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I’ll pop my two cents in here.
Purchased over 55s apartment in 2010. Lived there 4 years then moved back to my home & leased over 55s. Good rental return. Paid $390k. Now probably worth $850k. Asked Strata Manager before last AGM to advise how i list a suggestion re putting in a new DA to council changing from SEPP5 to normal Strata. At AGM, Strata Manager voted the item ‘out of order’. I’m not sure how to go about relisting it for consideration at next AGM without it being ‘out of order’? Value of apartment would increase from $850k to $1 million.
2. At last couple of AGMs, increase in Levies not going up sufficiently to cover ongoing maintenance & repairs. Most owners are on pensions. I suggested that making it normal strata allows younger people to buy who can afford ongoing building maintenance & repairs. Building now 12 years old. How do we manage when it gets to 20 years old? Most owners in mid 70s to mid 80s now. Next 10 years will be interesting. I’m now considering selling next year. Good suburb.
Two issues here. Often the ‘Committee’ who have many proxies in their hands often make decisions favourable to themselves. Many ‘Committees’ are made up of 5 persons or less, voted for from friendly proxies (or in person) at the AGM.
Then you have Strata Managers who have been in place for many years (in my case 10 years) who are willingly siding with the ‘Committee’ who vote to keep the Strata Manager in place & pay their fees. The Strata Manager side with the these Committee members even though they are aware that a number of owners are not being treated fairly but want to keep their Strata Management Strata Agreement in place each 3 years.
Cynical? Yes. True? Yes. Sad? Yes
5 owners who control 11 proxies in a complex of 21
Is there a remedy? NCAT?
Two things in our favour and a couple of observations:
- We did not put the fence up. the fence was erected by the builder at the time of the build. Builder subsequently went into receivership.
- We purchased the apartment ‘as it was’ and we were aware it was to be maintained as per common property. We maintained it as no one could get access to it other than going through our apartment and the Strata Manager was aware of that.
- It has now been 11 years and, had the area not been maintained by us, it would be overgrown and a danger to the complex due to vermin etc.
- If, in the future someone buying the unit wants to make the area ‘exclusive use’ we will certainly advise that that option is available to them
I guess I’ll throw a cat amongst the pigeons.
We purchased our apartment in 2010. When purchased it was already encircled by a fence but was classed common property. The Chairman of the committee told us we could do as we like as no one else could use it so we did. Huge birds of paradise were removed from the small space & we added pavers and gravel to make it easy to maintain & made it attractive.
We were asked recently if we wanted to make it an exclusive use area by the Strata Manager as we used a ‘photo’ of the area when it was advertised for rental last year. We asked the cost involved & what benefit it would be to us to make it exclusive use. Other than being able to advertise it with photos of the area, there was no other benefit. No further action has been sought since we emailed. Had we not tended the area it would be an overgrown jungle now with vermin etc taking over. What happens now? I’ve no idea but the tenant is enjoying the garden space!
I’d be interested to know myself.
I the owner, just paid for an engineers report raised by the strata manager even though water ingress was found on an outside common property wall. The water affecting the wall & paint bubbling. As there was no ingress internally I had to pay the bill. Around $1800.
2. Many stratas are run by Committees who do not want Levies increased to cover obvious maintenance. This is often due to the fact many owners in the complex are in over 55 sepp5 strata & cannot afford increased Levies & the committee, who are also owners, do not want Levies increased as they are pensioners. They won’t sell, so Levies do not meet requirements or requirements of maintenance are ignored. Special Levies are never raised.
Again, I agree. But the unavoidable part of this equation is that buildings deteriorate over time and owners corporations have to fix them. What’s missing is education and understanding about their options and the consequences of doing nothing until the situation reaches breaking point.
Problem is that by the time the maintenance has deteriorated to a point of HAVING to be addressed, the owners on committee have either moved on, died or too ill to care. The breaking point is then borne by those owners left. In the over 55s complex I’m in, the rogue committee members just spend the sinking fund on their own apartments & those of their proxy friends. They use up the sinking fund then they die or sell. It’s sad to watch. NCAT do little to help. Seems strata is not a focus anymore of any Department
This isn’t about excessive owners corp powers – chance would be a fine thing – it’s about people not putting money aside to pay for inevitable repairs then whining when the bills come in.
Jimmy, I think you have missed a couple of points here.
1. There are Committees within strata that ARE unfairly using their proxies to push their OWN agendas & use their powers to ensure those who vote for them are favoured. Nothing can be done about this & Strata Managers support those who pay their management fees & vote to extend their management.
2. Many stratas are run by Committees who do not want Levies increased to cover obvious maintenance. This is often due to the fact many owners in the complex are in over 55 sepp5 strata & cannot afford increased Levies & the committee, who are also owners, do not want Levies increased as they are pensioners. They won’t sell, so Levies do not meet requirements or requirements of maintenance are ignored. Special Levies are never raised.
The elderly couple in the example given in this story, I fear, is wider than realised. I understand their windows were not replaced? However they paid $13k of the $18k debt. Should family have moved in to help? If they could, Yes.
But why do they have to sell & move from an area they have lived in all their lives because of strata charges? NCAT is expensive & costs may have been issued against them if they tried to be heard through that avenue. Reverse mortgages are difficult to get on an apartment & more difficult if not impossible on Sepp5 units. Maybe they were just too old & frail as the years passed to do more than they did to keep their home. I don’t know, nor do you, but there are nasty Committees out there who are feathering their own nests at the cost of others &, if you are an owner, even the owners corporation can do little if more on the owners corp are proxy friends of the committee. A million does not go far these days. Even aged care facilities can cost $750k per person. (My experience with parents to keep them in the area close to family).
Maybe you can open a forum to gauge just how many are in a similar position, I personally know those in our Sepp5 complex are bullied by a long term committee (11 years)
Can I ask does the Tree Dispute act cover neighbours on private land next door?
Their clumping cane is some 4 mtrs high now which completely blocks light to my bedroom 2 apartment. They are in a home. I’ve asked them to cut it back but they have refused. Owners Corp asked too. No luck.
It seems I have to go to court. Is it local court (not NCAT) as private property next door. I’m in a strata apartment.
Thank you