Because you bought in a complex with a lift and a pool?
Yep, those sort of facilities can be a killer. I remember looking at complexes up in QLD a few years back. Some of the rental returns are very appealing – but then you see how much the body corp fees set you back and it doesn't seem so attractive.
How much are your fees general?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
So that the owner of the building can hold all the strata funds in a trust account that is very sneakily a offset account. 100 k plus in the sinking fund equals more cash in his pocket. IT happens.
Because you relinquished the right to control your expenses when you bought the unit.
Go to the body corporate meetings and find out exactly what the strata is so high. Is it going into a sinking fund? Is it paying repairs or maintenance?
Before you buy a unit you are actually entitled to see the minutes of the body corporate (for the last 2 years I believe). Always worth checking this before buying a unit.
7 things to check before buying a unit – http://positivecashflowaustralia.com.au/buying-an-investment-unit/
Ryan McLean | On Property
http://onproperty.com.au
Email Me…because your rent is too low?
Catalyst, how did you know?
Jamie M, I'll find out about the fees general and I'll get back to you?
Wilko1, what do you mean owner of the building? All of the units are separately owned by individuals, couples or other entities. Wilko1, am I missing something here?
Thank you Ryan for everything you said. I will be looking into everything you mentioned.
Scott No Mates, the rent is set to drop by a third in may because of the pull back in mining. The fees aren't usually that high but it is a concern. I am looking into it. Thank you.
I think wilko is saying that the body corp management company may own property somewhere. It may have a mortgage over it. Your strata fees may be sitting in an offset account against that mortgage..
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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