There is so much negative comments towards Body Corp when it comes to purchasing a Property, but does anyone really have a good reason why?
Let’s bring forward some of the common concerns relating to Body Corp:
I don’t want to pay an additional $$$ every year for Body Corp.
- Did you know that the fees for Body Corp cover items such as;
- Pool Maintenance
- Garden Maintenance
- Maintenance on the building itself (example: lifts in a unit complex)
- Maintenance on the roads (if it is in an Estate)
If you have any of the above items for your property, you pay for these expenses in full yourself… why not have these expenses broken down into the number of owners to cover the cost and therefore reduce the overall expense for yourself?
Example: If you have a pool, you may have to spend $3,000 per year on maintenance. With Body Corp, they will break this cost down by the number of owners (let’s say 30 owners in the complex), therefore you only have to contribute $100 for the year to the Body Corp to then look after the maintenance and general running of the pool – doesn’t $100 sound better than $3,000?
My friend had a bad experience with Body Corp and got ‘hit’ with having to pay additional $$$ one year.
- This was due to the new rulings that applied to start a ‘sinking fund’.
- A sinking fund is money that is built up over the years to cover for long term maintenance, example are fences, roads, etc.
- When this sinking fund ruling came into play, the current owners had to contribute excess funds the first year to ‘catch up’ the sinking fund to prepare for the future – this is not something that is required for a new purchase today.
I feel that you end up paying too much for Body Corp.
- When purchasing a property, ask to see the Body Corp Disclosure which will list exactly what items are attended to in the Body Corp scheme.
- This will help you determine if the cost you are paying for the Body Corp is a reasonable amount.
So why not use Body Corp to your advantage and start having a number of people contribute to the maintenance and general up-keep your of property instead of covering all of the costs yourself?