corporates. Mostly those ideas are pretty benign, sometimes hilariously funny and in the end don’t make […]
posted on February 25, 2014 by
How To Find Units With Low Body Corporate Fees
Average body corporate fees in south east Queensland run around $5,000 – $6,000 per annum. That’s $96 – $115 per week. Many are a lot higher. The highest levy I’ve ever seen was around $25,000 p.a. or $480 per week. And of course many levies are much lower than that average. The lowest levy I’ve […]
posted on May 15, 2013 by
Substantial Levies In Arrears
Levies in arrears are always an issue for body corporates, but especially so when those arrears become substantial. I have defined substantial levies in arrears as over 20 – 25% of total funds held – calculated by dividing levies in arrears by current total funds held. This is the point where liquidity will start to […]
posted on April 17, 2013 by
How To Calculate Body Corporate Levies
Mention the word body corporate and most people immediately think of levies. I’m convinced it’s the one thing that everyone knows about body corporate’s that’s actually correct. Every body corporate does issue levies. What amount those levies are is vastly different from building to building. I’ve seen levies per lot as low as $55 per year and […]
posted on April 2, 2013 by
Has There Been A Contribution Lot Entitlement Change?
When a body corporate is registered the schedule of interest and contribution lot entitlements are set out in the CMS. But who sets those lot entitlements? The first lot entitlements for any body corporate are set by the developer. Now days contribution lot entitlements are required to be equal, unless being equal would then result in […]
posted on April 1, 2013 by
Body Corporate Levies & Expired Current Levy Year Issued
Body corporate levies are set on a year to year basis, three months after the start of the new financial year. For reporting this creates issues. Sometimes a disclosure statement or records search will quote levies for a period that has expired. For instance, say the levies are quoted to 31/7/2012 and yet the date of […]
posted on March 31, 2013 by
The Importance of “Levies Paid To” Date
When I bought my first house I found the whole process very stressful; exciting but stressful. So stressful in fact that when all was finally organised and executed and we moved in I realised I’d forgotten to get the power turned on. Luckily there was still power at the house so, score! The next day […]
posted on March 31, 2013 by
Body Corporate Levies
One of the most common misconceptions about body corporates is that they are overcharging for levies or somehow making money off the lot owners. I’m never really sure what nefarious purpose people think is going on, but it’s not at all what’s happening. Body corporates are heavily regulated in almost every aspect and levies more […]
Unless stated otherwise all the information on this website relates to Queensland legislation.
