#12706
Sir Humphrey
Strataguru

    Hmm. I checked the letter I had from a property valuer at the time we were planning our extension. It did seem to be in line with what I wrote above from memory. The argument included that there would be little impact on other owners because I stayed within my unit entitlement and funded it entirely myself so there would be little change in the overall costs owners generally.  That valuer's opinion was something I had to submit with the Development Approval. 

    We actually had a debate about this issue in general at an AGM shortly after I extended, though not particularly because of it. One owner proposed that we should apply to have a review and reallocation of unit entitlements. The Act allows that (in the ACT) with a special resolution. The motion was lost resoundingly. I can't remember if the proposer wanted us to all have the same unit entitlements since it was a long time since the place was built and all owners were a similar burden on the OC for ground maintenance and such. Alternatively, he might have wanted to increase the unit entitlements for the minority of units that had had major extensions all within their unit boundaries. I think both views were put during in the debate. Cogent arguments could be made to make the spread of unit entitlements wider or narrower.  In the end few cared to change the status quo.

    While our unit entitlements reflected the size of units at the start (and their cost to build), most of our costs now are not particularly proportional to unit size; a small unit costs the OC more than half as much as a unit twice as big.   Maintenance of our large area of common land is a major cost along with management fees.  Larger units might have more people in them and more chance of wearing out the tennis court or playgrounds but there would not be much in it. Insurance is a significant minority of our costs.   I agree I may have had a 'free kick' in that I contribute no more to insurance yet my greater improvements have been covered/absorbed in the overall insurance valuation of the property. On the other hand for most corporate expenses my extension made no difference.