All Topics / Help Needed! / Body Corps

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  • Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Hi when buying a townhouse in a new development of a mixture of townhouses and 3 and 4 level units, as the body corps is only just starting do you still require your solicitor to search it / check on adequate insurance levels and proposed admin and sinking funds??

    This will be our first purchase dealing with Body Corps so any info at all will be helpful

    Also should we have a building inspection done or just a builders handover done before settlement ??

    Thanks to all that read and respond

    JPS25

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    If the property is new the admin & sinking funds budgets will be readily available to you.

    You do however have to remember that they are only a budget prepared for the first 12 months after which time the Body Corporate will make adjustments going forward once they get an indication of the actual expenses.

    Course there could be a big difference between the budget and the actual's.

    In saying all of this being a small development there should be a limit to the amount of expense.

    In regards to the Building Insurance you can merely ask for a copy of the Certificate of Currency and this will give you an indication as to the premium and the policy inclusions.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    As a new build & no construction background go for an inspection regardless. It will pick things you’re unanticipated of.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Thanks Richard and Scott

    I will definitely do a building inspection best to know know than a few years down the track

    Body Corps Management is going to be through Ernst but are not signed up until buildings are officially finished and cleared by council mid Jan. I spoke to Mark who will be managing the insurance for the complex of 13 Town house's and 56 units split into blocks of 20 (3 level with car park underneath) and 36 (4 level), who said the insurance would be with CHU underwritten by QBE.

    Yes I do have the projected Body Corp for the first year the town house is $1726.56 without insurance. Insurance is projected to be $128.26 or $6875.12 for the whole complex.Sinking fund first year $21,120.17 and admin $83,704.85. The units have a few other Levi's imposed due to lifts etc all in with Insurance $182,320.14 for the first year is proposed for the 69 lots plus on site managers office and storage spaces car parks etc

    Richard I will make sure we receive a certificate of currency for the Body Corps Insurance

    Thanks so much for your help

    You guys on here are great I have learnt so much from you all

    Jean

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    What are your total BC fees?

    Lifts are one of the most expensive items a body corporate needs to cover each and every year.

    Is there a pool? Also expensive to maintain.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Hi Derek

    No Pool glad to say. There are lifts in both the 3 and 4 story unit buildings they have been slugged extra charges compared to the townhouses.

    Our BC fees are set as $1726.56 plus allowing $128.26 for insurance so we will be up for approximate $1854.82

    BC's for the whole 69 units is set at $182,320.14 of which $6875.12 of it is the approximate cost of Insurance.

    Went to have another look today, should all be finished by mid Jan looking good

    Seeing our solicitor Tuesday to sign contract by POA for Paul as he works away and he is adding a few clause's in for us that we have asked for.

    Being over Xmas I put in for longer finance of 28 days and that the remainder of deposit to be paid on settlement when we did the expression of interest so have only paid $1000 as the holding deposit. So just adding subject to valuation and building inspection satisfactory to Paul into the contract.

    Hopefully by mid to end Jan we will have our 3rd IP all going well

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    As  it is a bit of a mixed development ie highrise & townhouses, just confirm if you are subsidising the lifts if you don't own one of the buildings with the lift access.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Hi Scott

    I don't think we are as the high rise have at least 2 extra columns of costs that the townhouses don't have they are looking at $3300 and above depending on buy in and size the townhouses are $1850 up depending on size. Certainly hope not I know it did cross my mind but with the units having at least two extra costs added I thought that might be towards the lifts and other associated costs of higher buildings.

    How would I be able to find this info out ??

    Thanks very much for your help Body Corps is a bit of a minefield

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Ask & get the vendor/agent to show you or explain the costs.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Hi Scott

    I think I understand what each amount is set for.

    I am more interested in whether the level for the Insurance is set right, that everything is fully covered, plus enough going into the sinking funds 

    I did speak to the Mark from Ernst who are going to be in charge of the insurance side of things and he said that it was just a guide at the moment but shouldn't be far off

    Anyone know what they are like ?

    I guess its just all new to me just trying to make sure I have checked everything I that I should

    I spoke to the agent on Saturday and he said the building will be covered for the first 6 years under builders insurance

    Thanks again I have learnt a lot of everyone on here as you have all been there done that at some time or other and your help and advise and time is really appreciated

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi JPS,

    Sounds like you are covering the bases pretty well.

    Make sure you get assistance with  your conditions that you want to insert in the contract. They need to be written so there is no ambiguity and that your interests are well served through them.

    All the best with it.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Thanks Derek

    Having our solicitor insert the conditions on Tuesday and witness signing of the contract

    So glad I got a stamp made a few months back as I would be in there all day if I had to hand write the Power of Attorney stuff over and over

    Thanks everyone for your help

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Well I jumped through hoops getting this one

    Solicitor didn't like it because it was Nras or social housing as he called it

    I made the contract subject to finance and also subject to both the valuation and building inspection being satisfactory to Paul and 28 days on everything

    Our bank asked question after question but the 2 loans did get approval by them not signed any loan docs yet but do have them

    Valuation came out at purchase price

    This left Building

    We had inspectmyhome there on Tuesday I went along too so I got info first hand

    Well not impressed with the foreman in charge of the building that's for sure he wasn't there but obviously had not been doing his job

    As you have gathered it definitely was not a satisfactory building report

    Builders say they will put everything right

    I have also had a friends son take a look at the report he has been in the building trade main trade carpenter for 30+ years and has been a supervisor/foreman for the last 12 at least

    His answer  You got it walk away as very shoddy work

    Given body corps is involved I do think that is what we will be doing as we still have a week to go before going unconditional

    So glad we put the building clause in and had the inspection done

    So looks like we are still at 2 IP's for the time being number 3 will have to wait

    Oh well now I have to cancel the bank loans too after all the hoops, can just see my solicitor saying told you so even though it was for a very different reason ha ha

    Thanks for everyone's help along the way

    Jean

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