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
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
As a new build & no construction background go for an inspection regardless. It will pick things you’re unanticipated of.
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
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.
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
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.
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
Ask & get the vendor/agent to show you or explain the costs.
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
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.
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
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
