So guys, there is clearly circumstances where it is preferable to get works done now rather than later.
The issue remains to be – if you want or need the works done now, you have two options. Special Levy or Strata Finance.
Strata Finance works for some however an owners corporation must demonstrate to the loan company that they have raised levies sufficiently to budget for the repayments including interest. This will be a condition of approval for the loan facility. Given that these loans are unsecured you will often see interest rates of over 12% (not sure what Lannock et. al. are currently offering). All owners will need to contribute to the repayments including the interest component by way of increased levies according to their unit of entitlement.
On the other hand many owners corporations will prefer to raise a special levy to carry out works now. If some owners do not have cash up front, a secured loan or extension on their mortgage to pay the special levy will cost them a lot less in interest repayments over the course of their loan.
The other issue is the heightened confusion and uncertainty added to prospective purchasers when they see strata loans disclosed as opposed to special levy payments.