Hi Boxfree
It’s Paul here from Lannock Strata Finance.
My first question is the same as Jimmy’s – was there, technically, a quorum when the finance issue was discussed and voted upon? If not, it’s back to square one.
I think it’s quite common for corporations to think “ok, this is easy, we’ll borrow the money and pay it off over a couple of years”. Our experience is that people who can pay a loan off in a year or or two could almost as easily have a single special levy or a levy payable in a few installments.
Lannock will lend for as short a period as a few months, but in practice, most people borrow for 7 years with quite a few borrowing for 10 or more years.
As we are lenders to the corporation, our suggestion would be to talk with your other owners with a view to having the loan term changed at the next GM or to hold an EGM. in the meantime, you could ask the committee to consider drawings funds with an initial “interest only period” – this would halve the corporation’s cash outflows.
Whatever you do, don’t be in arrears as then you’ll be unfinancial and unable to vote in any meeting.
Please give us a shout if you’d like us to come and talk to the committee or to a general meeting.
Regards
Paul
paul@lannock.com.au or 1800 85 15 85