All Topics / Help Needed! / Who control Strata – its a red tape business!!!

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  • Profile photo of Tech4uTech4u
    Member
    @tech4u
    Join Date: 2011
    Post Count: 45
    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353

    If you are a unit owner, then you are entitled to a vote at the AGM. Vote against any motion that you disagree with.

    You should understand that the strata manager is looking after your interests as a unit owner – they arrange (you pay) for insurances, maintenance, common area cleaning etc – all of which cost money to run. Prices generally increase and the strata manager should be getting a few prices prior to the AGM to prove that they are getting value for money for the contracts which the BC is entering on your behalf.

    Profile photo of WakeWake
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    @wake
    Join Date: 2003
    Post Count: 123

    Actually, in NSW it is largely because of govt intervention that levies have been rising. For 40 odd years it was up to the owners corporation how much they contributed to their sinking fund (which is effectively the savings account for longer term, more expensive building maintenance). However very few owners corps were putting sufficient money away to cover these costs and as a result special levies were often required. New govt legislation came in 2005 that now requires an owners corp to have a 10yr sinking fund plan prepared, preferably by a quantity surveyor but at the very least by someone who is qualified to estimate the life of common property components and the cost of replacing/upgrading them. The sinking fund contributions are supposed to be based on this report and subsequently there has been a significant increase in budgets and levies.

    Plus, as IP Freely stated, the budget has to cover certain costs and these costs increase, just as your own personal water, power, insurance, petrol, food etc keeps increasing. If you have never been to an AGM then that is the time to question the costs. Every year you would be supplied with a financial statement showing all costs incurred for the past 12 months, and a proposed budget to cover those costs for the next 12 months. If you don't understand these, speak to the strata manager who can give you more details.

    There is no benefit to the strata manager in increasing costs unecessarily. The levies go into your scheme's trust account, not the agent's bank account, and they do not earn interest on it.

Viewing 3 posts - 1 through 3 (of 3 total)

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